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105TH CONGRESS
2D SESSION
H. R. 3397
To require an employer which is subject to the Worker Adjustment and
Retraining Notification Act and who gives a notice of a plant closing
to negotiate in good faith regarding possible means of using the plant
and equipment for continued employment, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 5, 1998
Mr. OBEY introduced the following bill; which was referred to the Committee
on Education and the Workforce, and in addition to the Committee on
Ways and Means, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall within
the jurisdiction of the committee concerned
A BILL
To require an employer which is subject to the Worker
Adjustment and Retraining Notification Act and who
gives a notice of a plant closing to negotiate in good
faith regarding possible means of using the plant and
equipment for continued employment, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Corporate Good Citi-
zenship Contract Act of 1998’’.
SEC. 2. REQUIREMENT FOR NEGOTIATION.
(a) IN GENERAL.—An employer which is subject to
the Worker Adjustment and Retraining Notification Act
(29 U.S.C. 2101 et seq.), which intends to permanently
shut down a site of employment, and which serves or is
required to serve a written notice of the closing of such
site in accordance with section 3 of such Act (29 U.S.C.
2102) shall, beginning not more than 10 days after the
date the employer is required to serve such notice, agree
to negotiate in good faith with—
(1) any union representing the employees in
such plant or if there is not such a union, a commit-
tee selected by such employees to represent their in-
terests, and
(2)(A) a committee of public officials and rep-
resentatives of employees in the plant and residents
of the community in which the plant is located des-
ignated by the government of the political subdivi-
sion in which such plant is located, or
(B) if no such committee is designated, the
chief elected officer of such government,
regarding possible means of using all or part of the build-
ing and equipment of such plant to provide continued em-
ployment in the area in which the plant is located.
(b) SALE.—If as a result of a negotiation under sub-
section (a), the union or other representative of employees,
the committee if designated, or the chief elected officer
if no committee is designated, requests, within 180 days
of the date of beginning of negotiations under subsection
(a), the employer to sell all or part of the building and
equipment of the plant to be closed to a buyer who is able
and willing to use the building or equipment to provide
employment either at the plant site or at another location
within the affected county or metropolitan statistical area,
the employer shall, beginning within 90 days of the date
of the request, engage in good faith negotiations to sell
all or part of the building or equipment, or both, to such
buyer for that purpose.
SEC. 3. SANCTION.
(a) COMPLAINT.—Any employee of an employer who
is subject to section 2 may complain to the Secretary of
Labor that the employer is not negotiating in good faith
as required by subsection (a) or (b) of section 2.
(b) TAX DEDUCTION.—If the Secretary of Labor de-
termines on the basis of a complaint filed under subsection
(a) that an employer did not enter into good faith negotia-
tions as required by section 2(a) with any party designated
in that section expressing an interest in undertaking such
negotiation or did not enter into good faith negotiations
to sell all or part of a building or equipment to a willing
and able purchaser as required by section 2(b), or both,
such employer, and any person affiliated with the em-
ployer, may not take a deduction from Federal taxes for
depreciation (or amortization) for any plant and equip-
ment of the employer placed in service during the 10-year
period beginning on first day of the calendar year in which
the notice under section 3 of such Act is required to be
made.
SEC. 4. EFFECTIVE DATE.
This Act shall apply with respect to any plant which
is closed after March 5, 1998 or for which a notice of
closure under section 3 of the Worker Adjustment and Re-
training Notification Act was pending as of such date. If
a notice has been served for a plant under section 3 of
such Act before such date, the negotiations required by
section 2(a) with respect to such plant shall begin within
10 days of the date of the enactment of this Act.
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