The Next Labor Step
- Thread starter USA320Pilot
- Start date
PITbull
Veteran
Rampman said:
Ok, we can do that. The agreements have to be consentual. Not that hard from my prespective. We offered the co. major cost savings in our 2 proposal. They just ignored it.
EyeInTheSky said:
Then there is the real possibility that everyone seems to either overlook or ignore or even put out of their mind which is: What if this franchise is so bad off that what was being offered and rejected as garbage contracts, and I am sure they were, but what if just maybe things are sooooooo bad they were honestly the best that COULD have been offered and still not drown? Just a thought because unless one believes management is made up of 100% demons, that thought is plausible. Hmmm
PITbull
Veteran
cavalier said:
If the company in reality needed every single provision in these agreements no matter what....guess what, wouldn't be doable to erode the quality of life to oblivionin order to keep a job, that ultimately will not keep you from the creditors banging down your door.
Nope...that won't work. Co. and labor has to provide balance.
I won't leave management off the hook. They need to operate the airline with a real plan.
Yeah right, Wildcat strike...
THAT will go over well with the judge many of you have placed your hopes in to force the company to your will...
Wake up people, the company wanted us in BK because it forces labor to do/not to do many things. Start gettin' used to the concept.
Now it comes down to whose lawyers are better, not cute catch phrases or defiant stances.
Happy about it? NO <_< But I am realistic...
THAT will go over well with the judge many of you have placed your hopes in to force the company to your will...
Wake up people, the company wanted us in BK because it forces labor to do/not to do many things. Start gettin' used to the concept.
Now it comes down to whose lawyers are better, not cute catch phrases or defiant stances.
Happy about it? NO <_< But I am realistic...
Watch out! Being realistic is risky business around these here territories partner.Rico said:
If it wasn't a big deal it wouldn't be all over the TV stations with the talking heads already counting the job losses before they happen.
I hope pitbull is wrong but know in my heart she is right on about 30% cuts! OUCH as we revisit the early 70’s around here.
Pulled this off the UAL IAM web site it's well written and user friendly.
Overview of the 1113 Process
An explanation of the sections of the bankruptcy code that allows temporary modifications and permanent rejection of collective bargaining agreements is outlined below.
1113 © – Total Rejection
Section 1113 ©, Chapter 11, of the U.S. Bankruptcy Code. Section 1113 © allows a company to ask a judge to reject, terminate, labor contracts.
Section 1113 © states:
The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that -
(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (B)(1);
(2) the authorized representative of the employees has refused to accept such proposal without good cause; and
(3) the balance of the equities clearly favors rejection of
such agreement.
United Airlines submitted the terms of the 1113© proposal to the IAM on December 13, 2002. Negotiations on these proposals are expected to commence quickly.
By law, a hearing on the 1113© petition is to be held within fourteen days from the date of the filing of the application. However, the court may extend the time for the commencement of such hearing for a period not exceeding seven days.
The court is required to rule on the application for rejection within thirty days after the date of the commencement of the hearing. However, the court may extend the time for making a ruling for an additional period as the company and the Union may agree to. If the court does not rule on the application within thirty days after the date of the commencement of the hearing, or within such additional time as the company and union may agree to, the company may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court.
In 1113 © applications the judge has only two options when making a ruling; reject the company’s application and leave the labor contract intact, or approve the application and terminate the labor agreement completely. United would then be free to impose wages, work rules an benefits as they see fit. The judge cannot impose permanent contract terms on the parties.
1113 (e) – Temporary Modifications
Section 1113 (e) of the Bankruptcy Code 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. United Airlines is asking the judge to impose a 13% wage reduction on IAM represented employees. The company is seeking to have these terms effective January 1, 2003.
The negotiations required under section 1113 © to achieve a permanent solution would continue even if temporary modifications are imposed. The 1113 © process, and the application for a complete rejection of the contracts, would still go forward. The temporary modification would only be in effect until the judge rules on the application to reject the agreements, or permanent modifications to the agreement are negotiated, ratified by the membership and approved by the bankruptcy judge.
Home United Airlines UAL Bankruptcy Q&A
Overview of the 1113 Process
An explanation of the sections of the bankruptcy code that allows temporary modifications and permanent rejection of collective bargaining agreements is outlined below.
1113 © – Total Rejection
Section 1113 ©, Chapter 11, of the U.S. Bankruptcy Code. Section 1113 © allows a company to ask a judge to reject, terminate, labor contracts.
Section 1113 © states:
The court shall approve an application for rejection of a collective bargaining agreement only if the court finds that -
(1) the trustee has, prior to the hearing, made a proposal that fulfills the requirements of subsection (B)(1);
(2) the authorized representative of the employees has refused to accept such proposal without good cause; and
(3) the balance of the equities clearly favors rejection of
such agreement.
United Airlines submitted the terms of the 1113© proposal to the IAM on December 13, 2002. Negotiations on these proposals are expected to commence quickly.
By law, a hearing on the 1113© petition is to be held within fourteen days from the date of the filing of the application. However, the court may extend the time for the commencement of such hearing for a period not exceeding seven days.
The court is required to rule on the application for rejection within thirty days after the date of the commencement of the hearing. However, the court may extend the time for making a ruling for an additional period as the company and the Union may agree to. If the court does not rule on the application within thirty days after the date of the commencement of the hearing, or within such additional time as the company and union may agree to, the company may terminate or alter any provisions of the collective bargaining agreement pending the ruling of the court.
In 1113 © applications the judge has only two options when making a ruling; reject the company’s application and leave the labor contract intact, or approve the application and terminate the labor agreement completely. United would then be free to impose wages, work rules an benefits as they see fit. The judge cannot impose permanent contract terms on the parties.
1113 (e) – Temporary Modifications
Section 1113 (e) of the Bankruptcy Code 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. United Airlines is asking the judge to impose a 13% wage reduction on IAM represented employees. The company is seeking to have these terms effective January 1, 2003.
The negotiations required under section 1113 © to achieve a permanent solution would continue even if temporary modifications are imposed. The 1113 © process, and the application for a complete rejection of the contracts, would still go forward. The temporary modification would only be in effect until the judge rules on the application to reject the agreements, or permanent modifications to the agreement are negotiated, ratified by the membership and approved by the bankruptcy judge.
Home United Airlines UAL Bankruptcy Q&A
I seem to remeber hearing during the TWA BK, than no judge had ever granted a section 1113 filing. But, I could be wrong.
Good luck all of you.
Good luck all of you.
Seatacus
Veteran
28yrsnojob said:use all your sick time now because you will never get it back,i didnt.
[post="179165"][/post]
Your one great fellow employee. Don't you realize the havoc it creates for passengers and other employees when we work short handed.
