Based on what the Company has said, they will not ask for modifications to already signed agreements (e.g, ALPA, AFA and TWUs). However, I believe the judge can modify those contracts if he desires, especially if a creditor(s) object. Anyone else with more info?
While infront of the judge will all work group contracts be looked at...........
- Thread starter USFlyer
- Start date
When all of this goes to BK court, which at this point and time I believe it will, because that's what the company wants...will all work group contracts be up for revisions: Management, F/A, Pilots, those under $30,000 or just labor groups without agreement ?
oldiebutgoody
Veteran
The judge is not here to run the company, only to either approve or disapprove of actions by the "Debtor-in-Possession", i.e. management. If the management doesn't ask for it, the judge will not look at it. Therefore, having the 1113 letter IS a good thing! The judge IS NOT here to run the company OR save it. His job is to protect the creditors. There COULD be groups present in the proceedings which represent groups of creditors which will request MORE action by the judge (creditors that have stakes in other airlines may see the end of USAirways as the best way to preserve their other investments) up to and including liquidation. At this point, however, I see this as highly unlikely since U is so close to their cost cutting goal. One never knows just what the judge is thinking (or what the external influences may be!)
As I understand it, those work groups who were willing to meet the company half way and negotiated new agreements, ie the pilots, rampers and F/A's, were in return granted written guarantees from the company that they would be protected during the BK proceedings.
Those who would rather be on the streets, and take everyone else with them, will likely achieve at least the first part of their goal when they take their case before the BK judge (likely a Republican appointee) on September 10.
Those who would rather be on the streets, and take everyone else with them, will likely achieve at least the first part of their goal when they take their case before the BK judge (likely a Republican appointee) on September 10.
The court scheduled the September 10 hearing after US Airways filed a motion per S.1113 of the U.S. Bankruptcy Code. The motion specifically states the company will seek contract relief only from those unions without a ratified restructuring agreement; therefore, the court will only hear the special motion at this hearing. The court will also hear US Airways’ motion for the IAM & CWA to pay the corporation damages.
The employee groups who have ratified restructuring agreements with the debtor-in-possession, will have their contracts reviewed by the court when US Airways files its Plan of Reorganization (POR) later this year.
Although the court could modify the restructuring agreements, with the parties agreeing the contracts are appropriate, most observers believe these contracts will remain in place upon emergence, unless there is a third party objection and the court agrees with the motion seeking contract changes.
Chip
The employee groups who have ratified restructuring agreements with the debtor-in-possession, will have their contracts reviewed by the court when US Airways files its Plan of Reorganization (POR) later this year.
Although the court could modify the restructuring agreements, with the parties agreeing the contracts are appropriate, most observers believe these contracts will remain in place upon emergence, unless there is a third party objection and the court agrees with the motion seeking contract changes.
Chip
