Can Delphi Void its Collective Bargaining Agreement?
Q. Call me stupid, but I thought a contract is binding, and it is the job of courts to enforce contracts. Why does Delphi, with its billions of dollars of assets, think it doesn’t have to honor its contracts like our collective bargaining agreement? A. Early in law school, students are inundated with preachy rhetoric about the sanctity of contracts and of the pivotal role contracts play as the basis of Western Civilization. Professors were constantly reminding us that government should play an invisible role as it simply enforces the written terms negotiated between contractual parties and not act as a nanny-state favoring one party over another because it feels sorry for the financial situation of one party. Late in law school however, students learn that in 1978, our elected representatives in Congress gave corporate officers the power to void their contractual obligations by paying a filing fee for ‘reorganization’ without requiring these corporate officers to hand over the corporat
