Biz Bankruptcy

The UAW believes that our bankruptcy system is broken, and urgently needs to be reformed to stop these types of abuses. Congress enacted Sections 113 and 1114 of the Bankruptcy Code to stop companies from using the bankruptcy process as a device to destroy collective-bargaining agreements and retiree benefits. These provisions were supposed to promote legitimate, good-faith bargaining and the balancing of all parties’ interests, so that any modifications to wages and benefits would be limited to those that are absolutely necessary to prevent the liquidation of a company.