Here is how it went down at US
http://www.cwa-union.org/news/entry/us_airways_bankruptcy_judge_backs_unions#.UUeq7a5SjnA
CWA's attorney in the case, Daniel M. Katz, said that such rulings are rare, noting that bankruptcy courts routinely rubber stamp management proposals. "The unity produced by the joint opposition of the four major unions and the Office of the U.S. Trustee has informed management in no uncertain terms that they are being closely watched and that they don't have a free pass to pay themselves rich rewards when their principal accomplishment thus far has been to cut $1 billion a year in pay and benefits from rank-and-file workers," Katz said.
http://news.airwise.com/story/view/1118961624.html
US Airways said in a statement the ruling gives it a crucial tool for completing the merger transaction and it would abide by Mitchell's order to address the contracts of its most senior executives in future proceedings.
Opposition to the proposal from unions and the US Trustee's Office, a Justice Department branch that ensures bankruptcy law is being followed, prompted US Airways, the seventh-largest domestic airline, to scale back the plan.
Mitchell noted potential severance benefits for two dozen officers could total millions of dollars. He agreed with the trustee's office that the company's proposal lacked certain controls, especially to prevent executives from receiving severance if they refused to move with the merged company or if they already had new jobs when they left US Airways.
http://www.leagle.com/xmlResult.aspx?xmldoc=20051122329BR793_11051.xml
Before the court is the motion of the debtor in possession for approval of a severance and retention program — referred to as the Transaction Retention Program or TRP — for executives of the company and for over 1800 management employees. The motion is supported by the Official Committee of Unsecured Creditors (which negotiated a number of changes to the original proposal) but is opposed by the United States Trustee and by the unions representing the debtor's pilots, flight attendants, mechanics, and reservation agents.
1 Following an evidentiary hearing, the court took the motion under advisement. For the reasons stated, the court will approve the program for the non-officer management employees, but will require that the proposed new employment contracts for the officers be approved as part of a plan of reorganization.
