Law Commons^™

Collective Bargaining Agreements And Chapter 9 Bankruptcy, Ryan Preston Dahl

Ryan P Dahl

The recent cycle of automotive and aviation bankruptcies is ending. The next major restructuring cycle may come from a very different quarter. Municipalities throughout the United States will face the very real prospect of insolvency. The treatment of collective bargaining agreements will play a significant role in this process. Unaffordable collective bargaining obligations may be the efficient cause of such filings. Alternatively, rejecting such agreements may be the most effective means of restoring a municipal debtor’s financial health.

Statutory gaps, the absence of significant caselaw, and limited scholarly commentary raise serious questions as to how courts should treat collective bargaining …