tu154m
Posts: 610
Joined: Tue Oct 02, 2001 4:52 am

In Chp. 11, What Happens To...............

Sun Feb 01, 2004 12:05 pm

This is for those of you who work or have worked for a company that has entered into Chp. 11. What happens to your health benefits under Chp 11??? Just wondering as this is something I have not heard discussed. Also, a carriers leased aircraft........are the majority given back to the lessor or are the leases renegotiated???
S
CEOs should swim with cement flippers!
 
EMBQA
Posts: 7798
Joined: Sat Oct 25, 2003 3:52 am

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 12:19 pm

Well, I worked for an airline that entered Chapter 11 two weeks after I was hired on. To be honest, nothing changed.....the aircraft all remained, benefits never changed except our pay checks had 'Under Debtor Control'.......or something like that printed on them.
"It's not the size of the dog in the fight, but the size of the fight in the dog"
 
DeltaSFO
Posts: 2407
Joined: Fri Nov 03, 2000 11:22 am

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 12:19 pm

If we go into Chapter 11, we're as good as dead. Forget about our healthcare... we'll have to find new jobs.
It's a new day. Every moment matters. Now, more than ever.
 
PiedmontGirl
Posts: 1112
Joined: Mon Nov 24, 2003 2:39 am

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 12:37 pm

Our paychecks were smaller. Out healthcare remained.

When you're in Ch.11 everything is up for grabs.

Ch.11 is reorganization. Continental has been through it twice, and, with the help of excellent management, seems to be fine now.

With union contracts, the company has to move to void the contracts and impose their own work rules, benefits, and so on. If employees are not covered by union contracts, the health care and benefits are at the pleasure of the company and can be set aside at any time, with or without bankruptcy.
 
tu154m
Posts: 610
Joined: Tue Oct 02, 2001 4:52 am

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 1:46 pm

Thanks for the insight! DeltaSFO.......I hope we don't go through this!!!
S
CEOs should swim with cement flippers!
 
DeltaSFO
Posts: 2407
Joined: Fri Nov 03, 2000 11:22 am

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 3:56 pm

Our paychecks were smaller. Out healthcare remained.

When you're in Ch.11 everything is up for grabs.

Ch.11 is reorganization. Continental has been through it twice, and, with the help of excellent management, seems to be fine now.

With union contracts, the company has to move to void the contracts and impose their own work rules, benefits, and so on. If employees are not covered by union contracts, the health care and benefits are at the pleasure of the company and can be set aside at any time, with or without bankruptcy.


Given the current industry climate, and given the condition that US and UA are currently in, it's doubtful that any additional carrier would find anything approaching reasonable DIP financing, much less the sweetheart terms under which Continental filed both times.

Bankruptcy, at least right now, is almost certain death.
It's a new day. Every moment matters. Now, more than ever.
 
Skyway1
Posts: 977
Joined: Wed Jan 30, 2002 12:15 pm

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 4:00 pm

Tu154m.....

You don't happen to work for ATA do you???

Seems we might have had a very close call in the past few days!!!

Chris

 Nuts  Nuts
KNUK, KNUK, KNUK woowoowoo
 
tu154m
Posts: 610
Joined: Tue Oct 02, 2001 4:52 am

RE: In Chp. 11, What Happens To...............

Sun Feb 01, 2004 4:03 pm

Skyway1..........not ATA, but a major in ATL!!!
S
CEOs should swim with cement flippers!
 
Iflewrepublic
Posts: 511
Joined: Wed Jun 14, 2000 11:31 pm

RE: In Chp. 11, What Happens To...............

Mon Feb 02, 2004 4:44 am

WHOA!!!!!

I'd better start reading the papers and watching the news. What's happening in Atlanta? The last I heard, Delta was tossing around the bankruptcy ball.

It's easy to get tunnel vision with everything going on.

Iflewrepublic.
Aviation is proof that, given the will, we have the capacity to achieve the impossible.
 
StevenUhl777
Posts: 3281
Joined: Sun Jul 08, 2001 11:02 am

RE: In Chp. 11, What Happens To...............

Wed Feb 04, 2004 3:33 pm

For union contracts:

Health benefits are usually modified along with wages, assuming a union contract. Companies who file Ch. 11 are required by law to reach a negotiated settlement first regarding compensation and benefits. If such efforts fail by a certain time (I think it's preset by the court) then the company can use section 1110 (or 1113, not sure which one specifically) of the bankruptcy code to petition the court to void the contracts and have the company's proposed changes forced upon the employee groups.

In the early 1980's, Lorenzo used the bankruptcy code to blatantly bust contracts. I think Bethlehem Steel did the same, and several years later, Congress passed legislation that required companies who file Ch. 11 to follow certain guidelines when seeking cuts from employees.

That's what I know folks...it's not a fun process, that's for sure...wouldn't wish it on anyone. I too hope Delta doesn't go that route, that would be a shame, as DL is a great airline with great people working for it.
And the winner for best actress is....REESE WITHERSPOON for 'Walk the Line'!!!!!!!!
 
uadc8contrail
Posts: 1636
Joined: Thu Sep 11, 2003 1:23 am

RE: In Chp. 11, What Happens To...............

Wed Feb 04, 2004 3:49 pm

TU154M,
health,dental:start getting ready to pony up at least 20% maybe less and figure on 80/20_20 is your part of the visit to the dr or a e/r visit up to probably 1500.00 out of your pocket, then they(company)should kick in the rest, best way to go is if hmo is no cost to you use that as a option only if your family dr participates with that plan, if not good luck trying to get anyone to accept you, ..hope this helps.....and those dl employees in here....dont worry,,,im still collecting a paycheck and even though it sucks i have to pay on health,,,i plan on doing about 8-10 hrs a month of ot to cover that,,,,but ua is increasing the employee part 7% a yr till 2009 so it will be expensive as hell come 2006 and beyond
bus driver.......move that bus:)