Don''t Do It

[will fix for food]

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"It's a new ball game will." UA or their trustee would request for a rejection of all contract and it's up to the judge whether to accept or deny that request, after he looks at the current condition of the company of course. Check out my post about "rejection of collective bargaining agreement" on 11/26.
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[/blockquote]

I/m no lawyer, but after reading Sec. 1113 it seems that the judge can only legally abrogate the CBA/s of those employees that "refused to accept such proposal without good cause"[1113©(2)]. Since all the employee groups have accepted a restructuring proposal except the mechanics, they are immune to abrogation.
In essence that means the mechanics are the only ones eligible to have their contract written by the bankruptcy judge.

It appears that their only recourse is to ratify a restructuring plan in some form, or to make a successful plea before the judge to leave the CBA unmodified [1113(d)(1)].


Section 1113 appears to favor the DIP or Trustee in the way it is written. My question is, is [1113(e)] a provision that allows the trustee to implement short term changes in the CBA pending the court's ruling? I wonder because of the last sentence that says "The implementation of such interim changes shall not render the application for rejection moot".


Of course, like I said, I am no lawyer, so I don/t know if my interpretation is correct.

 

[UAL777flyer]

Whether they all truly understand the ramifications of their "no" vote (which I doubt) or not is not the point. The point is that the mechanics appear intent on sabotaging any effort at restructuring this airline with their participation, soley to exact some form of revenge over the lousy leadership this airline has endured for the last several years. This is their chance at payback and they're loving every minute of it, despite the fact that it pushes them all closer to being out on the street for good than the very ERP they just voted on.

Deep down, I doubt anyone is stupid enough to think the job market is very robust these days. Sure, there will always be those fortunate people who manage to land on their feet and better themselves. But they are in the minority. Most will suffer as they compete for few jobs among thousands with the same qualifications.

But at this point, it's moot in my opinion. Bankruptcy is coming. I don't see the mechanics voting in favor of the same deal and I don't see the ATSB giving us a loan. So, my view is that Ch. 11 will be coming probably by next weekend barring a major development. And in that environment, we'll all see first hand how much uglier things will be. Suffice it to say that these ERP's are the best we all will get. In bankruptcy, the company's leverage goes up and the unions leverage goes down.