US Airways' creditors are requiring the company have LCC market rate contracts for all of its work groups or they will not provide financing. The interim ATSB financing expires on January 15 and requires labor participation.
Therefore, Judge Mitchell has a choice. He can impose permanent contract changes and prevent "self help", if it's legal, and permit the company to operate or he can side with the AFA, IAM, & CWA. If he sides with the unions the company will not meet the creditor's requirements and will liquidate. Moreover, if he permits "self help" the company will liquidate.
Therefore, there are 3 options:
1. The union's can reach new labor accords (either consensual or imposed) and work at US Airways.
2. The union's can reach new labor accords (either consensual or imposed) use the job as a bridge to another job.
3. Not have new labor accords or "self help" and then the company will liquidate. If this occurs nearly 30,000 people will have no income during the holidays, no medical insurance, no dental insurance, no COBRA, no severance pay, no recall rights, no J4J opportunity, and no passes.
Liquidation could be right around the corner and maybe it's time for the ATSB, the creditor's committee, RSA, and management to throw in the towel and just liquidate the company. That way those who support "self help" will get their way and contribute to the business enterprise failing.
As I said before, Rico is right because "you cannot strike what no longer exists" and a part of me wants to see the “Naysayers†get their wish to shut the company down.
With that said, in my opinion, Judge Mitchell’s primary responsibility is to the creditor’s committee and he wants to see the company survive. Therefore, I believe the unions will not be able to prove the company does not need labor cost cut relief, he will impose the cuts in the company’s motion, and he will prevent the “self help†option. According to ALPA legal the S.1113© process has never been tested, there is no precedence, and the court has significant latitude.
Best regards,
USA320Pilot