Vallejo Nixes Deal With Unions, Moves Toward Ch. 9

Law360, New York (May 16, 2008, 12:00 AM EDT) -- The city of Vallejo, Calif., reportedly refused a deal with its police and firefighters' unions on Tuesday that the unions said could have saved the city from bankruptcy.

The unions announced last week that they would accept $10 million in salary cuts to ease the city's $16 million budget deficit, the San Francisco Chronicle reported on Thursday. But the city council chose not to accept the proposal during a closed session on Tuesday, City Councilwoman Stephanie Gomes told the Chronicle.

The council had voted unanimously to...
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