The Next Labor Step

USA320Pilot

Veteran
May 18, 2003
8,175
1,539
www.usaviation.com
What’s next?

US Airways has entered bankruptcy and the company has made agreements with the ATSB and a few creditors to use some of the ATSB money for DIP financing. Without adequate cash in bankruptcy it will be very difficult to exit. I believe that having contracts with the unions would not only give the unions more protections but would allow the access to more cash for DIP financing.

For labor the next step in the process will be a Section 1113 (e) of the Bankruptcy Code that states:

If during a period when the collective bargaining agreement continues in effect, and if essential to the continuation of the debtor's business, or in order to avoid irreparable damage to the estate, the court, after notice and a hearing, may authorize the trustee to implement interim changes in the terms, conditions, wages, benefits, or work rules provided by a collective bargaining agreement. Any hearing under this paragraph shall be scheduled in accordance with the needs of the trustee. The implementation of such interim changes shall not render the application for rejection moot.

Essentially, 1113 (e) allows a company in bankruptcy 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 temporary modifications are imposed by a judge, they are not a matter for negotiations with the Union and are not subject to member ratification.

Regards,

USA320Pilot
 
Hang on, it's going to be a wild ride. I believe it's not going to be pretty for the company.....They just don't have a clue.

And I wonder how many Executive Vice President's will keep their job's thru this........Oh well ...The employees don't give a D*MM anymore.

I wish I could put a more positive spin on this...I'll leave that to...you know who.....



Respectfully, Respectfully, Respectfully, Respectfully, Respectfully,
 
If we're reading this law correctly, I would not be at all surprised if the Company asked the judge to implement the last set of proposals on a temporary basis while everyone attempts to negotiate new agreements.
 
USA320Pilot said:
If temporary modifications are imposed by a judge, they are not a matter for negotiations with the Union and are not subject to member ratification.

Regards,

USA320Pilot
[post="179101"][/post]​
They are also temporary and not always granted.
 
FA Mikey said:
They are also temporary and not always granted.
[post="179115"][/post]​

Highly unlikely they won't be granted unless the unions have some kind of super lawyers representing them we haven't heard about.
 
USFlyer:

USFlyer said: "If we're reading this law correctly, I would not be at all surprised if the Company asked the judge to implement the last set of proposals on a temporary basis while everyone attempts to negotiate new agreements."

USA320Pilot comments: That's what ALPA's advisors told the MEC Friday.

Regards,

USA320Pilot
 
if the unions have/had a super lawyer(s) then i wonder if they would ask the judge to appoint a court trustee to run this airline as we all know this set of clowns still to this day havent figured anything out how to run the airline
 
Rampman said:
STRIKE!!!
[post="179151"][/post]​

Ha. Ha.

Most of your co-workers don't have the stones
to walk out. Working for 30% less under a
judges ruling sure beats making 100% and
looking like a silly nitwit holding a picket sign.
 
I wonder what a judge will think of the last couple of years of management lethary, hand-wringing, big payouts to executives, and then at the edge of the cliff, cries from Lakefield that if only he could get carte blanche from labor's pocket, everything would be alright.

Even if Bruce gets a sweetheart deal from the courts and completely emasculates the unions, what kind of motivation among employees is going to be left?

Heck, why not cut wages to below commuter levels? I guess the next arguement by Lakefield to the judge is that the court should acquiese anything he wants or they'll be no jobs at all. That way when the company closes, Brucey can blame the courts for his management team's utter failure.
 
USFlyer said:
If we're reading this law correctly, I would not be at all surprised if the Company asked the judge to implement the last set of proposals on a temporary basis while everyone attempts to negotiate new agreements.
[post="179108"][/post]​

If that were the case, the co. would have no incentive to negotiate with labor, if the judge approved these proposals.

That just won't work for us.
 
Pit,
I dont think they can exit BK without having a voted on contract. Sure the judge can enforce one for a while but to get out of BK they have to have a ratified contract.
 
Rampman said:
Pit,
I dont think they can exit BK without having a voted on contract. Sure the judge can enforce one for a while but to get out of BK they have to have a ratified contract.
[post="179161"][/post]​
Give the groups fair contracts and it shouldn't be a problem. Or is the problem that management just can't even fathom contracts in which workers are treated as assets rather than liabilities. Hmph...
 
:up: use all your sick time now because you will never get it back,i didnt.
the employees of you have been mislead by poor management.they will never get out of this one.sleep in ,forget about them they could care less about you.
 
Rampman, you cannot strike...

We must all:
1. Abide by the judges ruling (on temp relief) until such time the 1113 process is complete.
2. Or quit...

Those are the only options right now.