Jul 24, · DETROIT (AP) — A federal judge agreed with Detroit on Wednesday and stopped any lawsuits challenging the city's bankruptcy, declaring his . The city of Detroit, Michigan, filed for Chapter 9 bankruptcy on July 18, It is the largest municipal bankruptcy filing in U.S. history by debt, estimated at $18–20 billion, exceeding Jefferson County, Alabama's $4-billion filing in Detroit is also the largest city by population in the U.S. history to file for Chapter 9 bankruptcy, more than twice as large as Stockton, California. Oct 02, · Detroit and its largest firefighter union reached a tentative contract agreement that, if approved by the rank and file, would clear out the last major labor holdout as Detroit fights to emerge.
They are now being used to shred the rights of public sector workers, 78 percent of whom still have pensions. The bankruptcy process will aid Orr—an unelected front-man for the banks—in selling off city assets, privatizing services, and reorganizing the city in the interests of the corporate and financial elite.
The entire operation is aimed at maximizing the amount the banks, bond insurers and other financial institutions will extract from the looting of the city and its working class inhabitants. The Big Lie of Rhodes—echoed by Orr, Democratic and Republican politicians and the local and national news media—is that the bankruptcy process is being carried out to benefit the people of Detroit.
In reality, those responsible for the decline of Detroit and other industrial cities and towns across the country—the auto giants, the banks and their political servants in both major parties—are using the crisis caused by plant closures, mass layoffs, and budget cuts as a pretext to steal billions of dollars from workers who are in no way responsible for what has occurred.
In his ruling, the judge did not attempt to explain how gutting pensions and throwing tens of thousands of city residents into destitution, or privatizing city services and selling off its cultural treasures, will improve the health and safety of Detroiters.
This claim was challenged during the nine-day trial on the Chapter 9 bankruptcy filing over which he presided last month. His ruling was not an exercise in objective jurisprudence.
It was a political and class decision made on behalf of the corporate-financial elite. The judge strung together a series of sophistic arguments to distort the facts, circumvent the law, and arrive at a previously determined conclusion. In common with the US Supreme Court ruling that countermanded the Florida Supreme Court and halted the counting of votes in order to hand the presidential election to Bush, Rhodes's decision asserted federal supremacy to ride roughshod over the Michigan State Constitution and its guarantee of public pensions.
Its genesis, the narrative says, was hatched by a law review article that two Jones Day attorneys wrote. In essence, Rhodes ruled that no matter how fraudulent the proceedings leading up to the bankruptcy, it could still go forward. He thereby opened, no doubt intentionally, a very wide door for other cities to declare bankruptcy and proceed with their own attacks on the jobs and benefits of the working class.
This ruling underscores the fact that the entire political system—from the White House, to the Democratic and Republican parties, to Congress, to the courts—is an instrument of the financial aristocracy and is carrying out a social counterrevolution against the working class. The corporate and financial elite is able to proceed with such brazen contempt for social and democratic rights because of the cowardice and complicity of the trade unions. As was made clear in a filing last week, the unions accept the entire framework of the bankruptcy, demanding that the city proceed even more aggressively in selling off art from the DIA.
Mesaba has so far refraining from imposing wage and other cuts on employees, even though it had court approval to do that after a.
If progress is being made we don't want to upset the status quo and nor do they," says Wychor. Mesaba's union workers and supporters rallied at the federal courthouse in Minneapolis to protest a bankruptcy judge's rulings that let Mesaba impose pay cuts and blocked strikes.
Rallies were also planned in Detroit and Memphis. Mesaba has been seeking a Pilots say the airline is now looking for six percent wage cuts from them, along with other givebacks. From its mechanics, Mesaba wants an 11 percent wage cut and other concessions.
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