The town of Central Falls, RI has filed for bankruptcy and all contracts with municipal workers are now void. This is what happens when unions refuse to agree to concessions. I wonder if we’ll be seeing more of this in the future.
Projo 7 reported:
All contracts with municipal workers and retirees, including the fire and police departments, are immediately voided.
Retirees must begin to pay 20 percent of their medical coverage effective immediately, as Flanders proposed when he met with the city’s retirees July 19.
“Everything was done to avoid this day,” Flanders said.
“Services have been cut to the bone. Taxes have been raised to the maximum level allowable.
“We negotiated with Council 94 and the police and fire unions, without success, attempting to reach voluntary concessions, and we tried in vain to persuade our retirees to accept voluntary reductions in their benefits.”
The case was filed by Providence lawyer Theodore Orson as a Chapter 9 petition. Pursuant to court rules, the chief judge of the 1st Circuit Court of Appeals, Sandra L. Lynch, designates the judge who will oversee the case. Lynch designated U.S. Bankruptcy Judge Frank Bailey, of the District of Massachusetts, to conduct all proceedings in the case. …
Via Mish Shedlock who predicts a flood of city bankruptcies.