USA320Pilot said:
The court will not side with labor and will protect the debtor and creditors, especially with the Bush Administration and the ATSB involved in the process.
As a lawyer, I will never "guarantee" how a court will rule, or how a jury will find. Therefore, your guarantee that a bankruptcy court judge "will not side with labor," USA320Pilot, is a little bit disingenuous. Very often, the fact-finder is persuaded by the darndest things--the indignance of a witness, or an obscure fact that doesnt make sense in the context of the entire testimony. There are also additional factors that play into the mix (i.e., the case could be assigned to a pro-labor bankruptcy judge).
There isn't a lot of case law on section 1113 motions to reject collective bargaining agreements. There are some cases that have refused to reject CBA's. It also seems to me that the section was devised to protect the integrity of collective bargaining agreements by allowing the rejection of the agreements only as a last resort "as necessary" to allow a debtor to successfully organize. I keep looking for the remaining $700 million in costs the company says it needs to reorganize (where are they)? I would think that any union defending against a section 1113 motion would focus on (1) where these other cost savings are coming from since they are represented to be "non-labor." If the company hasn't implemented these cost savings that are in their control, then how can they look to reject the labor agreements "as necessary." If the company contends that the savings can only be implemented after rejection of the collective bargaining agreements, then the unions will need to focus upon cost-savings that can be achieved under the existing agreements (many of you have claimed that these cost-savings exist). I also wonder whether cost-savings contingent upon labor concessions aren't, in reality, an additional labor concession (just an undeveloped theory, however).
I would think that both sides have a lot at risk by allowing the court to decide, only because it's an all or nothing proposition. The side with the more persuasive facts is the one that will likely prevail.
And just before anyone gets on my case, too much, on October 22, 2003, I wrongly predicted that Judge Cindrich's preliminary injunction against the Airbus outsourcing would be upheld on appeal, which, I guess, in a roundabout way, proves my point here.