If YRC uses Chapter 7, its all over. Doors closed. If using 11 it reorganizes the debit, stays open & try's to survive. In 7 the pension money & the union workers are toast, just like the YRC. von. Most but not all Chapter 11 turn in to Chapter 7.
Collective Bargaining Agreements
Union contracts, or collective bargaining agreements, are not safe in Chapter 11 bankruptcy. In fact, some companies have filed Chapter 11 cases with the express intention of using the bankruptcy laws to seek negotiation of new terms even though the union contract has not expired.
When such a contract becomes burdensome to the debtor company, the
bankruptcy laws allow the debtor company to reject the contract. Rejecting the contract can have a positive effect on the company's ability to reorganize, but it will carry significant consequences, just as it would if it breached the contract outside of bankruptcy.
In order to bring about the best possible outcome for the company, the debtor will often seek concessions and modifications from the unionized workforce. If the company's financial predicament is severe, a failure to come to terms with its unions can spell disaster for the debtor and lead to the necessity of converting the case to Chapter 7 and liquidation.