Originally Posted by
Gig103
Why is it that when a company's bankruptcy is discussed, critics love to go after the staff contracts? How about force Airbus to restructure some debt and leave people's livelihoods alone. Laying off execs is far more cost effective than some senior FAs.
Delta entered willingly into those contracts, but armchair CEOs love to judge the crew value.
Because people have a complete misperception of bankruptcy and believe that it just means that it's a free-for-all rather than a process whereby a judge is trying to balance all interested stakeholders - including employees. Union contracts can be adjusted in a bankruptcy court, but it is not handwave magic where anything goes. Same thing with creditors - it is not like all debt is magically extinguished.