June 3, 1997 CONGRESSIONAL RECORD — SENATE S5219 for up to 10 minutes as if in morning released by the Union Bank and the po- In the letter the prosecutor says, ba- business. lice authorities. sically, that ‘‘we intend,’’ and I quote, The PRESIDING OFFICER. Without I have just recently written to the ‘‘to bring a charge’’ against Mr. Meili. objection, it is so ordered. local prosecutor, and in that letter of They are going to charge Mr. Meili Mr. D’AMATO. Mr. President, first of May 15 I said, basically, are you still with criminal conduct, not the bank all, let me thank Senator HUTCHINSON threatening to prosecute Mr. Meili? I which shredded the records. And they for being so gracious in permitting me ask that the full text of that letter be want Mr. Meili to come back to Swit- this opportunity because I know he had printed in the RECORD. zerland for another interview. Mr. asked to speak earlier. There being no objection, the letter Meili’s lawyer, Mr. Bosonnet, writing f was ordered to be printed in the to a lawyer who is representing Mr. RECORD, as follows: Meili because Mr. Meili is here in hid- VIOLATION OF SWISS BANK U.S. SENATE, COMMITTEE ON BANK- ing, has advised him not to come back SECRECY LAWS ING, HOUSING, AND URBAN AF- to Switzerland because he would face Mr. D’AMATO. Mr. President, I rise FAIRS, not only persecution but prosecution Washington, DC, May 15, 1997. today to discuss the case of Christoph and harassment. Mr. PETER COSANDEY, Meili. He is a heroic young Swiss bank Now, Mr. President, it is one thing guard, 27 years of age, who stumbled on District Attorney of the Canton Zurich, Zurich, Switzerland. for the Swiss Government to say, ‘‘Do a situation that was rather remark- DEAR MR. COSANDEY: This letter concerns not blame us for what took place 50 able. It was the shredding this past Mr. Christoph Meili, the former bank secu- years ago’’, and another thing to say, January of historical documents at rity guard who discovered the shredding of ‘‘Well, what we are doing today is cor- Union Bank of Switzerland, one of Holocaust-era documents at the Union Bank rect.’’ I say to the Swiss Government Switzerland’s largest, most prestigious of Switzerland in Zurich and who is cur- and to the Swiss banks, do not shred banks. He noted that these records rently being investigated by your office for violation of Swiss bank secrecy laws. the truth. Tell the truth. Mr. Meili dated during the period of the Holo- As you are probably aware Mr. Meili has should not be facing criminal charges caust, prior to and during World War recently testified before the Senate Banking for coming forward. II, and he knew that the Government Committee in Washington, D.C., in reference Let me share with you, if I might, of Switzerland had just passed legisla- to his discovery of the shredding of valuable what I learned just before we ad- tion prohibiting destruction of just archival documents by the Union Bank of journed. And, by the way, I commend these types of records. He took a hand- Switzerland. He told of his firing by his em- my colleagues in the Senate for passing ful of these records and brought them ployer Wache A.G., even after I received per- sonal assurances from Ambassador Thomas the bill which will give to Mr. Meili re- to the Jewish Cultural Society. They Borer that this would not take place. Mr. lief, a private relief bill which will per- then passed them on to the police— Meili stated that this firing has left him mit him and his family to reside in this never went to the media. The records penniless and has placed terrible financial country legally and to be able to be were never copied. They were never in strains upon himself and his family. As you gainfully employed. That legislation is any way compromised. are undoubtedly aware Mr. Meili has a wife now pending action in the House. But For his bravery, for standing up and and two young children that he must now let me say to you that I think all of us doing the right thing, he has been fired somehow support. Mr. Meili also testified of his hours of in- were moved when we heard the testi- from his job. In his termination letter, tense interrogation by Swiss officials and mony of Mr. Meili. Mr. Meile was told that although his their silence as to the status of their inves- I said to him, ‘‘Christoph, why did conduct was ‘‘classified as ethical and tigation. Mr. Meili also testified that Swiss you do this? Why did you take these moral in certain circles,’’ his actions officials have yet to provide him with copies documents and report and expose what were unjustifiable from the perspective of the archival documents that he saved was going on?’’ of labor law. from destruction. Mr. Meili also stated that Do you know what he said? He said, Can you imagine that. He saw the he fears for his life and the life of his wife ‘‘Two months earlier I saw ‘Schindler’s and infant children. He stated that both he law being violated. He knew that these and the members of his family have received List,’ and I knew that I must be doing documents were of import, and he was numerous threats against their lives. His something, and I could not just stand fired. Here is a noble young man who children have been threatened with kidnap- by and let this take place.’’ risked everything, a humble man, a ing and he has been told that ‘‘their ransoms So I say to my colleagues in the Sen- high school education, with a wife and could be paid from monies belonging to the ate and in the House, can we do any- two children. What happened? He is Jewish community.’’ This is unconscionable. thing less than to ask for speedy pas- called a traitor to his country. His wife He also feels that he has been ‘‘black-list- sage of that legislation that will give ed’’ by the Swiss banking community and Christoph the right to work and live and children are threatened. Hundreds will have great difficulty in securing gainful of letters pour in. employment in Switzerland. Mr. Meili here in this great country, to tell him Let me read one letter, and it is a should be treated as a hero not as a criminal. that we do appreciate his standing up tough letter. And I have seen many of It is within this light that I now ask you to for truth and justice, and also to let these: end your harassment of Mr. Meili. You do the Swiss Government know in the Meile, you bastard. The secret numbered both your office, Mr. Meili and the citizens strongest terms that we are not going account won’t do you any good. You are a of Switzerland a great injustice in continu- to stand by and do business as usual. son of a bitch, a traitor to your country. It ing your present course of action. The Union We are not going to allow them to har- will cost you your life. Your children are in Bank of Switzerland should be the subject of ass this young man, because this pros- danger. We will kidnap them and make sure your investigation, not Mr. Meili. In closing, I would also be most interested ecutor is way off base. If anything, he that you pay the ransom with your Jewish should be investigating the destruction money. We’ll finish you off. We’re going to in finding out what action your office has wipe out the entire Meile clan. Traitors like taken against Mr. Erwin Hagenmuller, the of those historical documents by the you are not wanted. If you have any courage, Archivist for the Union Bank of Switzerland Union Bank, documents that existed in you’ll kill yourself or emigrate into the who ordered the shredding of archival docu- some cases for more than 60 years. Sud- promised land to your Jewish friends—to Is- ments even though recently enacted Swiss denly they say they began to destroy rael or the U.S. You won’t live much longer law prohibits such willful destruction. Was a them by accident. I do not believe it. It in Switzerland if you don’t kill yourself. report filed by the Union Bank of Switzer- land in reference to Mr. Hagenmuller’s ac- also raises in this Senator’s mind the That is the kind of thing he has been tions? If so, could a copy of the report be for- question of how historical documents subjected to. This brave, courageous warded to the Committee for review? that have been stored in warehouses and righteous young man finds himself Respectfully, belonging to some of the banking insti- terminated from employment, ALFONSE M. D’AMATO, tutions mysteriously have caught on blacklisted. Chairman. fire. I’m talking about four different The chairman of the board of Union Mr. D’AMATO. I did not receive a di- warehouses in this country, the latest Bank, Mr. Studer says that he thinks rect reply, but let me tell you what I being in New Jersey, concerning docu- Mr. Meili did this to get money. Now, did get just yesterday. I received a let- ments that belonged to Credit Suisse. let me say something. Mr. Meili did not ter from Mr. Meile’s attorney, Marcel I wonder how it is that shredding go to the press. This information was Bosonnet. takes place after 60 years by accident. S5220 CONGRESSIONAL RECORD — SENATE June 3, 1997 When a young bank guard comes for- ancing family and work. But some have employer’s bankruptcy, the worker’s ward and says, ‘‘Look, this is not questioned whether workers’ rights to right to be paid will be protected. right,’’ he, then, becomes the victim be paid by companies that declare That’s pro-worker and pro-family and and becomes the criminal. bankruptcy might inadvertently be af- it’s just plain fair. What we seek is justice and a full ac- fected by S. 4. My amendment will The second thing that my amend- counting. And certainly fair treatment make sure that this will not happen ment will do is insert comptime and of this heroic young man. and that workers will be fully pro- flexible credit time in the list of pre- Mr. President, I yield the floor. tected. ferred debts alongside unpaid wages. f S. 4 is a very important bill. We all That means that unused comptime and know the story. Over the past decade unused flexible credit time will have FAMILY FRIENDLY WORKPLACE or so, wages have been flat and the tax the same preferred status as unpaid ACT burden seems to just grow and grow. As wages. The Senate continued with the con- both mothers and fathers around the Mr. President, I hope that every sideration of the bill. country have had to work outside the Member of this body will support my The PRESIDING OFFICER. The Sen- home and have had to work longer and amendment. It is pro-worker and it ator from Iowa. longer hours, they have less time to makes sure that the promise of Mr. GRASSLEY. Mr. President, are spend with each other and with their comptime and flexible credit time will we on the legislation so I can offer an families. This leads to a decrease in the not turn into an empty promise. As we amendment? quality of family life. all know, most employers are honest The PRESIDING OFFICER. Yes, we And with all the assaults we have on and law abiding and will go into bank- are; pending is S. 4. families these days—increased drug use ruptcy only as a last resort. But when by teens, excessive violence and sex a company has to go into bankruptcy, AMENDMENT NO. 253 coming from Hollywood to name a we should take extra care here in Con- (Purpose: To provide protections in bank- few—Congress needs to give serious ruptcy proceedings for claims relating to gress to see to it that workers are compensatory time off and