June 13, 2008 — Securing the rights of employees and protecting their benefits once the company they work for gets bought, sold or transferred are the driving forces behind a new plant-closing bill passed unanimously Friday by the Senate's Government Operations and Consumer Protection Committee.
"Plant closing" refers to the sale, transfer, merger or takeover of a business or company — not including businesses closed because of natural disaster or bankruptcy.
"Historically, we have had problems with plant closings in the territory — such as the closing of Kentucky Fried Chicken or the Renaissance Hotel — where employees were left exposed, retaining little or no benefits when the company they worked for was sold," said Sen. Shawn-Michael Malone, committee chairman, during Friday's meeting. "We want to protect the interests of these individuals and make sure that once they decide to transfer over to the new business, they keep their rights and benefits."
The bill also closes various loopholes in plant-closing statutes already on the books, and brings the territory up to snuff with certain federal standards, Labor Commissioner Albert Bryan Jr. added later. Once the new language is in place, any leeway employers have in withholding employee benefits once a company is sold — or skipping out on severance payments once employees find a new job — should be significantly reduced, he added.
The bill also steps up fines for employers who violate the plant-closing law — from $100 to $1,000 per employee — and makes sure an employee's records are transferred from the old employer to the new one once the company has been sold.
Senators also approved a bill transferring eight parcels of land bordering the northern end of Magens Bay, and running west to Little Magens, to the Magens Bay Authority for preservation, upkeep and use. Gaining control of the land would give the authority the ability to keep track of and cut down on the amount of runoff and other pollutants going into the water, said Aubrey Nelthropp, the authority's chairman.
"On the Peterborg Peninsula, there's been a tremendous amount of building," he said. "Facing southside into the beach, we've really had to worry about septic systems and drainage. As you know, Magens Bay is considered a dead-water area — meaning there is no east to west flow that would allow the beach to clean itself. So, we really have to be cognizant of what goes in there, and getting control over this northernmost portion will help us do that."
The bill also sets aside $75,000 from fiscal year 2009 General Fund revenues for the authority to preserve and maintain the area.
The committee also approved a bill swapping six acres of land in Sion Hill, St. Croix, for another six areas in Estate Rattan to allow for the establishment of a buffer zone between the Village Partners and Recovery facility and a planned housing development.
Present during Friday's meeting were Sens. Liston Davis, Carlton "Ital" Dowe, Juan Figueroa-Serville, Louis P. Hill, Malone, Terrence "Positive" Nelson, and Basil Ottley Jr.
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