I just read the TWU Q&A where it (incorrectly, IMO) claims that abrogation means there's no contract:I had read Levine's article some time ago and asked last night about how what happened at NWA applies to us.
It seems the twu is now saying (in conflict with Levine's article and their own advice of some time ago) we won't have a contract at all and the company will be free to do as it wishes and impose the original term sheet (not following precedent set in the NWA bankruptcy) even though being locked into negotiations with the company, should this TA not be passed so - the question remains - why is the twu putting lipstick on this pig when all that's required is a vote and acceptance by little jimmy afterward?
Per precident established by NWA, the POS we're supposedly going to vote on will be imposed if our contract is abrogated.
Is the twu afraid Judge Lane will not abrogate the contract? Why would they push so hard for acceptance if that wasn't the case?
http://www.twubkfacts.org/HOME/AAVoting/tabid/1804/HOME/AAVoting/MR/tabid/1811/Default.aspxQ: If we vote “no,” what happens next?
A: We will await the judge's ruling after the 1113 case is finished. Well over 90 percent of the union cases are lost in major 1113 corporate cases. Based on that track record, many expect we will have our contracts rejected. If this happens, we will have no contract. We will have to negotiate a new CBA (as if it were our first ever contract). While bargaining the new CBA, the carrier has indicated that the March 22 ask will be in place.
Q: What is the legal status of our contract if the judge grants AA's 1113 motion to reject our CBAs?
A: We have no contract at all and we enter into negotiations for what is in essence a first ever contract. During this period, after we exit bankruptcy, there is no status quo protection. This means that while AA is bargaining, the Company may argue that under past court decisions, it can change anything it wants to change. (AA has indicated that it will only impose the terms of the March 22 1113 ask—as we would expect. But there is no guarantee that will be the case.)
I believe that the answers to both of these questions are both incorrect. If the court abrogates the contract, AA would be free to impose the April LBO, along with its six year term. If the AA bankruptcy court follows the NW bankruptcy court (there's no guarantee it would), then AA would not be able to impose the March ask but could only impose the April LBO.