Detroit unions file challenge to city's bankruptcy petition

Mon Aug 19, 2013 2:48pm EDT

Aug 19 (Reuters) - Detroit's unions filed a challenge on Monday to the city's historic bankruptcy filing, contending that the city has not met key requirements to seek protection from its creditors.

The American Federation of State, County and Municipal Employees Council 25 and other unions said Detroit has not proven it is insolvent and has not negotiated in good faith with its creditors. In a filing with the U.S. Bankruptcy Court in Detroit, the unions also contended that Chapter 9 of the federal bankruptcy code, which governs municipal bankruptcies, violates the U.S. Constitution by encroaching on states' rights.

The unions' objection also said Michigan's emergency manager law, which enabled Detroit to file for bankruptcy on July 18, violates the state constitution because the law does not explicitly protect retirement benefits for public workers.

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Comments (3)
jpsassy65 wrote:
A union suing a city with no money…LOL..people wonder why the rest of the world laughs at us.

Aug 19, 2013 3:57pm EDT  --  Report as abuse
tzinser wrote:
Everything is fine. No need to change a thing.

Aug 19, 2013 4:07pm EDT  --  Report as abuse
livylu13 wrote:
Why should Detroit Workers be any different than Enron workers that lost everything when the company went under? Not that I want them to lose everything but why should they be bailed out when Enron employees were not?

Aug 19, 2013 4:53pm EDT  --  Report as abuse
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