Helping you make smart bankruptcy decisions

If the US auto companies file for bankruptcy protection, does that legal action nullify the union contracts? ?

Just wondering how that works in the courts when a major industry with so many small first and second tier suppliers runs out of gas – pardon the pun. With the UAW pledging to give no more concessions, does that mean every auto worker loses their job if the companies fold? I’m not sure that makes sense to me.

It doesn’t necessarily mean that every worker will lose their job, but it does mean that the companies no longer have to abide by the union contracts. That means they can lay off workers, when they can’t under the union contracts.