UAL777;
You are either lying or misinformed. In oder to have the contracts abrogated the company must first try to negotiate with the union. This does not mean take it or leave it. The companies proposal must be reasnonable and be rejected before the judge throws it out. 6 years is unreasonable. Check you facts first, I have .
11 U.S.C. 1113 permits a debtor/employer(ER) who has entered into a collective bargaining agreement (CBA) to have provisions of that CBA modified or rejected under very specific circumstances. The proceedure is breifly outlined as follows;
1. The ER must first make a proposal for modification of employee benefits and protections to the Union. This proposal must be made BEFORE the ER makes an application to the Court for rejection.The proposed changes must be necessary modifications which will permit reorginazation of the debtor and to permit all affected parties to be treated fairly.
2. The Er must provide the Union with relevant information necessary for the Unions evaluation of the proposal.
3. The debtor or the bankruptcy trustee must meet with the Union in good faith, to negotiate mutually satisfactory modifications, from the period between submission of the proposal by the ER, until a hearing on the ER's motion for rejection of the CBA is held.
4. The court may approve the ER's application for rejection ONLY IF; (1) the debtor or trustee made the proposal prior to the hearing, (2) the union has refused to accept the proposal without good cause and (3) the balance of the equities clearly favors rejection.
This is how rejection works;
1. The Judge can permit the Debtor to reject the entire CBA- the ER can behave as though the CBA does not exist, but only after going through the steps outlined above.
2. The right to permit rejection is given in the bankruptcy code at 11 U.S.C 1113.
3. The judge cannot dictate new terms-the court will simply permit the rejection or the parties can agree to modifications.
4. If the court permits rejection, the rejection stands for as long as the CBA is in effect.
5. Because the CBA is treated as though it does not exist, the workers are free to strike, just as they would be if there had never been a CBA.
6. With regard to the changes, the most significant change to the bankruptcy code was this provision. Prior to this rule's implementation, the ER could reject the CBA without a proposal to the Union. Under the old rule, the automatic stay would stop a union from bringing any action against the employer as soon as the ER filed for C-11. Now 11 U.S.C. 1113 (f) has been interpreted by the courts to prevent an ER from using the automatic stay to unilaterally void CBAs because the section does not allow any provision of the bankruptcy code (including 362-The Automatic Stay) to be interpreted as permitting a trustee to unilaterally terminate/alter the provisions of a CBA without going through the steps for rejection.
To sum it up, after going into C-11 the company has to meet with the union and negotiate in good faith. The concessions must be necissary. There is no way , given the history of this industry that it can be argued that a SIX year contract is necissary. Its completely unreasonable. Most contracts throughout the industries history have been for three years or less. In the early nineties the airlines were hurting and many Unions gave long term concessions only to find that the industry made an extremely strong recovery while its employees still languished under terms that were negotiated in the bad times. Given the current proposal the judge most likely will not reject the agreement. The company would have to modify it to make it less onerous upon the workers first.
You are either lying or misinformed. In oder to have the contracts abrogated the company must first try to negotiate with the union. This does not mean take it or leave it. The companies proposal must be reasnonable and be rejected before the judge throws it out. 6 years is unreasonable. Check you facts first, I have .
11 U.S.C. 1113 permits a debtor/employer(ER) who has entered into a collective bargaining agreement (CBA) to have provisions of that CBA modified or rejected under very specific circumstances. The proceedure is breifly outlined as follows;
1. The ER must first make a proposal for modification of employee benefits and protections to the Union. This proposal must be made BEFORE the ER makes an application to the Court for rejection.The proposed changes must be necessary modifications which will permit reorginazation of the debtor and to permit all affected parties to be treated fairly.
2. The Er must provide the Union with relevant information necessary for the Unions evaluation of the proposal.
3. The debtor or the bankruptcy trustee must meet with the Union in good faith, to negotiate mutually satisfactory modifications, from the period between submission of the proposal by the ER, until a hearing on the ER's motion for rejection of the CBA is held.
4. The court may approve the ER's application for rejection ONLY IF; (1) the debtor or trustee made the proposal prior to the hearing, (2) the union has refused to accept the proposal without good cause and (3) the balance of the equities clearly favors rejection.
This is how rejection works;
1. The Judge can permit the Debtor to reject the entire CBA- the ER can behave as though the CBA does not exist, but only after going through the steps outlined above.
2. The right to permit rejection is given in the bankruptcy code at 11 U.S.C 1113.
3. The judge cannot dictate new terms-the court will simply permit the rejection or the parties can agree to modifications.
4. If the court permits rejection, the rejection stands for as long as the CBA is in effect.
5. Because the CBA is treated as though it does not exist, the workers are free to strike, just as they would be if there had never been a CBA.
6. With regard to the changes, the most significant change to the bankruptcy code was this provision. Prior to this rule's implementation, the ER could reject the CBA without a proposal to the Union. Under the old rule, the automatic stay would stop a union from bringing any action against the employer as soon as the ER filed for C-11. Now 11 U.S.C. 1113 (f) has been interpreted by the courts to prevent an ER from using the automatic stay to unilaterally void CBAs because the section does not allow any provision of the bankruptcy code (including 362-The Automatic Stay) to be interpreted as permitting a trustee to unilaterally terminate/alter the provisions of a CBA without going through the steps for rejection.
To sum it up, after going into C-11 the company has to meet with the union and negotiate in good faith. The concessions must be necissary. There is no way , given the history of this industry that it can be argued that a SIX year contract is necissary. Its completely unreasonable. Most contracts throughout the industries history have been for three years or less. In the early nineties the airlines were hurting and many Unions gave long term concessions only to find that the industry made an extremely strong recovery while its employees still languished under terms that were negotiated in the bad times. Given the current proposal the judge most likely will not reject the agreement. The company would have to modify it to make it less onerous upon the workers first.
11 PM atabuy wrote: 
57am?
