New York State Acts to Reduce Plant Closings

Monthly Labor Review, February 1987 | Go to article overview

New York State Acts to Reduce Plant Closings


New York State acts to reduce plant closings

The governor of New York and leaders from business and labor signed an agreement intended to "help secure the economic future of the State's citizens' by reducing the number of plant closings and the resulting job losses. The New York Compact sets the following goals:

Target government resources to help avert plant closedowns and employment cutbacks and, if that is not possible, to aid the affected community, company, and employees.

Ask business to voluntarily give advance notice of plant closings and major layoffs.

Provide extended health insurance to employees who lose coverage as a result of plant closings or major layoffs.

Require companies applying for public development assistance to give advance notice of plant closings and major layoffs.

To achieve these goals, the Compact calls for the State to develop a system to monitor local economic activity and give the earliest possible warning of plant shutdowns or employment cutbacks. The State also will allocate funds, both grants and loans, to be ued to provide 4 months of health insurance to employees displaced because of plant closings and, if necessary, include funds in the 1987 State budget to continue this program. In another fiscal action, the governor agreed to support a $10 million allocation in the 1987 budget to be used for aiding companies in distress.

To facilitate the program, the Compact calls for action by government, labor, and business to cut work stoppages and layoffs by "improving the climate for business and labor.'

For its part, labor agreed that work stoppages are an economic weapon of last resort; mediation services should be used to avert work stoppages; and that binding arbitration may be a viable alternative for ending contract disputes, but other forms of dispute resolution should be considered. …

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