Sec. 101. Prohibition of unfair reductions to employee and retiree benefits
504 words·~2 min read·
/bill/113/s/2418/is/section-101·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 1113 of title 11, United States Code, is amended— in subsection (b)— in paragraph (1)(A), by striking necessary modifications in the employees benefits and protections that are necessary to permit the reorganization of the debtor and insert minimum modifications in the employees benefits and protections that are necessary to prevent the liquidation of the debtor ; and by adding at the end the following: If the proposal made under paragraph
(1)provides for a modification of the health insurance benefits of employees of the debtor, the proposal shall provide for a modification of the health insurance benefits of officers and directors of the debtor— to, at a minimum, be comparable to the modification of health insurance benefits of employees of the debtor; and such that the health insurance benefits of officers and directors are not more generous than those of employees of the debtor. If the proposal made under paragraph
(1)provides for a modification of any benefit of employees of the debtor other than health insurance benefits, including wages and pension benefits, the proposal shall provide for a modification of such benefit of officers and directors of the debtor that is, at a minimum, in an amount equal to the percentage by which such benefit of employees of the debtor was modified. ; in subsection (c)— in paragraph (1), by striking subsection (b)(1) and inserting paragraphs
(1)and
(3)of subsection
(b); by redesignating paragraphs
(2)and
(3)as paragraphs
(3)and (4), respectively; and by inserting after paragraph
(1)the following: the debtor established by clear and convincing evidence that any modification of the benefits and protections of an employee of the debtor proposed under subsection (b)(1) is the minimum modification necessary to prevent the liquidation of the debtor; ; and by adding at the end the following: The rejection of a collective bargaining agreement under this section constitutes a breach of the agreement, and shall entitle employees of the debtor to a claim for damages. . Section 1114 of title 11, United States Code, is amended— in subsection (f)— in paragraph (1)(A), by striking necessary modifications in the retiree benefits that are necessary to permit the reorganization of the debtor and insert minimum modifications in the retiree benefits that are necessary to prevent the liquidation of the debtor ; and by adding at the end the following: If the proposal made under paragraph
(1)provides for a modification of the health insurance benefits of retired employees of the debtor, the proposal shall provide for a modification of the health insurance benefits of officers and directors of the debtor— to, at a minimum, be comparable to the modification of health insurance benefits of retired employees of the debtor; and such that the health insurance benefits of officers and directors are not more generous than those of retired employees of the debtor. ; and in subsection (g)(3), by striking necessary to permit the reorganization of the debtor and insert the minimum modification necessary to prevent the liquidation of the debtor .