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Home > News, Articles & Events > Flight Attendants Strike Bankrupt Airline

Bankruptcy Court is without jurisdiction to stop flight attendant strike

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    • Bankruptcy and Creditor's Rights
    • Fiduciary

Date: September 18, 2006

On August 17, 2006, Bankruptcy Judge Allan Gropper (S.D.N.Y.) decided to permit Northwest Airlines Corp. (“Northwest”) flight attendants to strike the air carrier.  Judge Gropper found that while the Chapter 11 debtor-airline had the right, pursuant to Section 1113 of the Bankruptcy Code to reject its collective bargaining agreements and institute new terms and conditions of employment for its flight attendants, Northwest could not, if it exercised that power, bind union of flight attendants from engaging in a strike against the airline carrier.  The Court found that upon rejection of the collective bargaining agreement, to engage in strike activity did not violate prohibition imposed by the Railway Labor Act (RLA) on union's engaging in any self-help during negotiation of initial collective bargaining agreement.   Federal law generally divests the federal courts of jurisdiction to enjoin strike activity in cases involving labor disputes.

In re Northwest Airlines Corp., 346 B.R. 333 (Bkrtcy.S.D.N.Y.,2006)


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