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Wheeling-Pittsburgh Steel Corp. v. United Steelworkers of America, AFLCIO-CLC

791 F.2d 1074 (1986)

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Wheeling-Pittsburgh Steel Corp. v. United Steelworkers of America, AFLCIO-CLC

United States Court of Appeals for the Third Circuit

791 F.2d 1074 (1986)

Facts

Wheeling-Pittsburgh Steel Corp. (Wheeling-Pittsburgh) (plaintiff) was a steel manufacturer. Wheeling-Pittsburgh had a collective-bargaining agreement with the United Steelworkers of America, AFL-CIO-CLC (the union) (defendant), covering the wages and benefits of its employees. Between 1982 and 1985, Wheeling-Pittsburgh experienced financial problems and asked the union for four reductions in its labor costs. After the union refused to make the fourth reduction, Wheeling-Pittsburgh filed for Chapter 11 bankruptcy and reorganization. Soon after filing for bankruptcy, Wheeling-Pittsburgh filed an application with the bankruptcy court seeking to reject the collective-bargaining agreement. The bankruptcy court authorized the rejection, and Wheeling-Pittsburgh immediately reduced its labor costs. The district court affirmed the bankruptcy court. The union appealed, arguing that Wheeling-Pittsburgh failed to satisfy the requirements of 11 U.S.C. § 1113 by showing that the rejection of the collective-bargaining agreement was fair, equitable, and necessary for its reorganization.

Rule of Law

Issue

Holding and Reasoning (Sloviter, J.)

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