usfliboi said:
Simply NOT TRUE!!!!!!!! Your correct in the sense of doing just that "only" However CAL was a combo of many higher paid jobs and before it was all over with , the entire system was gutted including employee work rules and pay! For the most part they didnt have a choice.
When Frank Lorenzo took CAL into BK the first time there was no section 1113 protections.
Tell all the Facts:
With one swipe of a pen, CAL's unionized employees no longer had a contract, work rules, gaurented pay and numerous other things. The union certification was voided and Lorenzo broke all the unions and all the employees.
One year later Congress enacted sections 1113 forcing the company to negoitate instead of being able to use carte blanche and wipe out their unions and contracts.
So the employees did not save CAL, Lorenzo raped them and CAL had to go thru BK again.
Some FYI:
One item 1113 letter, which refers to the section of code that ensures that a company negotiates with the union before they seek abrogation of the labor agreement. When a company seeks protection, the agreement remains in effect. When a union negotiates an 1113 letter it secures an agreement with the company showing that the company will not seek further cuts from labor. To this date, no company that has had an 1113 letter negotiated has ever asked the court to abrogate it.
The debtor in possession must have made a proposal to the union.
The proposal must be based upon the most complete and reliable information available at the time of the proposal.
The modification must be necessary to permit reorganization.
The modification must provide that all affected parties be treated fairly and equitably.
The debtor must provide the union with such relevant information as is necessary to evaluate the proposal.
The debtor must have met with the collective bargaining representative at the reasonable times subsequent to making the proposal.
The debtor must have negotiated with the union concerning the proposal in good faith.
The union must have refused to accept the proposal with good cause.
The balance of the equities must clearly favor rejection of the agreement.