Thread regarding Boeing Co. layoffs

Chapter 11

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

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| 2881 views | | 11 replies (last March 22, 2020) | Reply
Post ID: @OP+12QXKZLd

11 replies (most recent on top)

@1ggvx+12QXKZLd is right as much as I don't want to admit it. I think the plan all along was Chap 11, but the virus accelerated the timeline.

If you every thought about leaving Boeing, now is the time. There are not many jobs out there now with this pandemic. Don't wait around until you are competing with the thousands that will be laid off in a few short months for the few jobs that exist. Get on it NOW.

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Post ID: @1gcoe+12QXKZLd

It looks as if one prediction on this site will come true. Bankruptcy is not far off. The claim is that GMs bailout saved 1.5M jobs, but most of those were in the supply chain Nd they were not in the US. The key paragraph in the article is:

If Boeing follows the model set by General Motors and Chrysler after the 2008 financial crisis, it would file for bankruptcy protection under Chapter 11 and restructure its finances.

https://news.yahoo.com/us-government-nationalize-boeing-013447260.html

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Post ID: @1ggvx+12QXKZLd

Here We Go

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Post ID: @1bxxc+12QXKZLd

Without context or source reference
What you’ve just said >
http://quotegeek.com/quotes-from-movies/billy-madison/1122/

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Post ID: @oakk+12QXKZLd

Its a win for the banks!
Buy back stock, profit grab 1
Sell short, profit grab 2
Buy back for pennies on the dollar, profit grab 3
Sell after company is profitable again, profit grab 4
All done with QE (taxpayer) money of course.
Where do you think all this repo money is going?
Stealth bailout.
No Congress.
Thank me later,
Rich Smooth

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Post ID: @oanb+12QXKZLd

They will continue to burn cash & increase debt.
Then chapter 11 without Warn provisions and full reorganization. Union starts over from scratch.
See:
https://corporate.findlaw.com/human-resources/warn-act-obligations-in-chapter-11-bankruptcies.html

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Post ID: @7ifj+12QXKZLd

Update: it looks like a chapter 11 filing is imminent. Good luck, guys.

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Post ID: @2izx+12QXKZLd

Calhoun is Jack Welch school; just wait & see

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Post ID: @jij+12QXKZLd

New ceo is from GE and Wall Street seems old with it saying he knows how to run B
Just look at GE at where it is now versus decades ago, in ruins
GE has a legacy of cuts and its leaders trained by the infamous Jack in the box
Hell will freeze over if there is not cuts in 2020

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Post ID: @qfg+12QXKZLd

I only know....that YES, the union probably knows something they aren't telling us.....that's par for the course....also, YES, B will try to cut wages significantly in 2024 negotiations.....along with significant other takeaways (medical etc.) .....there's long been rumors of pension buyouts etc. but I'm not sure about that....also I wouldn't be surprised if they come to us with a new contract offer ( it'll be the sky is falling, take this or we'll have no choice to leave the state etc. ) before 2024.....

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Post ID: @nqt+12QXKZLd

I would want to see the removal of contract workers and the suspension of dividend payments first before labor contracts are ripped up.

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Post ID: @vol+12QXKZLd

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