Adelphia Contracts Remain in Force and Can Be Negotiated
Contrary to reports by some Adelphia managers, the Chapter 11 bankruptcy proceedings does not prevent the company from entering into first contracts with newly-organized workers, and the company is still bound to honor existing collective bargaining agreements.
There has been some confusion on this issue in the weeks since Adelphia sought Chapter 11 protection from creditors. Supervisors in Rutland, VT, told technicians who are seeking CWA representation that the Creditors Committee or bankruptcy judge would have to approve any contract that the parties negotiated. This is not true. Chapter 11 bankruptcy is meant to help the company survive. As such, the court allows a company to continue doing normal business i.e., continuing to buy materials and supplies, paying workers, keeping up benefit plans and negotiating collective bargaining agreements when workers choose a union.
