When Retailers Go Bust, Workers Often Get Nothing

by MR Magazine Staff

U.S. Rep. Tim Ryan, D-Ohio, and U.S. Sen. Joe Manchin, D-West Virginia, know first-hand the financial devastation their constituents face as factories and coal mines shut down in their respective states, thanks to a rash of corporate bankruptcies in the manufacturing and energy industries. That scene is now playing out in malls and on Main Streets across the country as retail chains close shop. And it’s throwing tens of thousands of workers out of jobs without so much as a few weeks pay. “We’ve seen this in northeast Ohio for 30 years — companies go bankrupt, almost everybody gets paid, but workers are at the back of the line. It’s been the case as long as I can remember,” Ryan told CBS MoneyWatch. “The issue of retirement security is a huge issue, the economy clearly isn’t working for workers.” Ryan and Manchin will later this month or in early April reintroduce legislation — Ryan in the House and Manchin in the Senate — to prioritize workers’ claims in corporate bankruptcies. Read more at CBS News.