Chairs DeFazio, Doggett to Corporations: Put Workers First in Economic Recovery

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For Immediate Release

March 20, 2020

Contact:

Kate Stotesbery (Doggett) 202-494-4620

Beth Schoenbach (DeFazio) 202-591-6277

Chairs DeFazio, Doggett to Corporations: Put Workers First in Economic Recovery

Lead 100 Lawmakers in Call for Corporate Accountability Guardrails in Economic Relief Package

Washington, D.C. – Today, as the COVID-19 pandemic has led to massive layoffs and economic hardship across the United States, U.S. Representative Lloyd Doggett (D-TX), Chairman of the House Ways and Means Health Subcommittee, and U.S. Representative Peter DeFazio (D-OR), Chairman of the House Committee on Transportation, led 100 of their colleagues in urging that any economic relief package for industries affected by the pandemic puts workers—not corporate profits—first and includes strict corporate accountability measures.

"No more bailouts without corporate boundaries," said Rep. Lloyd Doggett. "In any coming bailout, we need to enforce strict limitations on corporations who, in previous crises, have taken care of their shareholders and CEOs while leaving workers behind."

"The people hit hardest by the economic impacts of COVID-19 have been our working families," said Chairman DeFazio. "As Congress works towards a third economic relief package, it is essential that we learn from past mistakes and ensure that our legislation puts them, not CEOs, first."

In 2008, the federal government provided hundreds of billions of dollars to Wall Street in response to the financial crisis, awarding the financial industry a virtually no-strings-attached bailout. The gains for Wall Street were tremendous, while working families were left behind.

Twelve years later, Congress is faced again with crafting an economic recovery package for families and industries impacted by the COVID-19 outbreak. It is imperative that this time, Congress does not make the same destructive mistakes. Joined by 100 lawmakers, DeFazio and Doggett are insisting that any plan must include appropriate guardrails to protect workers and ensure large corporations put the needs of those workers ahead of their wealthy executives and shareholders.

A copy of the letter is below. For a PDF version of the letter, click here.

March 20, 2020

The Honorable Nancy Pelosi

Speaker of the House

U.S. House of Representatives

Washington, D.C. 20515

The Honorable Steny Hoyer

House Majority Leader

U.S. House of Representatives

Washington, D.C. 20515

Dear Speaker Pelosi and Majority Leader Hoyer:

We write to urge that any future legislation considered by the House to provide taxpayer assistance to large corporations put workers first and include essential corporate accountability provisions.

In 2008, the federal government provided hundreds-of-billions to Wall Street to respond to the financial crisis, awarding Wall Street a virtually no-strings-attached bailout. The results for Wall Street were tremendous – a quick return to profitability, large executive compensation packages, major stock buy-back programs, and more.

For working families, the results were disappointing. For years, American families struggled to return to financial stability, and many still have not. Workers lost jobs, hard-earned pensions, benefits and never fully recovered.

There is no doubt that our current crisis is much different than the 2008 financial crisis. Our country is headed toward a recession that will impact everyone from Wall Street's senior executives to America's working families.

We fully support your commitment to ensuring any additional emergency response legislation puts relief for working families ahead of any aid to large corporations. To the extent that any direct assistance to particular industries is considered, we seek some accountability rather than a blank check. To that end, we urge that any legislation include appropriate guardrails for those corporations accepting taxpayer funding, including:

• Workers must come first. Corporations must use federal assistance to maintain their payrolls without demanding concessions on wages or benefits. Workers must be protected in the case of bankruptcy and no funds should be used for anti-union campaigns or to undermine collective bargaining efforts.
• Tax dollars must not be used to reward wealthy shareholders and executives. No stock buybacks, dividends, or executive bonuses until federal funds are repaid in full.
• Cap on senior executive pay. No corporate executives should make more than 50 times the pay of their median worker.
• Workers must have a seat at the table. Corporate recipients of public assistance must reserve at least one seat on their board for a representative elected by workers.
• Companies must be held accountable. An oversight authority must be established to ensure corporate compliance with these conditions. The oversight board must include worker representatives. CEOs should personally certify compliance and violations of the terms should trigger criminal penalties and claw-backs of public assistance.
• Taxpayers must have a stake in the company. Taxpayers should receive equity in return for assistance to ensure that once companies return to fiscal health, the public can benefit from its investment.

Sincerely,