1st Circ. Downs Union Challenge To Puerto Rico Benefits Cuts

Law360 (October 28, 2020, 8:25 PM EDT) -- The First Circuit said Wednesday that several laws Puerto Rico passed cutting back benefits for public sector workers were reasonable ways to weather a fiscal crisis, shooting down two unions' legal challenge to them.

To unravel the new rules, the unions had to show that changing their collective bargaining agreements was neither reasonable or necessary to address a significant government interest, and the panel concluded they hadn't made that case.

"There is no basis, however, for the unions' contention that the benefit cuts implemented by the challenged laws are unrelated to Puerto Rico's interest in addressing the fiscal challenges faced by...

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