Vallejo hearing to reject collective bargaining agreements delayed in light of eligibility hearing

By Jennifer Lanning Drey

Portland, Ore., July 24 - The City of Vallejo, Calif.'s hearing for approval to reject four of its collective bargaining agreements was postponed to Aug. 19 in order to allow the court to first hold an eligibility hearing to determine whether the city's Chapter 9 bankruptcy case will be dismissed, according to a source familiar with the case.

The hearing on Vallejo's request to reject the collective bargaining agreements was originally scheduled to begin July 23 in the U.S. Bankruptcy Court for the Eastern District of California.

As previously reported, the city wants to reject its collective bargaining agreements with the Vallejo Police Officers Association, the International Association of Firefighters, the International Brotherhood of Electrical Workers and the Confidential, Administrative, Managerial and Professional Association of Vallejo.

When requesting the approval, Vallejo said the contract rejections are the first step toward restructuring its labor costs and developing a plan of adjustment that will return the city's general fund to solvency in the short term and will restore its financial health for the long term.

On June 27, the local chapter of the International Association of Firefighters filed a motion asking the court to dismiss the city's Chapter 9 bankruptcy case, which the union said it believed was being used to avoid contractual obligations to city workers.

Vallejo filed for bankruptcy on May 23. Its Chapter 9 case number is 08-26813.

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