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Vallejo CA can void Union Contracts

A bankruptcy judge has ruled that Vallejo, CA can void its contracts with union workers while the City is in Bankruptcy.  

The Vallejo, CA Chapter Nine case is being closely watched by cities across the country. Its historic parallel is New York city in 1975-6. Back then the garbage workers making $45,000 finally did bankrupt the City, along with other unworkable union contracts. Vallejo is paying many city firemen and police six figure salaries. No doubt the Unions will appeal this decision, but I suspect it will be upheld. 

Unions in Vallejo and at the UAW are discovering the deflation party has arrived. 
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2 responses to “Vallejo CA can void Union Contracts”

  1. Kristin Avatar
    Kristin

    I think I am going to move to Vallejo and become a police officer. Six figures, really!

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  2. Dennis Elam Avatar
    Dennis Elam

    Kristin
    I suspect you waited too long. California sold some thrity years municipal bonds this past week, I wonder if they will ever pay off. As I say all this happened in NYC thirty years ago, and I suspect NYC is just about back to that point now.
    Rush says the taxes of 40,000 people support NYC, good example of a tipping point, those folks leave, like Rush did, and well what is left?

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