Peter Pays Paul

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Vallejo Can Void Union Contracts

Tuesday, March 17th, 2009

Mish has all the details regarding the latest ruling in the Vallejo bankruptcy case in Judge Rules Vallejo Can Void Union Contracts.

In a groundbreaking ruling as well as a rare victory for common sense and the overall good of taxpayers, Bankruptcy Judge Rules Calif. City Can Void Union Contracts.

In the first ruling of its kind, a bankruptcy judge held the city of Vallejo, Calif. has the authority to void its existing union contracts in its effort to reorganize, holding public workers do not enjoy the same protections Congress gave union workers at private companies.

If you recall, the city of Vallejo, CA filed bankruptcy over the high costs that it was having to pay for public services. I wrote more about the problems facing California’s cities here and here.