flexible work consideration to finding ways to pro- treated fairly. We should also make credit hours) tect and stabilize families. The Senator sure that workers are protected from Mr. GRASSLEY. Mr. President, from Missouri is to be commended for the small number of dishonest compa- under the unanimous-consent agree- taking such a progressive stance on nies that might try to use a loophole to ment my amendment on bankruptcy to this important issue. cheat workers out of what they’ve S. 4 will give employers the chance to this legislation has been filed. I would earned. offer families the choice of working like to take that amendment up at this My amendment simply ensures that harder and earning overtime pay or point. If it is necessary to read the unused comptime and unused flexible getting some time off in exchange for amendment, I would like to have it credit time will be as protected as un- working more. That makes good com- read. paid wages. Workers who choose to mon sense and will expand the range of The PRESIDING OFFICER. The take the time to be with their families choices that working families can clerk will report. should not be disadvantaged should make. The legislative clerk read as follows: their company have to declare bank- Now, I chair the Subcommittee on ruptcy. The Senator from Iowa [Mr. GRASSLEY] Administrative Oversight and the proposes an amendment numbered 253. Mr. President, I hope this amend- Courts, which has primary responsibil- ment passes overwhelmingly. Mr. GRASSLEY. Mr. President, I ask ity for bankruptcy policy in the Sen- I would like to also suggest that as a unanimous consent that reading of the ate. I am offering an amendment today concession to the Members of the other amendment be dispensed with. to make sure that unused comptime side of the aisle, I have also raised the The PRESIDING OFFICER. Without and unused flexible credit time will be dollar amount referred to earlier from objection, it is so ordered. protected when an employer declares $4,000 up to $6,000 as well. The amendment is as follows: bankruptcy. Under current law, unpaid I yield the floor. On page 28, after line 16, insert the follow- wages up to $4,000 are given a preferred Mr. ASHCROFT. Will the Senator ing: status if earned within 90 days prior to from Iowa yield for a question? (d) PROTECTIONS FOR CLAIMS RELATING TO COMPENSATORY TIME OFF AND FLEXIBLE a company declaring bankruptucy. Mr. GRASSLEY. Yes. CREDIT HOURS IN BANKRUPTCY PROCEED- Under the Bankruptcy Code, secured Mr. ASHCROFT. I am very pleased to INGS.—Section 507(a)(3) of title 11, United creditors are paid and then the costs of have the Senator come to the floor and States Code, is amended— administering the bankruptcy estate offer this amendment. I would like to (1) by striking ‘‘$4,000’’ and inserting will be paid. After that—ahead of all clarify the intent of my colleague. I ‘‘$6,000’’; the other creditors—workers’ wages think I understand it. (2) by striking ‘‘for—’’ and inserting the will be paid subject to those limita- If the comptime accumulated earn- following: ‘‘provided that all accrued com- tions I just described. ings, which might either be paid off at pensatory time (as defined in section 7 of the Fair Labor Standards Act of 1938 (29 U.S.C. I believe that comptime and flexible the end of the year as comptime that 207) or accrued flexible credit hours (as de- credit time should be protected in the gets cashed out or might be taken as fined in section 13(A) of the Fair Labor same way as unpaid wages because un- comptime, as time off—if that is older Standards Act of 1938) shall be deemed to used comptime and unused flexible than 90 days old, under the current law have been earned within 90 days before the credit time are essentially unpaid it might not have all the protections in date of the filing of the petition or the date wages. bankruptcy that normal wages would of the cessation of the debtor’s business, So, my amendment does two things. have; is that correct? whichever occurs first, for—’’; and First, my amendment provides that all Mr. GRASSLEY. The Senator from (3) in subparagraph (A), by inserting before unused comptime and unused flexible the semicolon the following: ‘‘or the value of Missouri has the existing law correct. unused, accrued compensatory time (as de- credit time will be deemed to have That is right. fined in section 7 of the Fair Labor Stand- been earned within 90 days prior to the Mr. ASHCROFT. So what the Senator ards Act of 1938 (29 U.S.C. 207)) or the value employer filing for bankruptcy. This is doing is making sure that everything of unused, accrued flexible credit hours (as will prevent a dishonest employer who that would be in a comptime or flex- defined in section 13A of the Fair Labor wants to cheat workers from arguing time bank in terms of hours would be Standards Act of 1938)’’. that he doesn’t have to pay the value protected at the highest level of pro- Mr. GRASSLEY. Mr. President, I rise of unused comptime or unused flexible tection as recently earned wages under today to offer a bankruptcy amend- credit time because they might have the bankruptcy law? ment to resolve an important question been earned over a period of a year or Mr. GRASSLEY. Yes. which has been raised regarding S. 4. even longer. In other words, by having Mr. ASHCROFT. I think that is a This is a bill which will provide Ameri- the law deem all unused comptime and clear improvement to this measure, in ca’s working families with some much- unused flexible credit time as having terms of protecting the interests of needed relief from the demands of bal- been earned within 90 days prior to the workers. I thank the Senator from