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By Jim Douglas |
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September
19, 2010 - Language Will Prohibit Airlines from Breaking Contracts,
Dumping Pensions on PBGC and Taxpayers. In a major victory for organized
labor, airline employees and American taxpayers, the House Subcommittee
on Commercial and Administrative Law has adopted language of an
amendment into H.R. 4766 that will preclude The amendment, offered by Congressman Dan Maffei (D-NY) was passed in committee on an 8-4 roll call vote, contains language offered by the Airline Division of the International Brotherhood of Teamsters. |
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Committee Chairman John Conyers (D-MI) and seven committee members, who are also members of the Judiciary Committee, voted in favor of the bill. Under current practice, when an airline files for bankruptcy protection, management has the ability to unilaterally abrogate the existing labor contracts and may terminate employee pensions at will.
This was allowed
despite the millions of dollars that employee groups may have in the
plans or turn the plan over to the PBGC, an arm of the federal
government, leaving the The amendment language, written by the Teamsters Airline Division and now contained in H.R. 4766, would no longer allow airlines to use the bankruptcy code to unilaterally reject a union contract. They would be required to follow the procedures outlined in Section 6 of the Railway Labor Act (RLA), which governs the airline industry. Under the law, if adopted, airline managements would be prohibited from making unilateral changes without the assent of the union involved. If there is no agreement, no change may occur.
"Just like the
railroads, the airline industry is unique," said Captain David Bourne,
Director of the Airline Division of the Teamsters. "Railroads have never
been able to use the bankruptcy code to reject their collective
bargaining agreements. That is because Congress did not want to upset
and destabilize the special and delicate bargaining processes required
by the RLA which governs railroad bargaining. Airlines are also subject
to those same bargaining processes under the RLA. In adopting this
amendment, Congress has now recognized that the inconsistent treatment
of airline contracts under the bankruptcy code has been unfair and has
helped to destabilize the airline bargaining process. |