Portside

Harold Schaitberger, general president of the International Association of Fire Fighters based in Washington, said, "Going forward, this is as much about politics and the priorities of public officials as it is about bankruptcy and the court." Schaitberger said that elected officials in the United States are expected to continue to "push for austerity no matter the cost to the lives of workers and public safety."

This article outlines some of the basics of U.S. bankruptcy law and how it relates to worker rights. I will review the current law and some history, and then go into detail about how bankruptcy affects unions. I then offer some ideas of what workers and unions can do to protect themselves under bankruptcy.

The American Federation of State, County and Municipal Employees Council 25 said Detroit, which last month filed for what would be the largest-ever U.S. municipal bankruptcy, has not proven it is insolvent and has not negotiated in good faith with its creditors. In a filing with the U.S. Bankruptcy Court in Detroit, the union said it was also challenging the constitutionality of Chapter 9 of the federal bankruptcy code, arguing that it encroaches on states' rights.

The bankruptcy will enable an appointed judge to impose further cuts to city expenses and to void union contracts. A prime target for cost-cutting is the pensions owed to 21,000 city retirees and 9,000 active workers.