Labor unions and several Democratic lawmakers on Tuesday urged passage of legislation that would require incoming contractors to temporarily retain workers when service contracts change hands, arguing it would prevent abrupt job losses.
Labor unions and several Democratic lawmakers on Tuesday urged passage of legislation that would require incoming contractors to temporarily retain workers when service contracts change hands, arguing it would prevent abrupt job losses.
The proposal, included in House Bill 5003 and introduced as Senate Bill 358, would require new building service contractors to retain most existing employees for at least 90 days after a contract change and limit terminations during that period to “just cause.” Employers also would have to provide at least 15 days’ notice before a transition.
Supporters, including 32BJ SEIU, 1199 SEIU and UNITE HERE, say the measure would protect janitors, security guards, airport workers and certain health care and food service employees when property owners switch contractors or sell buildings.
Connecticut State Treasurer Erick Russell joined Sen. Julie Kushner (D-Danbury) and Rep. Manny Sanchez ( D-New Britain) — co-chairs of the Labor and Public Employees Committee — in backing the bill during a Tuesday press conference at the Capitol.
But the Connecticut Business & Industry Association, the state’s largest business organization, is opposing the bill, arguing it would significantly expand Connecticut’s existing worker retention law beyond Bradley International Airport to a broad range of sectors, including multifamily housing, office buildings, warehouses, hospitals, utilities and schools.
In written testimony to the Labor and Public Employees Committee, CBIA said the measure would increase liability for contractors, reduce operational flexibility and discourage companies from bidding on service contracts.
The group also raised concerns about expanded enforcement authority for the state labor commissioner, including potential back pay awards, reinstatement orders and civil penalties of up to $500 per worker per day.
The bill is scheduled for a public hearing on Tuesday.
