AFA Applauds New Legislation to Protect Employees When Company Files for Bankruptcy
December 9, 2024 - For too long corporations have used bankruptcies as a way to circumvent financial responsibility and cut contracts, jobs, and pensions, especially in the aviation industry. Senator Dick Durbin reintroduced longstanding bankruptcy reform legislation and Josh Hawley joined him this time to make this the bipartisan Protecting Employees and Retirees in Business Bankruptcies Act.
"Bankruptcy should not be a ‘shrewd' business maneuver to slash jobs, dump earned pensions, and cut contracts while executives and Wall Street get rich with court-approved payments and bonuses,” said President Sara Nelson. “The Protecting Employees and Retirees in Business Bankruptcies Act will close loopholes in the bankruptcy process and protect the interests of the workers and retirees who make companies successful. This is one important step toward rebalancing our economy, and we urge Congress to pass it without delay."
Read more about the legislation here.
