Posted on 05/13/2008 7:50:21 AM PDT by SmithL
Hoping to prevent a city bankruptcy that would suspend their union contracts, Vallejo's police, firefighters and rank-and-file employees went public Monday with an offer to cut their salaries and give up raises.
Capping months of fiscal agonizing, the City Council voted last week to file for Chapter 9 bankruptcy following dire predictions by city staff of imminent insolvency. The petition for bankruptcy is expected to be filed sometime this week, said city spokeswoman Joann West.
Only one other city in California - Desert Hot Springs (Riverside County) in 2001 - has gone into bankruptcy. Orange County took the same step after $1.6 billion in investment losses in 1994. Both emerged from bankruptcy after resolving the debts and adopting financial reforms.
In a joint statement, three Vallejo employee unions said police officers and firefighters would sacrifice 6.5 percent of their salaries for a year and give up raises totaling 11 percent for the next two years. General workforce employees, represented by the International Brotherhood of Electrical Workers, would give up 3 percent of their salaries for a year and forego anticipated raises of 10 percent over the next two years, according to the unions.
The labor groups said their proposal would save the city $10.6 million in the next fiscal year, beginning July 1. Chris Norem, spokesman for the three unions, said the proposal does not call for the unions to later recoup the $10.6 million.
City staff estimates that without bankruptcy or draconian reductions, the general fund deficit in the 2008-09 fiscal year would be $16 million.
The unions say bankruptcy, which would let the city renegotiate its debts and labor contracts, is not needed.
(Excerpt) Read more at sfgate.com ...
The unions say bankruptcy, which would let the city renegotiate its debts and labor contracts, is not needed.The unions know that bankruptcy would invalidate all of their contracts with the city.
Half Moon Bay is next...
Chapter 9 BK’s will be happening by towns all across california as housing prices (and property taxes) continue their 25% decline (at least).. and thus too city revenues.
It’s amazing that we live in a country where a city or county can file bankruptcy and no one gets tarred and feathered.
Screw’em . How about a city with a non union work force.
The union cause this problem time to get rid of them.
Maybe, maybe not: Half Moon Bay settlement bill nears Assembly vote - City hopes to avoid paying developer $18 million
TOO LATE - you greedy unions
Last week my BIL and SIL visited us, and both are Harley riders and wanted to go the Harley store in Vallejo.
We took them there from 11 am to noonish.
While we were there two of the Harley employees and two customers said that in the evenings, 911 cop calls were being handled by the Benicia Police with a minimum of a 30 minute response time.
Apparently things are as bad in the Vallejo fire deparmtent as the Vallejo so called leaders have apparently queried the fire departments in other cities re coverage. Those requests were not met with great positive responses.
Vallejo used to have Mare Island Naval Shipyard, closed by Bubba and now we see how well the “peace Dividend” has lasted. and be sure and thank Boxer/Feinstien for their support to keep the shipyard open (sarcasm off)
ANY local POL who tries to hold the line against these unions gets MASSACRED in local elections, usually with help from the national Union.
Most already know that the bill is unpayable when they do these deals, but they’ll be long gone when the bill comes due. Someone else’s problem.
“Vallejo used to have Mare Island Naval Shipyard, closed by Bubba and now we see how well the “peace Dividend” has lasted. and be sure and thank Boxer/Feinstien for their support to keep the shipyard open.”
It is amazing how many people who were layed off when Mare Island closed try to blame it on the Republicans.
I remind them that it was closed in 1996, and who the president was and who the $inators were and what political party all three represented. My wife is amazed at the brain dead ones/Mare Island workers and spouses, still blaming us while stuck in an insanity time wrap.
So 12 years later, the survivors and their adult children have to drive to work for decent jobs in Fairfield, Vacaville, Benicia and American Canyon.
Yep. And all of those platinum plated benefits would (hopefully) go bye-bye.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.