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Municipal Bankrupcy To Dissolve Union Contracts?



February 27, 2008 – Comments (1)

Looks like someone is suggesting bankrupcy for Vallejo, CA in order to dissolve union contracts and start over from scratch for wages.


"Many residents strongly urged the council to avoid bankruptcy, while many others - repeatedly blaming the public safety unions - said that the Chapter 9 filing may be the only way to restructure the city budget, and dissolve the labor contracts, now set to expire in 2010.

"Bankruptcy is a bad option. It's a bad option for a lot of reasons," said Vallejoan Andy Russo, vice president of the International Federation of Professional and Technical Engineers. Property values will plummet and give Vallejo a "stigma which will stay with us for a long time."

However, resident Dave Corbett said bankruptcy could be like "chemotherapy" for the city, unpleasant and painful, but healthy in the long-run. He added labor contract negotiations have been fruitless so far.

"Do what's right for Vallejo. If you have any integrity at all, cut those strings," said business owner Rick Mariani, referring to a new council majority that several months ago replaced one that had been more confrontational with the unions."


1 Comments – Post Your Own

#1) On February 27, 2008 at 7:37 PM, AnomaLee (28.98) wrote:

Another good article from my favorite....


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