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'!!!!!!!!