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Old 04-28-2008 | 11:48 AM
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rickair7777
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From: Engines Turn or People Swim
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Originally Posted by stinsonjr
I see your point...just was thinking it would be a way to "stick it to the man"

You make an excellent case as to why this is risky. One question though...if Mesa can break the CBA, then why shouldn't the training contracts also be tossed? Obviously, if the CBA is tossed and QOL gets even worse for MAG pilots (not sure how, but lets say it can) then the terms of the original job offer that included the training contract have changed...shouldn't that void the training contract?
The training contract would absolutely NOT be void in BK.

The way BK works is that the company, with court approval, can break existing contracts unilaterally if doing so will help the company to survive and re-organize. Some contracts may be kept intact, if the company wants to do that.

The training contract is an obligation or debt in the company's favor, and there would be no reason beneficial to the company to throw it out.

Kind of like if the bank holding your home mortgage...the bank can get rid of debts that it owes (ie building lease, utility bills, retirement funds, etc), but you STILL owe your mortgage. If the bank liquidates, then creditors will own whatever is left over, including your mortgage paper...you will just end up making payments to a new party.

The training contract doesn't guarantee ANY conditions of employment, it just says you have to work for them. Since it is not formally tied to the CBA, it would be hard to make a case that the training contract is invalid without the CBA. Seperate issues. Fair? No. Legal? Probably.
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