New Yorkers who are in a union and believe they have a secure job and are safe in their future employment will often be shocked to learn that their employer is experiencing financial problems. They will face fear and worry if those financial problems extend to the degree that the employer needs to file for bankruptcy or is dealing with litigation related to those financial struggles. Unions must make certain that they protect their interests in this situation by contacting a law firm that is experienced in union representation.
The reality of the job being eliminated because of financial issues with the employer is just one aspect that union members should be concerned about. Other issues such as their labor contracts no longer being in effect, health insurance disappearing, and their pension being eliminated are very real. Lawyers who know the problems a labor union can have under the shadow of a bankruptcy and other litigation can be of great assistance to sift through the contracts, examine what the employer is going through and take the necessary steps to protect the members.
There are many issues that will be under consideration if an employer is filing for bankruptcy. That includes: a pre-bankruptcy structuring or workouts; selling assets based on the Uniform Commercial Code and the bankruptcy code; filing motions so automatic stays can be lifted; pursuing legal remedies so debtors can deal with executory contracts; and seeking arbitration due to contract problems after the employer has filed for bankruptcy.
Union members who are in the middle of a difficult situation with their current job and their future benefits should make certain they do whatever they can to protect their interests. A legal firm that understands how to approach an employer bankruptcy and help the union members is essential and is the first call that should be made when there is a belief that an employer’s finances are in turmoil and bankruptcy might be a possibility.