Can The Employee Groups Ask For Trustee ?

[Reservation Agent]

If the company has basically admitted that they did a poor job after emerging from bankcruptcy the last time in the pre-motion briefs , and are asking the court for permission to re-organize again....Can the labor groups get together and petition the judge to have a court appointed and skilled airline executive be selected to run the company....Thru this bankruptcy....

Does anybody know if this is possible...

Does this bankruptcy mean the the stock is now worthless and RSA has lost their 37 percent investment?

 

[FWAAA]

Sure, the labor groups could petition for a trustee, but the odds of success are about zero. Management didn't admit poor management in the petitions.

The stock? Not worthless until canceled (if it is canceled) upon confirmation of a new POR. It will trade today, probably between 50 cents and $1.

UAL's stock has traded between about 50 cents and about $2 since it filed in Dec 2002. Won't be canceled until the POR is confirmed.

Has RSA's investment been reduced to zero? Not necessarily.

 

[Reservation Agent]

I have heard that if a signed union contract is abrogated, that the union members have the ability to conduct a strike...Seems to me that Eastern Airlines mechanics went out and the pilots wouldn't cross thier picket lines....

And, if a contract is abrogated that the airline can't come out of a bankruptcy, unless they have a new agreement.. or abide by the old one with the union... Is this true?

 

[robbedagain]

could the unions at least proof or try to show proof of mismangement? i for one would love to see a whole new team replace this inept bunch of clowns who cant run the airline the way it should.

 

[DCAflyer]

And, if a contract is abrogated that the airline can't come out of a bankruptcy, unless they have a new agreement.. or abide by the old one with the union... Is this true?

[post="179314"][/post]​

Absolutely not true. The bankruptcy court couldn't care less whether there are labor contracts in existence. Once the labor contracts are abrogated, if that does in fact happen, employment becomes "at will" and the company is free to hire and fire it sees fit until a new labor contact is negotiated. I suspect that if this happens, the senior employees will be furloughed and furlougees will come be recalled. But I really don't think it will come to this.

What will likely happen is something like this:

Step 1. Company will petition the court for abrogation of labor contracts.

Step 2. The parties will submit briefs for/against abrogation.

Step 3. Company and unions will negotiate like hell before a decision is reached.

Step 4. For those unions which don't reach an agreement with the company, contacts will more likely than not be abrogated with advice to the parties from the judge that they should continue negotiating.

Step 5. If agreements still are not reached, the company will begin taking self-help... meaning tipping the balance in favor of lower paid junior employees.

 

[Reservation Agent]

ok