Bankruptcy Forms: Filing Bankruptcy Chapter 7 Bankruptcy Software Chapter 13

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TITLE 11–BANKRUPTCY

CHAPTER 11– REORGANIZATION

Sub Chapter IV – Railroad Reorganization

Sec. 1167. Collective bargaining agreements

 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.

(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 This provision was withdrawn by the full committee, and 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.

                       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.


                               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.

                  Section Referred to in Other Sections

    This section is referred to in section 1165 of this title.


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Legal Resource Center: United States Code TITLE 11 Filing Bankruptcy Forms Software