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For Immediate
Release
5/10/11
Senate
Committee Approves McIlhinney Shared-Work Amendment to Prevent Layoffs
HARRISBURG – The Senate Labor and Industry Committee
unanimously approved an amendment to
Senate Bill 1030 today that would preserve
Pennsylvania jobs by giving employers alternatives to layoffs.
The amendment, introduced by Sen. Chuck McIlhinney (R-Bucks
and Montgomery), would allow employers who are facing the prospect of layoffs to
implement a temporary shared-work program that would reduce employee hours.
Employees that are part of a shared-work plan would be eligible to receive
unemployment compensation benefits for the lost time.
"The slow economic recovery is taking a serious toll on
businesses across the state, and the General Assembly needs take action to
prevent even more state residents from being forced to the unemployment line,"
McIlhinney said. "This bill will give businesses a viable alternative to
eliminating jobs until the economy has a chance to fully recover from the
recession."
Under a shared-work program, employers could reduce normal
weekly hours by 20 to 40 percent. The shared-work plan would be voluntary for
employers and must comply with all applicable federal labor laws.
The plan would also have to be reviewed and approved by the
Pennsylvania Department of Labor. Participating employers must also agree to not
lay off employees during the term of the plan and not hire or transfer new
workers into the affected unit.
The shared-work amendment was added to Senate Bill 1030,
legislation that would provide a mechanism for businesses to receive relief from
charges for unemployment benefits claimed by ineligible claimants.
Senate Bill 1030 will now go to the full Senate for
consideration.
CONTACT:
Heather Cevasco
(215) 489-5000
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