Aug 19 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
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.