Vallejo, Unions Still Talking

Bankrupt Vallejo and its public employee unions continue to negotiate to reach a settlement that would allow the city to exit Chapter 9 bankruptcy protection.

The city and its unions have said little about the talks since a federal judge ruled in early September that the city was insolvent according to the bankruptcy code and set a December date for hearings on the city’s move to reject its collective bargaining agreements.

The Vallejo Times Herald this week reported that the city has expanded its negotiations to include the Confidential, Administrative, and Professional Employees Association, in addition to police, firefighter, and other rank-and-file city workers.

City negotiator Sandy Salerno told the local paper that talks with workers are “not on life support,” suggesting that officials still think they has room to reach an agreement with workers.

Vallejo in May filed the nation’s biggest municipal bankruptcy since Orange County, Calif.’s 1994 filing. The Bay Area city of 120,000 has been hit hard by rapidly rising labor costs, the housing downturn, and the loss of major retailers, including Wal-Mart Stores Inc.

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