My Requirements for A Coronavirus Stimulus Package: Put Workers First

The COVID-19 pandemic is already causing significant economic hardship across the United States, and workers are bearing the brunt of the consequences. Unemployment claims have spiked 2,579% in Ohio, and nearly 1 in 5 U.S. households has already experienced a layoff or a reduction in work hours. We can only expect those numbers to go up.

Congress must not repeat the mistakes of 2008 and 2009. We cannot bail out corporations without making sure that aid goes to the people who need it most: American workers.

When combined with other worker-oriented safety nets, financial assistance to affected companies can be an important tool — but only if that money ends up in the pockets of workers. And we know from experience that corporations cannot be trusted to do that on their own. In response to September 11th and the Great Recession, Congress provided financial assistance to Wall Street financial institutions and corporations to shore up businesses. But these legislative packages did not include sufficient worker protections.

We’ve seen the results: corporations have more than recovered, making record profits up until this pandemic, while wage growth has been largely flat, and even people with middle class jobs still do not feel stable.

Congress must finally learn the lesson that corporations must be held accountable.

Our message to corporations is simple: If you want taxpayer money, you have to use it to help the people who make this country work. That means any financial assistance (including, but not limited to, grants, loans, lines of credit, fee waivers or reductions, and tax deferrals) provided to corporations must come with strict strings attached, preventing anti-worker practices and ensuring taxpayer investment makes it all the way down to front line workers — not just the C-suite.

As Congress begins to flesh out another economic stimulus package, here are my pro-worker demands to hold corporations accountable:

Prohibitions on any companies receiving assistance provided in economic stimulus package

· Companies are prohibited from making any stock buybacks.

· Companies are prohibited from outsourcing or offshoring any additional jobs, including to U.S.-based contractor companies.

· No financial assistance may be spent to fund anti-union campaigns. Companies must provide a detailed accounting of any other company expenditures spent on company-backed or company-supported efforts to defeat an organizing effort.

· Companies are prohibited from paying stock compensation or offering golden parachutes to any company officers.

· No financial assistance may be spent to fund any efforts to defeat or weaken pro-worker laws being considered in any level of government country-wide. Companies must provide a detailed accounting of any other company expenditures spent on company-backed or company-supported efforts to defeat any pro-worker laws. Pro-worker laws include but are not limited to legislation, regulations, or ordinances related to: minimum wage increases, collective bargaining or organizing rights, paid sick days, paid sick leave, overtime salary threshold, paid family leave, schedules notice, health care benefits, or employee/independent contractor status.

· No company receiving financial assistance may layoff or furlough any non-managerial employees until the company has first eliminated all outside consulting expenses and reduced executive compensation. Reduced executive compensation must remain in effect for the duration of the furloughs or layoffs.

Prohibitions remain in place for 10 years after receiving any assistance or for the duration of the terms of that assistance, whichever is longer.

Requirements for any companies receiving assistance provided in economic stimulus package

· Companies must cap executive officer compensation.

· Companies must remain neutral in any union election campaign.

· Companies must certify annually that it currently provides any contractor, subcontractor or affiliate employees health insurance benefits equal to or greater than hourly health and welfare fringe benefit rates under the Service Contract Act for all hours worked by each employee.

· Companies must enter into profit-sharing agreements with its workers. At a minimum, the profit sharing agreements must distribute 50% of any profitability increases above pre-coronavirus levels to its workers. Distribution of profits must occur on a sliding scale to allocate the most profits to non-managerial workers. These profit-sharing agreements shall be entered into independent of any collective bargaining agreements.

· Companies must certify annually that they have resolved all unfair labor practices, including by holding union elections that have been delayed. Companies may not receive any financial assistance, and ongoing financial assistance shall be suspended, unless that annual certification is provided.

· Companies must certify annually that they have entered into first contract negotiations with binding arbitration in all outstanding contract negotiations. Companies may not receive any financial assistance, and ongoing financial assistance shall be suspended, unless that annual certification is provided.

· Companies must permanently comply with the requirements in Workers’ Right to Training Act (S. 2468) to ensure any investments in technology or automation, which may be accelerated as a result of the COVID-19 pandemic, are predicated on worker consultation and training.

Requirements remain in place for 10 years after receiving any assistance or for the duration of the terms of that assistance, whichever is longer, unless otherwise indicated.

Protections for workers in any bankruptcy proceedings

Companies receiving financial assistance are prohibited from using bankruptcy proceedings to reject or abrogate a collective bargaining agreement for 10 years after receiving any assistance or for the duration of the terms of that assistance, whichever is longer.

Workers must be made a higher priority in any bankruptcy proceedings initiated by any company receiving financial assistance. (See S. 2518 (115th), the Protecting Employees and Retirees in Business Bankruptcies Act of 2018)