Bankruptcy as anti-labor tool: DELTA seeks to void employee stock options

[Bluebear]

ATLANTA - Delta Air Lines Inc., which is operating under bankruptcy protection, asked a judge Monday to allow the nation's third-largest carrier to void roughly 93 million stock options held by 70,000 current and former employees and directors.

http://news.yahoo.com/news?tmpl=story&cid=2632&ncid=2632&e=3&u=/ap/20060320/ap_on_bi_ge/delta_bankruptcy_3

[KamaAina]

1. Who would want their crappy stock anyway?

It's one level above those Hot Inside Stock Tips you get in your inbox alongside the Christian Debt Counselors, Free Hoodia and whatnot.

Alas, bankruptcy as anti-labor tool has become a trend. Notice the repukes didin't make it harder for corporations to file bankruptcy, just us peons... :grr:

[Coastie for Truth]

2. Very sad history

The interpretation of the Bankruptcy Act that allows "executory contracts" (contracts for future performance) to be voided in a Chapter XI reorganization has always been part of the Bankruptcy Code. But, it was extended to "employee benefits" by a very liberal, Democratic judge.

He had been a union lawyer, a liberal law school professor, and a Democratic Party leader before named to the bench. And, academically, a very bright guy.

The decision came up in the rash of iron and steel bankruptcies in the 1970's.

I remember driving from Pittsburgh PA down 8th Avenue through Homestead, West Mifflin, Kennywood, Clairton, and across the Bridge to McKeesport and Versailles, Glassport, etc. during the 1970's - it was like watching a part of my life and history die.

[lindisfarne]

3. Amazing how all our laws favor the corporation. People accepted

stock options in lieu of higher salaries, better benefits, and so on.

Next move: demanding the employees pay back 10% of the total pay they earned while working at Delta.