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Stop Delphi, other companies from abusing bankruptcy court!

Sen. Evan Bayh of Indiana and Rep. John Conyers of Michigan have introduced a bankruptcy reform bill designed to eliminate this abuse of the bankruptcy process, which has occurred not only at Delphi, but during several other recent corporate bankruptcies.

The Fairness and Accountability in Reorganizations Act of 2006 (S. 2556; H.R. 5113) would close some of the loopholes that have allowed executives at Delphi to reward themselves while slashing wages and benefits for working families. Management should not be allowed to enrich themselves on the back of workers and retirees.

This bill also would require bankruptcy judges to take into consideration a company's foreign operations, as well as its domestic ones, in ruling on Section 1113 and 1114 motions to reject collective-bargaining agreements and retiree health benefits. Companies should not be allowed to shift resources and production to overseas operations, at the same time they are pleading poverty in an attempt to slash wages, benefits and jobs in the United States.

In addition, Sen. Ted Kennedy of Massachusetts and Rep. George Miller of California are circulating a sign-on letter that calls on Delphi to provide workers, retirees and their communities with current and necessary financial information to show whether the company's proposed wage and benefit cuts and facility closings are truly necessary. This letter emphasizes that Delphi has an obligation to provide information to show whether its proposals are limited to the minimum changes required to allow Delphi to eventually return to profitability, and whether the proposed changes are being implemented in a gradual, humane manner that gives workers, retirees and communities the longest possible time to adjust.


Action Needed!
Please contact your senators and representative as soon as possible on these two issues. Urge them to co-sponsor the Bayh-Conyers bankruptcy reform bill (S. 2556; H.R. 5113). In addition, ask them to sign on to the Kennedy-Miller letter urging Delphi to provide current and necessary financial information to workers, retirees and their communities.

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