Mikey, I'd agree with you except that AA approached the unions
over two months ago asking to negotiate, and provided both the dollar amount of the items that management sought to change back in February. The same holds true for all the unions.
Why did it take eight weeks to come up with a tentative agreement?
Again, I'll question the wisdom of holding out hope for a better deal in bankruptcy. Taken from the TWU's website:
What Does it Mean to “Meet at Reasonable Times†and “Confer in Good Faith?â€
The Company may not
– Issue a “take it or leave it proposal†See In re S. A. Mechanical, Inc., 51 B. R. 130 (Bankr. D. Ariz. 1985); or
– Agree to meet only once or a few times when the Union indicates a willingness to negotiate further . See In re American Provision Co., 44 BR 907, 909- 910 (Bk. D. Minn 1984).
But, Court Will Consider Union’s Failure to Negotiate Prior to Bankruptcy Filing in Ruling on Application to Reject
“When it is clear a debtor needs relief, intransigence by the union, in the pre- petition negotiations, may also warrant rejection†In re Garafalo’ Finer Foods, Inc., 117 B. R. 363, 371 (Bk. N. D. Ill. 1990) Requirement to provide information and confer in good faith satisfied when “immediately before it filed for bankruptcy [company] opened its books to the [union] for examination and made information available to the [union] during the bargaining process that followed.†In re Appletree Markets, 155 B. R. 431, 438, 144 LRRM 2203 (S. D. Tex 1993), (finding that requirement to provide relevant information was satisfied when company opened books to union prior to filing for bankruptcy)
Also, Courts have held that it is Not Unreasonable -
- To give the union only ten hours to consider a proposal (In re Maxwell Newspapers, Inc., 981 F. 2d 85 (2 nd Cir.));
- To file an application to reject four days after it presented proposal (In re Century Brass Products, 55 B. R. 712- 716 (Bk. D. Conn 1985)); or
- To meet with the union only four times regarding the proposal (In re Kentucky Truck Sales) 52 B. R. 797, 801 (Bk. W. D. KY. 1985). The good faith conference requirement is satisfied if the Company has seriously attempted to negotiate reasonable modifications to the agreement prior to the hearing. See In re Kentucky Truck Sales, 52 B. R. 797, 801-02 (Bankr. W. D. Ky. 1985)