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2021 Stroock Bankruptcy Guide

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138 (1st Cir. 1996) (comparing Section 1113's comprehensive procedural and substantive safeguards for the rejection of collective bargaining agreements to the very "basic" safeguards required for interim relief under that same Section). In no event shall any provision of Section 1113 be interpreted to permit a trustee to terminate or alter any provision of a collective bargaining agreement unilaterally without complying with the Section's requirements. 11 U.S.C. ยง 1113(f). A trustee who does so violates both Section 1113(f) and the National Labor Relations Act (NLRA), which could subject the trustee to a charge of unfair labor practice. Furthermore, in cases governed by the NLRA, a union may be free to strike even following contract rejection under Section 1113. "But a union's right to strike under the NLRA depends upon the terms of the [collective bargaining agreement] to which it is a party (for instance, the existence or continued viability, or lack thereof, of a contractual 'no-strike clause')." Nw. Airlines Corp. v. Ass'n of Flight Attendants, 483 F.3d 160, 173 (2d Cir. 2007). 74 Notably, the NLRA provides that the terms and conditions of a collective bargaining agreement continue to govern the relationship between a union and a Chapter 11 debtor-employer even after such agreement has already expired by its own terms. See In re Trump Entm't Resorts, 810 F.3d 161, 164 (3d Cir. Jan. 15, 2016). As a result, the Third Circuit affirmed a Delaware bankruptcy court decision holding that a debtor may use Section 1113(c) to implement changes in such post-expiration collective bargaining agreement. See id. at 175. 74 The Railway Relations Act (RLA), however, which governs labor relations in the airline industry, continues to apply in bankruptcy. The Second Circuit has ruled that a strike following an airline debtor's rejection of a collective bargaining agreement is barred by Section 2 (First) of the RLA, which requires "carriers and unions . . . [to] 'exert every reasonable effort to make [agreements] . . . and to settle all disputes.'" Northwest Airlines, 483 F.3d at 168. Thus, "a union subject to the RLA would still be under an obligation first to 'exert every reasonable effort to make [agreements] . . . and to settle all disputes' . . . notwithstanding the non-viability of any contractual no- strike clause." Id. at 173.

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