goingboeing
Veteran
- Jan 30, 2004
- 584
- 1
Bear96 said:I'm curious as to how you want the laws to be changed?
Section 1113 was enacted to provide employees with considerably GREATER protections than they had otherwise. Before S 1113 was added to the Bankruptcy Code, an company could treat an employment contract like any other contract with a vendor-- once it filed for Ch.11, the employer could basically unilaterally choose to not honor the CBA.
S 1113 gives employees and their CBAs much GREATER protection than other, non-employment contracts in BK. Under S 1113, it is much harder for a company to not honor / reject CBAs than it is for it to reject other contracts. It was largely enacted to PROTECT EMPLOYEES. Otherwise, management would have instituted whatever changes it wanted to the moment it went into Ch.11. (And the unions would have been free to strike, and U would have shut down permanently, and y'all would have been without a job and paycheck for all those months now.)
So I am curious what you want to see the laws changed to? That a broke employer on the brink of going out of business NEVER be allowed to change ANY employment contracts at all, period, even if it means those continued high labor costs lead to the shut-down of the company once the $$$ runs out? Is that realistic, or even a good solution for employees?
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To avoid a long discourse I'll say that I agree with Robert Crandall and his views how chapter 11 has damaged the airline business.He recently testified before the Senate Aviation Sub-Committee and it was on C-Span.[Probably will be replayed several times].He preached it for years when he was CEO at AA and nothing was ever done to fix it.