ual747mech
Senior
- Nov 26, 2002
- 279
- 0
usairways_vote_NO said:
Right here numbnut, straight out of the Amfa9 website.
http://www.amfa9.org/waypoints/Documents/A...ection_1113.htm
Section 1113 threatens our contract
By Malik Miah
11/10/04
On November 5, UAL filed a “Notice of Motion†before the United States Bankruptcy Court. It states that United “respectfully requests that this Court conduct a scheduling conference at the November 19 Omnibus Hearing to discuss scheduling matters related to potential motions to reject the Company’s collective bargaining agreement under U.S.C. & 1113(c ).†Further, “United will use its best efforts to reach consensual resolutions with its unions. United thus seeks a schedule that allows the parties to negotiate as long as possible while also providing the relief United needs by mid-January.†AMFA received from management the “term sheet†of proposed changes to the CBA on November 4. The article below discusses the 1113© process and the article on the opposite page discusses the union’s initial response. -Editor
We face a challenging and trying reality. UAL management is using its financial crisis to open a new stage in the Chapter 11 process. The possibility now exists that the Court can decide to render our Collective Bargaining Agreement (CBA) null and void.
UAL management attributes its financial crisis is to declining revenue caused by internet ticketing, low cost carriers and rising fuel costs (see the fuel story on page 7 of this issue).
UAL aims to impose further significant changes in work rules and conditions of employment for mechanics and related employees under an ever-changing business plan. Its goals include the “likely termination†of the defined benefit pension plan, reduction in wages and other hard-earned benefits.
If the judge voids the contract, United is free--if it chooses--to impose wage, work rule and benefit changes as it sees fit.
AMFA will utilize all the resources at its disposal as it responds to this attack on our members and their families. This response will include national officers and professional staff.
In addition, to prepare for the battle ahead of us, we need to understand the bankruptcy 1113 process. It is unlike any other negotiation a union faces.
Our goal
The bankruptcy law allows a company operating under Chapter 11 to bring motions before the court to modify or radically alter legally binding contracts.
Jim Seitz, the AMFA UAL Airline Contract Administration Coordinator, in an October 18 letter to the membership, explained, “As AMFA UAL Representatives we have a responsibility to our membership to protect our contractual rights, and profession.†Section 1113 of the bankruptcy code provides a mechanism for a bankrupt company to seek contractual changes.
The company will state their position as to what contractual changes they believe are necessary and why. Our goal will be to evaluate the company position, preserve our members’ contractual rights and provide alternatives to concessions. It is the responsibility of both parties to negotiate in good faith and attempt to reach a consensual agreement during the 1113 process. If both sides cannot come to agreement, the bankruptcy judge will review negotiations to determine whether both sides have negotiated in good faith, whether there is good cause for the union’s refusal to accept the company’s proposal, and whether, on balance, the equities favor acceptance of the company’s proposal.
1113© and 1113(e)
Bankruptcy law contains two sections of the 1113 process. Section 1113© involves the “total rejection†of a CBA. Section 1113(e) enables temporary changes to the CBA.
Section 1113(e) allows a company to ask a judge to impose temporary wages, work rules and benefits if the continuation of a company’s business is at risk without immediate relief. If a judge imposes temporary modifications, they are not a matter for negotiations with the union and are not subject to member ratification. This is what we initially suffered in 2003 before the company filed a Section 1113©. The threat of an abrogation of the contract led a majority of members to vote to accept the current contract. That’s what occurred in October at US Airways when a 21% wage cut was imposed on the unions by the bankruptcy court.
On the other hand, the negotiations required under section 1113© aim to achieve a permanent solution. The 1113© negotiations would continue even if 1113(e) temporary modifications were imposed. The 1113© process, and the application for a complete rejection of the contract, would still go forward. The temporary modification would only be in effect until the judge rules on the application to reject the CBA, or permanent modifications to the agreement are negotiated, ratified by the membership and approved by the bankruptcy judge.
Judge as final arbiter
In an 1113© application the judge has several options when making a ruling. He can reject the company’s application and leave the labor contract intact. He can approve the application and terminate the labor agreement completely. Or, he can listen to the arguments of the company and union at the court hearing and instruct the two parties to go back to the bargaining table.
If the judge voids the contract, United is free--if it chooses--to impose wage, work rule and benefit changes as it sees fit. The Association likewise is free to act in our best interests. It does not mean necessarily a strike or any specific action by the union. It simply indicates that the crisis is such that neither the union nor management can agree to work together to move the airline forward.
Section 1113 is fast tracked
The short timeline of the 1113 process increases the threat posed to our interests. Unlike the slower paced normal contract opener under Section 6 of the Railway Labor Act, the bankruptcy process is fast tracked. If no consensual agreement is reached between the company and union within the allotted time, the threat of the judge accepting the company’s motion hangs over our heads.
While the end of the process appears bleak, it is still a process. The union negotiators must keep the members informed. Your input must not only be at the decisive final vote but also during the talks as they unfold. Stay informed. Attend a business meeting, monitor the union bulletin boards, and visit Way Points online at www.amfa9.org/waypoints. The site will be updated as events unfold.
Malik Miah, UAL Airline Representative and Editor of Way Points
Now, does this article clearly indicates we can strike?
The Association likewise is free to act in our best interests. It does not mean necessarily a strike or any specific action by the union.[/U]
