I have no idea how the UAW contracts will fare if any or all of the big three automakers collapse; I haven't even explored that issue (what's the point?). From what I've heard, the media has decreed (and who better to shed a little light on reality than the media?) that the real issue is the Republicans trying to break up the UAW and the Democrats trying to save the UAW (and by extension, civilization). The truth has no place in this issue; there are more important things at stake.
Anybody here conversant with the role the unions played in Colt's decline? I know..... I know....., Bush did it.
Here's what section 1113c of the Bankruptcy Laws says regarding the Motion to Review (aka - consideration of) Temporary/Permanent Relief (from the Collective Bargaining Agreement)...
"Section 1113(c) Motion Review
Section 1113(c) is the bankruptcy code under which a debtor seeks to reject a collective bargaining agreement or reach a consensual agreement with the Union to put in place long-term or permanent modifications to the Contract.
This section of the bankruptcy code provides the following parameters:
Prior to filing to reject a Contract, the debtor must make a proposal to the Union that details all of the modifications “necessary” to restructure while also assuring that all creditors and affected parties are treated “fairly and equitably.”
The debtor must provide the Union with relevant information necessary to evaluate the debtor’s proposal.
Both parties are required to meet, at a reasonable time, to confer in “good faith” in an attempt to reach mutual agreement on modifications to the Contract.
Once the debtor officially files a Section 1113(c) motion with the court, a hearing will be scheduled to occur within 14 days after the filing date unless the parties mutually agree to a later date or the court determines a need to extend the hearing date according to the circumstances of the case. The bankruptcy judge will make a ruling on the motion within 30-days of the hearing. Discussions between the company and the Union may continue in an effort to work toward a consensual agreement up to the date of the court ruling.
Absent a consensual agreement and assuming the debtor has met the parameters listed above, the court will approve the rejection of the Contract if:
the Union has refused to accept such proposal without “good cause” (as determined by the court including the parameters listed above); and
the court determines that the concessions of other constituencies in the bankruptcy is commensurate to those made by labor."
