I'm wondering how long before the Chapter 11 narrative is thrown about? I dont see Calhoun as anything but a hatchet man in an attempt to trim the fat as fast as possible and stop the bleed out of the Big B.
If and when it happens you can see all contracts cancelled.. yes Union contracts and the breakup of the company in to pieces that are profitable and split 737 into its own entity and file Chap 11.
https://en.wikipedia.org/wiki/11_U.S.C._%C2%A7_1113_%E2%80%93_Rejection_of_Collective_Bargaining_Agreements
"11 U.S.C. § 1113, “Rejection of Collective Bargaining Agreements,” codifies under what circumstances collective bargaining agreements may be rejected in a Chapter 11 Bankruptcy. When a company seeks to reject or modify a collective bargaining agreement under Chapter 11 of the U.S. Bankruptcy Code, Bankruptcy Code §1113, entitled Rejection of Collective Bargaining Agreements, clarifies the circumstances under which such agreements may be rejected. Section 1113(b) and (c) generally require the following steps:
The debtor must make a proposal to the union to modify the collective bargaining agreement anytime after filing a petition and before an application seeking rejection of the agreement.
The proposal must be based on the most complete and reliable information available at the time of the proposal.
The proposed modifications in employees' benefits and protections are those necessary to permit the reorganization of the debtor.
The proposed modifications must assure that all creditors, the debtor and all of the affected parties are treated fairly and equitably.
The debtor must provide the union with such relevant information as is necessary to evaluate the proposal.
The debtor must meet at reasonable times with the union between the time of the making of the proposal and the hearing on the application to reject the collective bargaining agreement.
The debtor must confer in good faith with the union in attempting to reach mutually satisfactory modifications of the agreement.
The union must have refused to accept the debtor's proposal without good cause.
The balance of equities clearly favors the rejection of the collective bargaining agreement."
https://link.springer.com/article/10.1007/BF01384934
"Chapter 11 bankruptcy and the termination of collective bargaining contracts
Lawrence Spizman & John Kane
"Employee Responsibilities and Rights Journal volume 3, pages277–284(1990)
Abstract
In 1984 the Supreme Court ruled that employers can unilaterally break an existing collective bargaining contract upon filing a chapter 11 bankruptcy petition. This ruling changed both the contractual responsibilities of the employer to honor the collective bargaining agreement and the rights that workers have under the National Labor Relations Act. The purpose of this article is to show the conditions under which a Chapter 11 bankruptcy proceeding will lead to the termination of a labor contract. Our results suggest that (a) legal rulings that reduce the costs of bankruptcy will increase the number of contractual dissolutions and (b) a Chapter 11 bankruptcy is more likely to occur when a firm operates in a climate of uncertain expectations."
Wonder why the Union told us to get our strike funds in order.. Do they know something? Will B attempt to cut the wages significantly in the 2024 negotiations? What about pensions in the event of Chap 11? these are all questions to keep in mind moving forward IF... the Chap 11 starts to appear in the news.
RHSC