Calendar No.lll Purpose: To establish conditions for loans under this Act. Referred to the Committee on llllllllll and ordered to be printed
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1 AMENDMENT NO.llll Calendar No.lll Purpose: To establish conditions for loans under this Act. IN THE SENATE OF THE UNITED STATES 110th Cong., d Sess. (no.) lllllll (title) llllllllllllllllllllllllllllll lllllllllllllllllllllllllllllllll Referred to the Committee on llllllllll and ordered to be printed Viz: Ordered to lie on the table and to be printed AMENDMENT intended to be proposed by Mr. CORKER At the appropriate place, insert the following: SEC. ll. ADDITIONAL REQUIREMENTS. (a) LOAN CONDITIONS. (1) IN GENERAL. As a condition of receiving financial assistance under this Act, each eligible automobile manufacturer shall provide sufficient assurances, as determined by the President s designee, that the eligible automobile manufacturer shall comply with the following conditions, including entering into new agreements or contracts or modifying any agreement or contract (including collective bar-
2 1 gaining agreements and contracts of employment) as required to meet such conditions: (A) Notwithstanding any other provision of law, no eligible automobile manufacturer may receive a loan or other assistance under this 6 Act, unless such manufacturer reduces its out- standing indebtedness (other than with respect 8 to pension and employee benefits obligations) by 9 not less than two thirds, through a debt for eq- 10 uity exchange. 11 (B) Notwithstanding paragraph (), for 1 the period beginning not later than March 1, and ending on the termination date appli- 1 cable under such paragraph, the eligible auto- 1 mobile manufacturer shall 16 (i) reduce the total amount of com- 1 pensation, including wages and benefits, 18 paid to employees of the manufacturer so 19 that the average of such total amount, per 0 hour and per person, is an amount that is 1 equal to the average total amount of such compensation, as certified by the Secretary of Labor, paid per hour and per person to employees of Nissan Motor Company, Toy- ota Motor Corporation, or American
3 1 Honda Motor Company whose site of em- ployment is in the United States; and (ii) ensure that the work rules that apply to the employees of the manufac- turer are on par with the work rules for 6 the employees of Nissan Motor Company, Toyota Motor Corporation, or American 8 Honda Motor Company whose site of em- 9 ployment is in the United States. 10 (C) Not less than one-half of the value of 11 each payment or contribution made by the eligi- 1 ble automobile manufacturer to the account of 1 the voluntary employees beneficiary association 1 (or similar account) of a labor organization rep- 1 resenting the employees of the manufacturer 16 shall be made in the form of the stock of the 1 manufacturer, and the total value of any such 18 payment or contribution shall not exceed the 19 amount of any such payment or contribution 0 that was required for such time period under 1 the collective bargaining agreement that applied as of the day before the date of enactment of this Act. (D) The eligible automobile manufacturer shall immediately eliminate the payment of any
4 1 compensation or benefits to employees of the manufacturer who have been fired, laid off, fur- loughed, or idled, other than customary sever- ance pay. (E) The eligible automobile manufacturer 6 shall agree to the requirements of subsection (b). 8 () DURATION. Each eligible automobile man- 9 ufacturer that has received a loan or other assist- 10 ance under this Act shall comply with the require- 11 ments of subparagraphs (A) through (E) of para- 1 graph (1) during the period beginning on the date 1 on which the loan or assistance is approved and end- 1 ing on the date on which the manufacturer has paid 1 the full amount of the obligation under the loan, in- 16 cluding any applicable interest. 1 () APPLICABILITY. The requirements of 18 paragraph (1) shall apply to each eligible automobile 19 manufacturer, regardless of whether such manufac- 0 turer receives any disbursement of funds under this 1 Act. (b) PENALTY FOR NONCOMPLIANCE. (1) REPAYMENT OR BANKRUPTCY. The outstanding obligations of a loan or other financial assistance made under this Act shall become due, and
5 1 the eligible automobile manufacturer that received such loan shall immediately repay the full amount of such obligations to the Secretary or, if unable to make such full repayment, immediately file for bank- ruptcy under chapter 11 of title 11, United States 6 Code, if (A) by March 1, 009, an eligible auto- 8 mobile manufacturer that received a loan or 9 other assistance under this Act has not imple- 10 mented and fully carried out the requirements 11 of subsection (a) in a long-term and sustainable 1 manner, as determined by the Secretary; or 1 (B) after March 1, 009, but during the 1 period of applicability described in subsection 1 (a)(), the manufacturer fails to comply with 16 the requirements of subparagraphs (A) through 1 (E) of subsection (a)(1) () DEPOSIT OF FUNDS IN TREASURY. All funds from an eligible automobile manufacturer received under paragraph (1) shall be deposited in the Treasury of the United States.
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