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Renewing the
Call for Legislation
on Corporate Responsibility
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Business New Haven
12/29/1997
By: Jennifer M. Gangloff
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BNH spoke with State Sen. Edith G. Prague (D-19) of Columbia, considered one of the leading proponents of corporate responsibility legislation. She is also senate chairperson of the Labor & Public Employees Committee. The corporate responsibility legislation, which failed last session as an amendment, would hold certain companies that receive state grants, loans, tax breaks and similar aid to specified standards of “responsibility” to employees regarding health-care benefits, minimum wage, vacations and sick time, for instance.
Why should the state assume a role in legislating corporate responsibility? Doesn't this presume companies are treating their employees irresponsibly?
Working people out there are really being shoved around by corporate executives. CEOs are giving themselves big salaries and stock options and bonuses, and yet they don't hesitate to lay off workers. If these companies are going to use taxpayer money in any way to do business with the state of Connecticut, they have a responsibility to those people in their community who happen to be taxpayers.
What companies would be
regulated by the legislation?
We're not looking at the small business that comes to the state for a loan of $10,000 or $20,000. We're looking at the big boys that get huge breaks - millions and millions of dollars. Let's see what comes back in our survey. It may very well be when we draw up our legislation that we have $100,000 as the cutoff.
What survey is that?
The Labor Committee is doing its own survey of companies. We're asking what kinds of benefits they provide, the average wage, whether they've added workers or reduced jobs since 1995. The letters went out to 1,000 companies doing business with the state that received more than $10,000, including some out-of-state companies. We're operating on the fact that we need documented information
as to how companies that use state money are treating employees. We know for a fact that there are companies that are given big dollars that aren't giving health-care benefits.
Identify one of the companies.
I don't want to give any names.
What if the data don't support your cause?
If we find that companies are paying a living wage and offering health-care benefits and full-time jobs and decent sick-time benefits, we won't need any legislation.
Critics contend the legislation will hurt a company's ability to compete with companies that aren't subject to the same requirements.
Our point is not to chase businesses out of the state. Our purpose is to make employers aware of the value of their employees. And it might help the economy. Workers will become more productive if they go to a job where they are happier, have more benefits and are treated properly.
Has legislation similar to this been enacted elsewhere?
New Jersey and Boston have this type of legislation. New Haven has a living wage: If you do business with the city of New Haven, you have to pay $8.42 minimum.
Some critics say you can
champion this issue because you have few large companies in your district.
There are a couple larger companies in my district. But this
is not a parochial issue. This is a statewide issue.
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