Federal Judge Steven Rhodes has ruled that, under law, pensions can be cut in Detroit’s bankruptcy.
“This entire process is illegal and it should be thrown out by Judge Rhodes.” said one protester.
The city’s emergency manager says after reforms and contract adjustments, Allen Park will avoid filing for Chapter 9 protection.
There are more than 20,000 Detroit city retirees whose pensions hang in the balance as the city moves through bankruptcy.
The city’s biggest employee union, retirees and even a few dozen residents filed objections Monday to Detroit’s request for bankruptcy protection.
The decisions come amid concern that Detroit’s bankruptcy will make it more difficult for communities to borrow money.
Thejudge overseeing Detroit’s bankruptcy case opened Friday mornings second day of hearing by announcing that he doesn’t run city hall.
If the city’s gambit succeeds, it could jeopardize an important bargaining tool for unions, which often have deferred higher wages in favor of more generous pensions and health benefits.
This week on Michigan Matters, host Carol Cain invites Judge Greg Mathis to the interview set and the roundtable for a lively discussion on Detroit’s bankruptcy issues. Business Executive Denise Ilitch and John Truscott of Truscott/Rossman Public Relations join in the conversation.
A judge is expected to make a key decision, Wednesday afternoon. in the Detroit bankruptcy case.