Section 1113 and Rejection of Collective Bargaining Agreements


Summary

This practice note discusses Section 1113 of the Bankruptcy Code and the ability of a debtor during the course of the bankruptcy case to reject a collective bargaining agreement (CBA). This note addresses (1) the process the debtor must follow to reject a CBA, (2) the rights and protections afforded to the union members (that are party to the CBA) in opposing rejection, and (3) the divergent case law as to the standards for rejecting a CBA pursuant to Section 1113.