VAN DREW/JOHNSON/EGAN PLANT CLOSING BILL BECOMES LAW

VAN DREW/JOHNSON/EGAN PLANT CLOSING BILL BECOMES LAW

New Law Will Create Safeguards Against Mass Layoffs

(TRENTON) – Legislation Assemblymen Jeff Van Drew, Gordon M. Johnson, and Joseph Egan sponsored to combat “take-the-money-and-run” plant closings by major corporate employers in New Jersey today was signed into law today by Governor Jon S. Corzine.

The measure (A-1044/S-472) was crafted by Van Drew in October of 2004 in the wake of aircraft engine repair and overhaul company Dallas Airmotive’s decision to shutter its facility in Millville, Cumberland County.  The Dallas Airmotive plant was a major South Jersey employer, providing jobs for 240 area families.

“Unexpected closings are absolutely devastating not only to the hard working men and women these plants employ, but to their families and our regional economies,” said Van Drew (D-Cape May/ Cumberland/Atlantic).  “We must do everything in our power to create future safeguards against mass layoffs.”

The new law will require all companies with 100 or more employees to give 90 days notice before initiating a plant closing or mass layoff.  Notice would need to be provided to the state Commissioner of Labor and Workforce Development, the local municipality, the employees, and their representatives.

Companies that fail to abide by the new directive will be required to provide terminated employees with one week’s worth of severance pay for every year that they were employed by the company.  This punitive severance pay will be in addition to any severance provided by the employer for any other reasons.

 “For a displaced employee who has spent years of his or her life as part of a highly skilled workforce at one of our state’s many large manufacturing plants, finding a new job that provides the same salary and benefits needed to support a family can be next to impossible,” said Johnson (D-Bergen). 

Under the new law, the state Department of Labor and Workforce Development will be charged with establishing a plant closing response team to provide counseling and other appropriate services to employees involved in these mass layoffs.

“Unfortunately, plant closings sometimes cannot be avoided.  This new law will provide these employees with sufficient time and resources they need to protect their families and their livelihoods,” concluded Egan (D-Middlesex/Somerset).

The act will take effect immediately.

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