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On 4/9/2003 9:25:48 AM siucstudent wrote:
Regarding the TWU GroundWorkers T/A:
It was written to be voted down.
SIUC Student
Carbondale, IL
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I disagree. Management teams do not want to take companies into Chapter 11. First, it is expensive. The process is good for Bankruptcy lawyers, but it diverts cash to fees that can better be used for operations. Also, it is harder and more expensive to access capital in Chapter 11. Not to mention that passengers off book because they are afraid of a failure of the airline or fear that maintenance will be deferred. All of these factors and more mean that there is a financial disincentive for management to go into bankruptcy.
Second, taking a company into bankruptcy will mean a loss of control for current management. While they may not lose their jobs, they do lose control of the company. They have to seek approval for many of their decisions. Creditor''s commitees and a judge examines everything that they do.
Finally, Chapter 11 is about the creditors. The role of the judge and the process is to safeguard the assets of the creditors. If it makes more sense to liquidate, the judge will liquidate.
It is doubtful that management wants to take AA into Chapter 11. These T/A''s were the result of a compromise that weighed labor''s needs, management''s needs, and the impact of the economy on AA''s tattered balance sheet. I doubt that anyone got all that they wanted.
As you learn about labor management relations, never forget the impact of economics.
To take the position that AA employees should stand their ground when standing thier ground will cost more jobs is irresponsible. It sounds like you have fallen under the influence of an ideologue. Labor today is different than labor in the 1950''s. Maybe it is this disconnect with economic realities that has caused labors decline.
In the real world in this economy, you do what is necessary to survive.
No, these T/A''s were not designed to be voted down. They were designed to save a company and ultimately jobs.