ABSTRACT

This chapter examines the position and treatment of employees’ rights and interests during bankruptcy reorganisations under Chapter 11 of the US Bankruptcy Code. Analysis is made from the social and economic perspectives of the need to give struggling businesses a chance to reorganise their financial affairs and the drive for employment protection and continuity during bankruptcy reorganisations. Labour union movement and collective bargaining, as the two most effective forms of employee protection in the US private labour sector will be analysed. The non-uniform application of employee protection laws and policies to all employees in the private sector workforce in the US during bankruptcy reorganisation is also examined.