Will California Unions Force Cities Into Stockton Syndrome? – Investors.com

What the unions fear most in bankruptcy is its effect on contracts. If the bankruptcy court so decides, cities can be freed from their collectively bargained obligations. This is what a city in Stockton’s situation needs to save itself.

The state is doing what it can to keep such a thing from happening. It would prefer that the city’s bondholders absorb all the pain.

via Will California Unions Force Cities Into Stockton Syndrome? – Investors.com.

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