Skip to comments.Detroit bankruptcy challenged on constitutional grounds
Posted on 08/20/2013 3:53:49 AM PDT by Oldeconomybuyer
Public labor unions took aim at Detroit's historic bankruptcy filing on Monday, asking a U.S. court to toss the city's bid for protection from its creditors because it is constitutionally flawed on both the state and federal levels.
A union that represents public-sector workers even took the unusual step of arguing that Chapter 9 of the federal bankruptcy code, under which municipalities seek protection from their creditors, violates the U.S. Constitution.
But as a midnight deadline for filing objections to the bankruptcy passed, Detroit's bondholders were conspicuously absent from the long list of unions, pension funds and individual creditors lining up to argue against bankruptcy.
Unions representing the city's firefighters and police alleged that state-appointed emergency manager Kevyn Orr had failed to negotiate in good faith, stating "there were no negotiations."
(Excerpt) Read more at reuters.com ...
Too bad the labor unions didn’t show the same concerns when Obama stole the equity from General Motors stockholders, bondholders, creditors, independant dealers, etc.
The secret of being a good mechanics is tightening bolts until they break, then backing off a quarter turn.
Unions take this literally.
Must negotiate with creditors....hmmmm doesn’t necessarily have to include ALL creditors does it? I bet if there were a million $1 creditors, they wouldn’t, would they?
Stands to reason that if the state appointed manager negotiated with enough creditors to whom the city owes SUBSTANTIAL CURRENT REAL DEBT, versus FUTURE pension liability debt, they’d get a clearer picture of the immediate problem. A problem that likely told the manager there wasn’t even a way out of the immediate debt. Screw the UNION pension.
There is still no money even if they win this challenge.
They’re trying to force a bailout that not even Obama will give them.
the unions are a good part of the reason for the bankruptcy
They already got their share of stimulus and that didn’t save them. We can’t set the bailout precedent.
Its astounding that they fought so hard against the new bridge being built by Canada. They fought it because the city one have any control of the money which means they won’t be able to get their usual cut.
Been tried and already failed... deetroit is dead.
Lawyers....... they are money grubbing straw grabbers.
They milk the unions of irreplaceable funds while holding visions of the sugarplum past dancing before their eyes.
Jim Manzi argues that millions of people are depending on promises that cannot possibly be kept. At the top of the list are people counting on municipal and state pensions, Social Security, and underfunded private pensions.
Nothing in any constitution guards against going broke!
In unions dere is strength!
If not for the taxes and regulations a lot of these people could start small businesses to help themselves.
At the top of the list should be the citizens who own, pay taxes and run businesses in the city of Detroit. They are not receiving a fair share of services. Restore those services to adequate levels, all other obligations are secondary.
Except maybe some sort of provision to not spend any money they don’t have. Although, to be sure such text admittedly isn’t in every copy of every Constitution.
The bondholders know that standard bankruptcy is the only path that will get them even pennies on the dollar. The unions want to grab ALL the assets and cash for themselves, as with GM.