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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhat Happens in Detroit Won't Stay in Detroit
Its amazing, the stuff you can find on the Internet these days. Step-by-step instructions for all sorts of things, including oh, yeah how public employers can relieve themselves of retirement obligations through the Chapter 9 bankruptcy process. Like theyre trying to do in Detroit, right now. And reading through Ice Millers description of the process right here, if youre interested it sure doesnt seem all that hard.
http://www.icemiller.com/pdf/Chapter9_Bankruptcy_Benefits.pdf
And then theres the timeline.
Im not even going to try to figure out which chicken came before which egg. The newest emergency manager law became effective in March. The law firm Jones Day was awarded a $3.35 million contract as Detroits restructuring counsel in March. Jones Day partner Kevyn Orr was named Detroits emergency financial manager in March. (Or maybe by then he was a former partner? Attorney Orr resigned from the firm sometime in March.) Different media reports give different dates; and from this many miles away, its impossible to figure out what happened in what order.
And then theres the law firm.
Im human; I cant help but sometimes judge a law firm by its clients. And Jones Days client list includes Koch Industries, as well as Mitt Romneys old firm, Bain Capital.
And then theres the lawsuit, filed by Jones Day lawyers, challenging a ban on political contributions by foreign sources (including foreign corporations). And then theres the lawsuit, filed by Jones Day lawyers not long before last years election, challenging an Obama administration regulation regarding insurance coverage. (Also cant help but wonder at all the work this law firm is apparently doing for free!)
And then theres the attorney.
According to his official bio, Attorney Orr worked for the FDICs Resolution Trust Corporation in the 1990s; and while there, his duties included serving as the agencys chief lawyer responsible for the agencys participation in the Whitewater investigation. Yeah, you read that right: the Whitewater investigation.
Starting to think that maybe theres politics involved here, somehow?
And then theres the Governor.
Last December was a busy month for Gov. Rick Snyder. Not only did he push through a new emergency manager law, to replace the one rescinded by voters, he also pushed through a Right to Work bill. Read GOP, Koch Brothers Sneak Attack Guts Labor Rights in Michigan here. (Yes, theres the Koch brothers, again.) He was so effective at pushing stuff through the Legislature that the Washington Post named him The Scott Walker of 2014.
Got a headache yet?
The big trouble here is, whatever happens with Detroit with its very expensive law firm, with its history of highly-political cases
whatever happens in Detroit will set a legal precedent for other politicians and other employers who may want to relieve themselves of their obligations to public workers. Yesterdays USA Today even has an interactive graphic; read Detroit not alone under crushing pension obligations here.
So
you think youve got retirement benefits? Think again.
That Ice Miller report has a state-by-state breakdown of the requirements to go through the Chapter 9 bankruptcy process. Including a note that, when the report was published, Michigan didnt have any law authorizing a municipality to declare bankruptcy. Which it didnt, until Governor Snyder and the Republican-led Legislature pushed through The Local Financial Stability and Choice Act last December
just days after pushing through the Right to Work bill.
If its happening in Detroit, it can happen almost anywhere.
http://nhlabornews.com/2013/07/what-happens-in-detroit/
Demeter
(85,373 posts)and Snyder is beginning to show his real face.
That POS was a real stealth candidate, but now comes the acid test: election in November. It could all unravel in 10 months. I sure hope it does. I love Michigan, but the GOP is destroying it.
BelgianMadCow
(5,379 posts)is "we can all be Greece really fast".
Thanks for posting. I'm sure sooner or later people on this side of the pond will get ideas as well.