Tag Archives: Stockton employee contracts up for re-negotiation

Stockton Chapter 9 proceedings result in retiree’s “giving up” $550 million in benefits

7 Dec

 

I’ve been trying to follow the proceedings in Stockton, where the city is currently negotiating a Chapter 9 bankruptcy with the court.  I found the court reporter’s word-for-word report of the most recent October 30 hearing, it’s really interesting:

http://www.stocktongov.com/files/COS_Chapter9_ConfirmationHearingTranscript_2014_10_30_DRAFT_61pages.pdf

On page 13, the judge acknowledges that significant changes were made to Stockton’s employee contracts, regarding the payment of “employee share”. He doesn’t offer all the details, but on page 16 or so he says it amounts to around $550 million in “unsecured claims” that retirees will now pay themselves. 

As with Vallejo, the cops were the biggest problem, but he says they’ve now reached agreement with the city. We’ll have to keep an eye on that, Chico will very likely be headed in a similar direction within the next two to four years.