[Congressional Record (Bound Edition), Volume 152 (2006), Part 4]
[Extensions of Remarks]
[Pages 5713-5714]
[From the U.S. Government Publishing Office, www.gpo.gov]




INTRODUCTION OF ``FAIRNESS AND ACCOUNTABILITY IN REORGANIZATIONS ACT OF 
                                 2006''

                                 ______
                                 

                         HON. JOHN CONYERS, JR.

                              of michigan

                    in the house of representatives

                        Thursday, April 6, 2006

  Mr. CONYERS. Mr. Speaker, today I am introducing the ``Fairness and 
Accountability in Reorganizations Act of 2006,'' legislation designed 
to protect the rights of workers during corporate bankruptcy 
proceedings which give greater weight to large corporations and the 
executives who run them.
  Many recent corporate bankruptcy filings, including that of the 
Delphi Corporation, have come under fire for the extravagant bonus 
packages they reserve for executives while regular workers are forced 
to accept drastic pay cuts or even job losses. We need legislation to 
ensure that workers and retirees receive the fair treatment they have 
earned when their company is facing bankruptcy.
  The Fairness and Accountability in Reorganizations Act of 2006 would 
guarantee that workers are treated more fairly by limiting executive 
compensation deals and requiring corporations to provide a more 
accurate picture

[[Page 5714]]

of their holdings before attempting to modify collective bargaining 
agreements or promised health benefits during reorganizations. More 
specifically, this simple and effective legislation would:
  Require any executive bonus package to be approved by the bankruptcy 
court for any corporation undergoing or connected to a bankruptcy 
reorganization plan.
  Consider the debtor company's foreign assets when determining whether 
or not a company can modify its existing collective bargaining 
agreement. Some international corporations that are struggling 
domestically use their losses at home to justify breaking contracts 
with American workers while their overall company is still thriving.
  Require the bankruptcy court to take into account the debtor 
company's foreign assets when determining whether or not to modify the 
company's retiree health benefits.
  Require that its provisions apply to any chapter 11 bankruptcy case, 
filed or pending on or after October 1, 2005.
  Congress has gone to great lengths to grant advantages to creditors 
and big business over ordinary Americans. It is time that we include 
the interest of working families in the bankruptcy law. My legislation 
would therefore add a small measure of fairness to a playing field that 
is overwhelmingly tilted against workers.

                          ____________________