What Bankruptcy has done for Vallejo


The city of Vallejo in California filed for bankruptcy protection in 2008. What has happened since then? How has the city fared financially? Let’s take a look.

There are four labor unions in Vallejo that represent city employees. They claimed that California law protects their agreements with the municipality. But the bankruptcy court disagrees and granted permission to the city to cancel its collective bargaining agreements. This resulted in the unions having to accept terms they would not have otherwise agreed to.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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