Recent Rejections Of Collective Bargaining Agreements

Law360, New York (October 16, 2006, 12:00 AM EDT) -- In a number of recent cases, a Chapter 11 debtor's ability to reject its collective bargaining agreements (CBAs) has been a pivotal issue. In light of the much publicized labor problems in the airline and automotive industries, it is likely that these issues will remain in the forefront of Chapter 11 cases.

This article discusses a recent case, In re Northwest Airlines, addressing the rejection of CBAs in the airline context.

* Prerequisites to Rejection in Section 1113 *

Congress enacted Bankruptcy Code Section 1113 in...
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