Members of the House and Senate last Wednesday introduced legislation to protect employees and retirees from having to bear the burden when corporations file for bankruptcy.

Corporate bankruptcy reform, sponsored by Rep. John Conyers, D-MI, and Sen. Dick Durbin, D-IL, would provide employees with greate compensation when companies file; increase protection for retirees' benefits; protect employees when companies seek concessions; and protect workers' interests in a reorganization plan or sale of assets. An initial hearing on the legislation is expected this month.

Recent bankruptcy filings have demonstrated vividly why these protections are needed, CWA is arguing. Workers' jobs often are at risk and their pay and benefits are endangered. Retirement promises suddenly disappear as companies use bankruptcy to avoid pension and retiree health care obligations. And what's worse, companies often hike executive pay and bonuses for CEOs immediately before bankruptcy filings, to mitigate the loss management will suffer after being forced to accept cuts in compensation.

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