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projections or evidence to demonstrate the interim modifications are necessary.106 But it is the total quantum of savings, not every element, that must be necessary.107 As part of its order granting interim relief, the court may order the debtor to reduce overhead expenses by reducing salaries of non-union employees also.108 Some additional factors may be examined by courts, such as the ultimate effect on the company if the court later denies the debtor's motion to reject the collective bargaining agreement.109
Once an order granting interim relief has been entered, the parties are obligated to continue to negotiate in good faith toward permanent modification necessary for the debtor's successful reorganization pursuant to 11 U.S.C. § 1113(b).110 An order pursuant to § 1113(e) remains in effect and enforceable even though the collective bargaining agreement may have expired.111
Where a debtor does not obtain modification of collective bargaining agreements pursuant to§ 1113, there is a split of authority as to whether § 1113 creates a priority for employees' propitiation claims arising under their agreements. The Sixth Circuit held because § 1113 prohibits a debtor from escaping its obligations under a collective bargaining agreement
106 In re Wright Airlines, Inc., 12 C.B.C.2d 98, 99-100 (Bankr. N.D. Ohio 1984).
107 New York Typographical Union No. 6 v. Royal Composing Room, Inc., 848 F.2d 345 (2nd Cir. 1988), cert. denied, 109 S. Ct. 1529 (1989).
108 In re Russell Transfer, Inc., 48 B.R. 241, 244 (Bankr. W.D. Va. 1985) (court ordered 20% and 10% reduction in union and nonunion employees' salaries, respectively).
109 In re Wright, 12 C.B.C.2d at 100.
110 In re Salt Creek Freightways, 46 B.R. 347, 351 (Bankr. D. Wyo. 1985).
In re Chas P. Young Co., 111 B.R. 410 (Bankr. S.D. N.Y. 1990) (order allowing interim relief remained in effect although underlying agreement had expired and court could extend period of interim relief); In re D.O. & W. Coal Co., 93 B.R. 454 (Bankr. W.D. Va. 1988) (same); see also In re United Press Intern, 134 B.R. at 513 (court granting interim relief may retain jurisdiction to modify relief given where circumstances require); In re Evans Products, Co., 55 B.R. 231, 234 (Bankr. S.D. Fla. 1985) (same).
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