Reconciling Labor and Bankruptcy Law: The Application of 11 U.S.C. § 1113

This paper explores the complex intersection of labor law and bankruptcy law in the context of 11 U.S.C. §1113, a provision that governs the rejection of collective bargaining agreements (CBAs) in Chapter 11 bankruptcy proceedings. The analysis highlights the legislative history and judicial interpretation of §1113, emphasizing the statute’s balancing of debtor reorganization needs with the protection of unionized labor rights. The paper critically examines key case law and scholarly commentary to assess the provision’s effectiveness and its impact on negotiations between debtors and unions. It concludes by suggesting reforms aimed at improving procedural fairness and substantive protections for labor while maintaining the flexibility required for successful business reorganizations. One of the major cases explored in the article includes NLRB v. Bildisco & Bildisco.