AA seeks to cancel labor contracts

[shon7]

http://www.businessweek.com/ap/2012-03/D9TP374O0.htm

wonder how this will turn out.

 

[Data]

That was the whole point, no?

 

[jtf]

Did any other post 9/11 bankruptcies go for the voided contract and if so, were they successful? I'm not asking if they achieved concessions or just got them from the judge, but if any judge allowed a major airline to void the contract.

 

[Flash]

How can they make the argument with 4 bil in the bank?

 

[macdu]

How can they make the argument with 4 bil in the bank?

It's less than that and the pension debt is huge.

 

[Broke in CVG]

Did any other post 9/11 bankruptcies go for the voided contract and if so, were they successful? I'm not asking if they achieved concessions or just got them from the judge, but if any judge allowed a major airline to void the contract.

NO. The first time it was actually tested, instead of a management threat was Comair during DAL's 2005 BK when Judge Hardin REFUSED to negate the Flight Attendance's contract after ALPA caved with a concessionary deal.

http://www.nytimes.com/2006/04/27/business/27air.html


Judge Hardin did NOT want to set the precedent of allowing a company to use Bankruptcy as a tool to negate a legally binding labor contract.

 

[wmuflyguy]

NO. The first time it was actually tested, instead of a management threat was Comair during DAL's 2005 BK when Judge Hardin REFUSED to negate the Flight Attendance's contract after ALPA caved with a concessionary deal.

http://www.nytimes.com/2006/04/27/business/27air.html


Judge Hardin did NOT want to set the precedent of allowing a company to use Bankruptcy as a tool to negate a legally binding labor contract.

That is not why he did ruled the way he did, he ruled the way he did because of the companies unwillingness to negotiate in good faith.

http://www.weil.com/news/pubdetail.aspx?pub=8056

In case you forgot he did reject our contract in December of 2006

http://articles.orlandosentinel.com/2006-12-22/business/COMAIR22_1_comair-pilots-bankruptcy

and also ruled we couldn't go on strike if the company imposed its work rules on us.

http://www.highbeam.com/doc/1G1-160869181.html

It was all rendered moot after numerous "drop dead" dates given by the company and 11th hour negotiating, an agreement was finally reached.


However, a contract was imposed on the NWA FA's in July 2006, during BK. http://minnesota.publicradio.org/display/web/2006/07/31/flightattendants/

The BK judge ruled that the FA's could strike but the company appealed that decision and got an injunction prohibiting work action and eventually a judge ruled a strike would not be allowed.

http://www.washingtonpost.com/wp-dyn/content/article/2006/09/15/AR2006091501020.html

 

[Iflyamouse]

Did any other post 9/11 bankruptcies go for the voided contract and if so, were they successful? I'm not asking if they achieved concessions or just got them from the judge, but if any judge allowed a major airline to void the contract.

I believe for DAL and UAL the judge did vote to void the contracts. Back in '03, Hawaiian airlines filed BK and the judge upheld their contracts. The story I heard was that Hawaiian filed BK in Hawaii and the judge there seemed to be pro-labor, hence his ruling. AMR filed BK in New York where the sentiment seems to favor management.

Guess we'll find out in a couple of weeks what the AMR judge thinks.

 

[jtf]

I hope the judge tells Horton he can void the contracts right after he voids his own golden parachute and terminates his own pension. That scum will slash and burn and then bail out as soon as they either reemerge from bankruptcy, or merge with another airline.

 

[tomgoodman]

I believe for DAL and UAL the judge did vote to void the contracts.

In the DAL case, the judge never had to make that decision.

Delta, itself, sought permission in 2005 to void a contract with its pilots but never received it because it negotiated a contract before the judge ruled.

http://www.reuters.com/article/2012...News&feedType=RSS&feedName=companyNews&rpc=43