Judge lets bankrupt Vallejo void union pacts

[Omaha Steve]

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2009/03/17/BANJ16IF7L.DTL

Carolyn Jones, Chronicle Staff Writer

Wednesday, March 18, 2009

In a move that's sure to have repercussions for cash-strapped cities across the state, a judge has ruled that Vallejo can nullify its union contracts as part of its bankruptcy restructuring.

U.S. Bankruptcy Court Judge Michael McManus ruled Friday that the city can reject its contracts with its fire and electrical workers unions, allowing the city to begin negotiations from scratch.

"I'm very satisfied. It confirms what we've been saying all along," said Mayor Osby Davis.

The city's bankruptcy legal bills have topped $4 million, Davis said. Fire union chief Kurt Henke said the total is closer to $7 million.

Vallejo declared bankruptcy in May 2008 after failing to close a $9 million deficit in its $83 million general fund budget. This year the city of 120,000 faces a $12 million deficit.

McManus called for a hearing March 23 on the status of the city's labor negotiations. He's then expected to rule on further details of the case. The city last month settled with its police union, removing it from the bankruptcy proceedings.

FULL story at link.

[Deja Q]

1. ..

:popcorn:

[rpannier]

2. But you can't void million dollar plus payouts given to Wall Street types

[Deja Q]

3. Activist judges, or perhaps the lack of given million dollar plus payouts