In 2008, the Vallejo City Council voted to declare bankruptcy with the clear goal of breaking union contracts. If Vallejo is successful in using bankruptcy to break its promises to its workers and retirees, all public sector union contracts are in jeopardy.

But we can protect union contracts by passing AB 155 (Mendoza), which would create a state oversight process to ensure that bankruptcy is only used as a last resort. The State Assembly will be considering AB 155 this week; please take action now.

Send a letter to your legislator today, and urge them to protect union contracts by supporting AB 155.

Dear [ Decision Maker ] ,

In 2008, the Vallejo City Council voted to declare bankruptcy with the clear goal of breaking union contracts. The city has continued to meet its obligations to all creditors, except city employees. The city of Vallejo has asked the bankruptcy judge to VOID all union contracts, and the judge has concluded that he has the power to do so.

If Vallejo is successful in using bankruptcy to break union contracts, all public sector union contracts are in jeopardy. Press reports confirm an increasing number of cities and counties are publicly considering bankruptcy as an option. Across the state, cities are now using the threat of municipal bankruptcy to force public employees to accept major concessions on wages, healthcare, and retirement benefits.

Municipal bankruptcies are not just bad for city workers, police and firefighters. These bankruptcies result in devastating cuts to seniors, children, and public safety. Municipal bankruptcy undermines the fiscal health of a community for decades to come because of the lasting negative impacts on bond ratings, insurance rates, home values, and the business climate.

AB 155 (Mendoza) would protect working families and local communities from the harm caused by a reckless or politically motivated municipal bankruptcy by creating a state oversight process to review bankruptcy petitions. It would NOT ban municipal bankruptcies, but would simply ensure that bankruptcy is used as a last resort. AB 155 would also ensure that local elected officials have access to information about the real effects of a bankruptcy and the other options available.

For these reasons, I ask you to support AB 155 on the Assembly floor.

Sincerely,

Campaign Launched:
June 01, 2009