U.S. Rep. Frank Mrvan, D-Highland, introduced legislation, on Monday, that would prevent corporations that lock out workers from doing business with the federal government.
“Members of organized labor built our region and are the backbone of our economy,” Mrvan said in a Monday night statement. “International, off-shore companies cannot continue to disrespect American workers while benefiting from federal funding and tax credits. I am taking this action to prevent any company that locks out American workers from receiving our tax dollars.”
Mrvan’s legislation is officially called the Preventing Revenue Opportunities for Workplace Lockouts and Retaliation, or PRO-WORK, Act, according to legislation documents.
According to a news release, the legislation would prohibit employers from receiving federal funds or tax credits because of a lockout. Federal funds would be withheld for a “period equal to the duration of the lockout,” and employers could not receive tax credits for the corresponding taxable year.
If a company engages in a subsequent lockout, it would be ineligible for federal funds for one year and prohibited from receiving a tax credit the following year.
Roxanne Brown, international president of the United Steelworkers, said in a statement that the union thanks Mrvan for the legislation and for standing with its members. She encourages Congress to support the bill as well.
“When an employer locks out workers, refusing to let them on the job and depriving them of paychecks and health insurance benefits in an attempt to extract concessions, it’s not just the workers and families who suffer — it’s whole communities,” Brown said in her statement. “Rep. Mrvan’s much needed legislation would help balance the scales, prohibiting corporations that take these drastic and punitive measures from receiving federal money and benefiting off the backs of taxpayers they are actively hurting.”
Mrvan has been outspoken in his opposition to the BP Whiting Refinery’s lockout of more than 800 union employees that has gone on for more than five months.
President of USW Local 7-1 Eric Schultz thanked Mrvan for his support in a statement, saying the legislation puts “real consequences against communities that deprive working families of their income and livelihoods.”
“Our members know firsthand that a lockout doesn’t stop at the workplace gate. It impacts workers, their families, local businesses, and entire communities,” Schultz said in his statement. “Corporations should not be able to inflict that kind of economic harm and then expect the same taxpayers they are hurting to help fund their bottom line.”
According to Post-Tribune archives, BP and USW 7-1 last held their 63rd formal bargaining session June 10, their first since May 22. Negotiations began Jan. 5, and the previous contract expired Jan. 31.
Multiple Northwest Indiana government bodies have asked BP to end the lockout as negotiations continue. The Whiting-Robertsdale Chamber of Commerce and city of Hammond both returned monetary sponsorships for July’s Pierogi Fest and Festival of the Lakes, respectively.
A BP spokesperson said the company is aware of Mrvan’s proposed legislation.
“We remain committed to engaging on these issues in a respectful and constructive manner,” the company’s Wednesday statement read.
The corporation sent a letter on Aug. 26 to Schultz and Robert Lofton, USW Sub-District 5 director, asking to meet again and agreed “to engage the assigned mediator from the Federal Mediation and Conciliation Service (FMCS) to help accelerate progress toward an agreement. To date, the union has not responded to that request.”
BP and the union met with Gov. Mike Braun’s office on July 30 to discuss the status of negotiations.
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BP also shared the letter with elected officials, according to a previous email from the company. The company alleged that the union has continued to delay scheduling further meetings, claiming it is “neither constructive nor a good faith effort.”
“We have repeatedly invited union representatives to return to the bargaining table so discussions can continue, and we remain ready and willing to meet to address the issues that separate the parties and work toward a mutually acceptable agreement,” the company said in the Wednesday statement.