Expresses the sense of Congress that the abuse of the provisions of bankruptcy law by certain coal industry employers is damaging to the economic health of the United States, as well as to the employees who are directly harmed by such legal abuses.
Amends Federal bankruptcy law to declare that sale by the bankruptcy trustee of a facility owned or operated by a coal industry employer involved in coal production, processing, or transportation is subject to the labor rights of the current and former employees of the debtor.
States that if employees at such facility are represented by a labor organization, such organization is conclusively presumed to enjoy majority support for a period of one year from the date of such sale, or such longer period as required by applicable nonbankruptcy law.
Sets forth criteria for approval of an application to reject a collective bargaining agreement by a coal industry employer relating to a covered facility.
States that obligations arising under the terms of a collective bargaining agreement before the entry of bankruptcy relief are secured by a lien on all of the debtor's assets.
Declares that all members of a debtor's controlled group of corporations are jointly and severally liable for damages arising as the result of the court-approved application for the modification of retiree benefits owed by a coal industry employer relating to a covered facility. Declares all such claims entitled to priority status.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1367 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1367
To amend title 11 of the United States Code to protecting the labor
rights of current and former employees of coal industry employers that
are debtors under such title.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 17, 2005
Mr. Boucher (for himself, Mr. Costello, Mr. Rahall, and Mr. Strickland)
introduced the following bill; which was referred to the Committee on
the Judiciary
_______________________________________________________________________
A BILL
To amend title 11 of the United States Code to protecting the labor
rights of current and former employees of coal industry employers that
are debtors under such title.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. FINDINGS; SENSE OF THE CONGRESS.
(a) Findings.--The Congress finds the following:
(1) The workers who mine American coal have fueled nearly 2
centuries of industrial development, and are crucial to the
Nation's economic well-being.
(2) The Federal Government has had a central role with
regard to both the coal industry and the health and welfare of
coal miners. Both the Congress and the executive branch have
frequently intervened in the coal industry to protect the
interests of both coal miners and the industry itself. For
example--
(A) the Congress enacted legislation--
(i) regulating the coal industry to protect
the health and safety of coal miners; and
(ii) guaranteeing health care for coal
miners and their families, and providing
benefits to victims of black lung disease; and
(B) the Executive Branch has seized the Nation's
coal mines for the purpose of negotiating a collective
bargaining agreement on the mine owners' behalf, has
otherwise frequently intervened in collective
bargaining in the coal industry, and has created
numerous panels and commissions to study problems and
issues unique to coal mining communities and the coal
Industry.
(3) Because coal is an abundant domestic resource, a strong
coal industry serves to reduce American dependence upon foreign
oil and is vital both to commerce and to the defense of the
United States.
(4) As the result of the abuse of the provisions of
bankruptcy law, certain coal industry employers have been able
to gain unfair advantages over their competitors, primarily at
the expense of their employees.
(b) Sense of the Congress.-- It is the sense of the Congress that
the abuse of the provisions of bankruptcy law by certain coal industry
employers is damaging to the economic health of the United States, as
well as to the employees who are directly harmed by such legal abuses.
SEC. 2. AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE.
Title 11 of the United States Code is amended--
(1) in section 101 by inserting after paragraph (5) the
following:
``(5A) Coal industry employer.--The term `coal industry
employer' means an employer in the coal industry, and all
members of the employer's controlled group of corporations and
all trades and businesses under common control (within the
meaning of sections 52(a) and 52(b) of the Internal Revenue
Code of 1986).
``(5B) Covered facility of a coal industry employer.--The
term `covered facility of a coal industry employer' means any
facility owned or operated by a coal industry employer that is
involved in the production, processing, or transportation of
coal.'';
(2) in section 363 by adding at the end the following:
``(p) Notwithstanding subsection (f), a covered facility of a
debtor that is coal industry employer that is sold by the trustee shall
remain subject to the labor rights of the current and former employees
of the debtor. For purposes of this subsection, the term `labor rights'
means--
``(1) if the employees at a covered facility of a coal
industry employer to be sold are covered under the terms of a
current collective bargaining agreement (other than an
agreement that has been rejected pursuant to the terms of
sections 365 or 1113), the obligations of the debtor arising
under that agreement or under the National Labor Relations Act;
or
``(2) if the employees at a covered facility of a coal
industry employer to be sold are represented by a labor
organization but are not covered under the terms of an current
collective bargaining agreement, the obligations of the debtor
arising under the National Labor Relations Act.
Furthermore, in the case of the sale of a covered facility of a coal
industry employer at which employees are represented by a labor
organization, such labor organization shall be conclusively presumed to
enjoy majority support for a period of 1 year from the date of such
sale, or such longer period as required by applicable nonbankruptcy
law.'';
(3) in section 1113 by adding at the end the following:
``(g)(1) Notwithstanding any other provision of this section, no
application for the rejection of a collective bargaining agreement
between a coal industry employer relating to a covered facility of such
coal industry employer shall be approved unless the following
additional conditions are met:
``(A) The information provided pursuant to subsection
(b)(1)(B) has been personally verified by the principal
officers (including the principal executive officer and
principal financial officer) of the debtor under penalty of
perjury.
``(B) As soon as practicable after the filing of an
application under this section, the Secretary of Labor shall
submit a list of five disinterested individuals who are
qualified and willing to serve as trustees in the case. The
United States trustee shall appoint one of such individuals to
serve as trustee in the case.
``(C) The court finds that the executive management of the
debtor has not received any wage increases or bonuses during
the period that the case is pending under this title, or within
the year preceding the filing of the petition, or that any such
wage increases or bonuses have been disgorged and refunded to
the debtor.
``(D) The court finds that the proposal made pursuant to
subsection (b)(1)(A)--
``(i) does not purport to relieve the debtor, or
the purchaser of a covered facility of a coal industry
employer, from any obligations otherwise arising under
the National Labor Relations Act;
``(ii) provides that the purchaser of any facility
owned by the debtor is to be considered a `successor'
under the National Labor Relations Act;
``(iii) does not abridge labor rights, as defined
in section 363(p); and
``(iv) provides that existing employees retain all
noneconomic employment rights provided under the terms
of the collective bargaining agreement (including the
right to not be terminated without cause and any recall
rights following a layoff), both with regard to the
debtor and the purchaser of a covered facility of a
coal industry employer.
``(2) Any obligations arising under the terms of a collective
bargaining agreement prior to the entry of relief under this section
shall be secured by a lien on all of the assets of the debtor.''; and
(4) in section 1114 by adding the following at the end:
``(m) If the court enters an order approving an application for the
modification of retiree benefits owed by a coal industry employer
relating to a covered facility of such coal industry employer, all
members of the debtor's controlled group of corporations and all trades
and businesses under common control (within the meaning of sections
52(a) and 52(b) of the Internal Revenue Code of 1986) shall be jointly
and severally liable for all damages arising as the result of the entry
of such order, and all such claims shall be entitled to priority
pursuant to section 507(a)(1).''.
SEC. 3. EFFECTIVE DATE AND APPLICATION OF AMENDMENTS.
This Act and the amendments made by this Act shall take effect on
the date of the enactment of this Act, and shall apply with respect to
cases commenced under title 11 of the United States Code before, on, or
after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on Commercial and Administrative Law.
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