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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.

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2009 11 05 Cal Pelra Chapter 9 Presentation

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

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