Los Angeles Bankruptcy Attorney

TITLE 11 - BANKRUPTCY
CHAPTER 11 - REORGANIZATION
    SUBCHAPTER IV - RAILROAD REORGANIZATION

-HEAD-
    Sec. 1167. Collective bargaining agreements

-STATUTE-
      Notwithstanding section 365 of this title, neither the court nor
    the trustee may change the wages or working conditions of employees
    of the debtor established by a collective bargaining agreement that
    is subject to the Railway Labor Act except in accordance with
    section 6 of such Act.

-SOURCE-
    (Pub. L. 95-598, Nov. 6, 1978, 92 Stat. 2642; Pub. L. 103-394,
    title V, Sec. 501(d)(35), Oct. 22, 1994, 108 Stat. 4146.)


                       HISTORICAL AND REVISION NOTES                   

                         SENATE REPORT NO. 95-989                     
      Section 1176 [enacted as section 1167] is derived from present
    section 77(n) [section 205(n) of former title 11]. It provides that
    notwithstanding the general section governing the rejection of
    executory contracts (section 365), neither the court nor the
    trustee may change the wages or working conditions of employees of
    the debtor established by a collective bargaining agreement that is
    subject to the Railway Labor Act [45 U.S.C. 151 et seq.], except in
    accordance with section 6 of that Act [45 U.S.C. 156]. As reported
    by the subcommittee this section provided that wages and salaries
    of rail employees could not be affected by the trustee, but that
    work rules could be rejected by the trustee. The reorganization
    court was given the authority to review the trustee's decisions and
    to settle any disputes arising from the rejection. This provision
    was withdrawn by the full committee, and hearings will be conducted
    next year by the Human Resources Committee in the area of rail
    labor contracts and the trustee's ability to reject them in a
    bankruptcy situation.

                          HOUSE REPORT NO. 95-595                      
      Section 1167 is derived from present section 77(n) [section
    205(n) of former title 11]. It provides that notwithstanding the
    general section governing the rejection of executory contracts
    (section 365), neither the court nor the trustee may change the
    wages or working conditions of employees of the debtor established
    by a collective bargaining agreement that is subject to the Railway
    Labor Act [45 U.S.C. 151 et seq.], except in accordance with
    section 6 of that Act [45 U.S.C. 156]. The subject of railway labor
    is too delicate and has too long a history for this code to upset
    established relationships. The balance has been struck over the
    years. This provision continues that balance unchanged.

-REFTEXT-
                            REFERENCES IN TEXT                        
      The Railway Labor Act, referred to in text, is act May 20, 1926,
    ch. 347, 44 Stat. 577, as amended, which is classified principally
    to chapter 8 (Sec. 151 et seq.) of Title 45, Railroads. Section 6
    of the Act is classified to section 156 of Title 45. For complete
    classification of this Act to the Code, see section 151 of Title 45
    and Tables.


-MISC2-
                                AMENDMENTS                            
      1994 - Pub. L. 103-394 struck out "(45 U.S.C. 151 et seq.)" after
    "Railway Labor Act" and "(45 U.S.C. 156)" after "such Act".

                     EFFECTIVE DATE OF 1994 AMENDMENT                 
      Amendment by Pub. L. 103-394 effective Oct. 22, 1994, and not
    applicable with respect to cases commenced under this title before
    Oct. 22, 1994, see section 702 of Pub. L. 103-394, set out as a
    note under section 101 of this title.