- Banned
- #1
November 12, 2004
US Airways Files 1113© and 1114 Motions
Dear Sisters and Brothers,
US Airways today filed in US bankruptcy court its section 1113© asking the court to abrogate its labor agreements and an 1114 motion modify retiree benefits.
Today’s filing sets in motion a process defined by bankruptcy law that calls for continued discussions between the IAM and US Airways. It also established a timeline for those discussions to take place. During this time, the contract remains in effect and unchanged except for the temporary modifications previously ordered by the court, which remain in place until February 15, 2005.
IAM representatives and attorneys will remain engaged at every step of the process in an effort to reach a consensual agreement that respects our members’ sacrifices and dedication to the future of this airline.
By law, a hearing on the 1113© petition is to be held within fourteen days from the date of the filing of the application. However, the court may extend the time for the commencement of such hearing for a period not exceeding seven days.
The court is required to rule on the application for rejection within thirty days after the date of the commencement of the hearing. However, the court may extend the time for making a ruling for an additional period as the company and the Union may agree to. If the court does not rule on the application within thirty days after the date of the commencement of the hearing, or within such additional time as the company and union may agree to, the company may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court.
In 1113© applications, the judge has only two options when making a ruling; reject the company’s application and leave the labor contract intact, or approve the application and terminate the labor agreement entirely. If the judge elects to abrogate the agreement, US Airways would then be free to impose wages, work rules and benefits as they see fit. The judge cannot impose permanent contract terms on the parties.
Our 1114 committees are also continuing discussions with US Airways to resolve retiree benefit issues.
We will advise of any new developments as they occur.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge #142
Randy Canale
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge #141
US Airways Files 1113© and 1114 Motions
Dear Sisters and Brothers,
US Airways today filed in US bankruptcy court its section 1113© asking the court to abrogate its labor agreements and an 1114 motion modify retiree benefits.
Today’s filing sets in motion a process defined by bankruptcy law that calls for continued discussions between the IAM and US Airways. It also established a timeline for those discussions to take place. During this time, the contract remains in effect and unchanged except for the temporary modifications previously ordered by the court, which remain in place until February 15, 2005.
IAM representatives and attorneys will remain engaged at every step of the process in an effort to reach a consensual agreement that respects our members’ sacrifices and dedication to the future of this airline.
By law, a hearing on the 1113© petition is to be held within fourteen days from the date of the filing of the application. However, the court may extend the time for the commencement of such hearing for a period not exceeding seven days.
The court is required to rule on the application for rejection within thirty days after the date of the commencement of the hearing. However, the court may extend the time for making a ruling for an additional period as the company and the Union may agree to. If the court does not rule on the application within thirty days after the date of the commencement of the hearing, or within such additional time as the company and union may agree to, the company may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court.
In 1113© applications, the judge has only two options when making a ruling; reject the company’s application and leave the labor contract intact, or approve the application and terminate the labor agreement entirely. If the judge elects to abrogate the agreement, US Airways would then be free to impose wages, work rules and benefits as they see fit. The judge cannot impose permanent contract terms on the parties.
Our 1114 committees are also continuing discussions with US Airways to resolve retiree benefit issues.
We will advise of any new developments as they occur.
Sincerely and fraternally,
William O'Driscoll
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge #142
Randy Canale
PRESIDENT-DIRECTING
GENERAL CHAIRMAN
District Lodge #141