Posted on 08/08/2009 8:51:21 PM PDT by SmithL
VALLEJO -- After almost a year of legal wrangling, Vallejo's labor unions have dropped their appeal of the city's bankruptcy filing, removing one of the final obstacles to the North Bay city's financial restructuring.
The city's fire and electrical workers' unions withdrew their appeal to the Ninth U.S. Circuit Court of Appeals in San Francisco late Thursday. The unions had challenged the city's accounting, saying that money was shifted from the general fund into other accounts to give a false appearance of financial ruin and as a means to scrap its labor contracts.
Union officials did not return phone calls today.
Meanwhile, contract negotiations between the unions and the city of Vallejo continue. U.S. Bankruptcy Judge Michael McManus, who's handling the city's bankruptcy filing, ordered the parties into mediation several months ago.
Both sides are awaiting McManus' ruling on whether the city can invalidate its contracts.
Vallejo has spent millions fighting the labor unions' appeal, and millions more on bankruptcy proceedings. . . .
(Excerpt) Read more at sfgate.com ...
....after adding additional millions to the city’s costs.
I would think this is a semi-victory for the city. A lot of CA cities were looking to do this. O was trying to step in and say no.
Most people believe at least two hundred cities are in the start-up position over this bankruptcy business. Eventually...even LA and San Fransisco will have to discuss it.
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