2009 11 05 Cal Pelra Chapter 9 Presentation

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A brief summary of issues surrounding collective bargaining under Ch. 9 Bankruptcy Protection for municipalities in California.

A brief summary of issues surrounding collective bargaining under Ch. 9 Bankruptcy Protection for municipalities in California.

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  • 1. CalPELRA 2009 Annual Conference
    Labor Negotiations in Chapter 9 Bankruptcy
    Debora Boutte, City of Vallejo
    Marc Levinson, Orrick
    Charles Sakai, Public Law Group
  • 2. Speakers
    • Debora Boutte, City of Vallejo
    • 3. Marc Levinson, Orrick
    • 4. Charles Sakai, Public Law Group
  • Agenda
    • Introduction
    • 5. Bankruptcy Update
    • 6. Collective Bargaining Under Ch. 9
    • 7. Impact on Employee Relations
    • 8. Questions
  • Introduction
  • 9. Vallejo Background
    • Relatively low per capita income
    • 10. Binding arbitration in Charter
    • 11. One of the first cities in CA to implement
    • 12. 3% at 50 for public safety employees
    • 13. 2.7% at 55 for miscellaneous employees
    • 14. Very generous employee and retiree health program
    5
  • 15. Vallejo Pre-Bankruptcy
    FY 08 Budget
    • Attempt to reduce 2 truck companies
    • 16. Lost arbitration, Cost: $4 million
    • 17. Economy tanked, revenue loss: $4 million
    • 18. Employee flight, pay out cost: $4 million
    • 19. Negotiation
    • 20. Mediation
    • 21. Bankruptcy
  • Vallejo Pre-Bankruptcy
    • Media
    • 22. Administrative Rules/Charter/Muni Code
    • 23. MOU’S
    • 24. Documentation
  • Bankruptcy Update
  • 25. Bargaining Under Ch. 9
  • 26. Bargaining Timeline
    • 5/23/08 - Bankruptcy Petition Filed
    • 27. 6/17/08 - Motion for Approval to Reject CBA’s
    • 28. 9/05/08 – BK Judge approves eligibility
    • 29. 9/15/08 – RSHS hired
    • 30. 1/22/09 – VPOA deal cut
    • 31. 2/04/09 – CAMP deal cut
  • Bargaining Timeline
    • 6/22/09 – BAP approves eligibility
    • 32. 8/27/09 – Court approves stipulated rejection of IAFF MOU
    • 33. 8/31/09 – IBEW MOU Rejected
    • 34. Parties Currently in Negotiations
    • 35. 1/4/10 – IAFF Mediation
    • 36. 1/11/10 – IAFF Arbitration
  • What’s Different?
    “Normal” Concession Bargaining
    • Absent an open agreement or reopener, there is no obligation to bargain and no option for unilateral implementation
    • 37. Threat of Layoffs/Furloughs Create Incentive to Bargain
  • What’s Different?
    Bankruptcy Changes
    • Unilateral Implementation Under “Pendency Plan”
    • 38. Motion for Approval to Reject Collective Bargaining Agreements
  • Bargaining Under Chapter 9
    • Rejecting CBA’s
    • 39. Pre-Rejection Bargaining Under Bildisco
    • 40. Post-Rejection Bargaining
  • Bargaining Under Chapter 9
    • Endgame
    • 41. Mutual Agreement
    • 42. Unilateral Implementation
    • 43. Interest Arbitration
  • Impact on Employee Relations
  • 44. Impact of Bankruptcy
    No Or Little Communication
    Employee Morale
    In Fighting
    Discipline
    Industrial Disability Retirements
    Employee Exodus
  • 45. Importance Of Communication
    Communication Is Extremely Critical During Bankruptcy/Hard Economic Times
    Communication Should Be Done On An On-going Basis
    Communication Can Avoid:
    Mistrust
    Employee Exodus
    In-fighting
  • 46. Importance Of Communication
    Communication Can Build:
    Trust
    Teams
    Loyalty
    Plan Of Action
    Better Survival Rate
  • 47. Questions