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Nobody knows how a S.1113 proceeding will end and the bankruptcy code has never been tested. The Pittsburgh Tribune-Review recently wrote an interesting column on the subject and I have cut and pasted an interesting section below:
Interesting section:
Legal experts say it remains unclear whether unions may strike because no airline labor contracts have been rejected since federal bankruptcy laws were rewritten in the 1990s.
"It's a cutting-edge question, and the law is not clear," said Joseph O'Leary, a labor lawyer with McDermott Will Emory, a Boston law firm.
O'Leary has represented defunct LTV Steel, Wheeling-Pittsburgh Steel Corp. and other companies during bankruptcy reorganizations.
Workers in every industry -- except railroads and airlines -- are covered by the National Labor Relations Act, which permits employees to strike if their contracts are terminated, O'Leary said.
Railroads and airlines are treated differently from other industries because their labor strikes can affect public safety, O'Leary explained.
Olson, who has represented companies operating under the Labor Railway Act for more than 20 years, said he believes it would be difficult for US Airways' unions to strike.
If Mitchell rejects US Airways' labor contracts, the airline likely would serve unions with a notice that, under the Labor Railway Act, preserves the status quo. Employees would be forced to labor under terms of the company's last offer -- in this case, $1 billion in wage and benefit cuts -- until they negotiated new collective-bargaining agreements, Olson said.
If the unions strike or attempt to strike, the company could get a court injunction stopping them, Olson said.
If negotiations between the two sides don't result in new labor contracts, the dispute then would be forwarded to the National Mediation Board. The board may keep the case indefinitely -- thus raising the possibility that unions would have "very little hope of obtaining relief for years," Olson added.
Complete Story
USA320Pilot comments: There is reason to believe there will be a consensual agreement between the IAM-FSA & IAM-Trainers and US Airways, but there is little progress to report between the IAM-M and management. In my opinion, the IAM-M could have an "imposed" contract and members could be required to work under those terms or they must resign from the company, if the airline obtains a court injunction preventing "self help".
Best regards,
USA320Pilot
Interesting section:
Legal experts say it remains unclear whether unions may strike because no airline labor contracts have been rejected since federal bankruptcy laws were rewritten in the 1990s.
"It's a cutting-edge question, and the law is not clear," said Joseph O'Leary, a labor lawyer with McDermott Will Emory, a Boston law firm.
O'Leary has represented defunct LTV Steel, Wheeling-Pittsburgh Steel Corp. and other companies during bankruptcy reorganizations.
Workers in every industry -- except railroads and airlines -- are covered by the National Labor Relations Act, which permits employees to strike if their contracts are terminated, O'Leary said.
Railroads and airlines are treated differently from other industries because their labor strikes can affect public safety, O'Leary explained.
Olson, who has represented companies operating under the Labor Railway Act for more than 20 years, said he believes it would be difficult for US Airways' unions to strike.
If Mitchell rejects US Airways' labor contracts, the airline likely would serve unions with a notice that, under the Labor Railway Act, preserves the status quo. Employees would be forced to labor under terms of the company's last offer -- in this case, $1 billion in wage and benefit cuts -- until they negotiated new collective-bargaining agreements, Olson said.
If the unions strike or attempt to strike, the company could get a court injunction stopping them, Olson said.
If negotiations between the two sides don't result in new labor contracts, the dispute then would be forwarded to the National Mediation Board. The board may keep the case indefinitely -- thus raising the possibility that unions would have "very little hope of obtaining relief for years," Olson added.
Complete Story
USA320Pilot comments: There is reason to believe there will be a consensual agreement between the IAM-FSA & IAM-Trainers and US Airways, but there is little progress to report between the IAM-M and management. In my opinion, the IAM-M could have an "imposed" contract and members could be required to work under those terms or they must resign from the company, if the airline obtains a court injunction preventing "self help".
Best regards,
USA320Pilot
