Detroit bankrupt, trade union reacts

This video from the USA says about itself:

June 2008

Detroit was once the symbol of America’s industrial power; the birthplace of Ford, the assembly line and the home of GM. But now it feels more like a ghost town littered with abandoned buildings.

In 1913 Detroit was booming but when the Great Depression hit, this abruptly ended. Between 2006 and 2008 four of GM’s plants in Michigan closed, and more than 15,000 are homeless in the city. “There’s no work in Michigan… all you see is vacant houses” explains one homeless resident. As industries move to areas with cheaper labour, former assembly line workers and buildings are left useless.

From daily News Line in Britain:

Saturday, 20 July 2013

DETROIT GOES BUST – Democracy suspended! says US union leader Saunders

US federal and local government workers union AFSCME President Lee Saunders has slammed Michigan Governor Snyder for ‘suspending democracy’ in Detroit and filing for the city’s bankruptcy.

Saunders issued the following statement on Thursday: ‘Governor Snyder’s plan to suspend democracy, drive one of America’s largest cities into bankruptcy and deprive workers of their hard-earned retirement security, moved dangerously closer to reality today when, without a single negotiation with unions, workers or retirees, Snyder authorised Detroit’s financial manager to file for bankruptcy.

‘Despite assurances from Snyder’s hand-picked financial manager Kevyn Orr, that AFSCME would have ample opportunity to discuss alternatives, they unilaterally embarked on this treacherous path without meaningful input from those who would be most affected.

‘Orr had threatened weeks ago that the pension benefits earned by city retirees through their years of public service, and in exchange for less pay, could not be protected in bankruptcy.

‘Now it appears he and Governor Snyder are working hard to make good on that threat. Detroit’s public service employees worked hard and played by the rules, and now their freedom to retire with dignity is in peril.

‘As recently as two weeks ago, Orr’s team refused AFSCME’s request to meet and discuss retirement issues. Just last week, Orr’s team claimed the union would have “months” to address these issues, and that meetings would soon be scheduled to do so.

‘This apparently wasn’t the governor’s true intent. According to published reports, Governor Snyder expressed disappointment with this pace to Orr on Monday, July 15, and the very next day, they began the process to rush Detroit into what could be a lengthy and what surely will be a very costly process.

‘It’s no secret why Orr and Snyder are in such a hurry: a Michigan court is scheduled on Monday to decide whether Orr and Snyder are using bankruptcy as a backdoor around the state constitution’s protection of pension benefits.

‘Clearly, the Governor and the financial manager are eager to sacrifice the well-being of tens of thousands of workers and retirees, in violation of Michigan’s state constitution.’

DETROIT, once the motor car capital of the USA where hundreds of thousands of workers used to flock looking for good jobs in the Big Three car plants of Ford, GM and Chrysler, has become the largest US city ever to file for bankruptcy, with debts of at least $20bn: here.

In an effort to keep Detroit out of bankruptcy, two public service workers – Gracie Webster, who is retired, and Veronica Thomas, who is a current employee – filed a lawsuit this month against Michigan Gov. Rick Snyder, State Treasurer Andy Dillon and the state of Michigan. The case was filed in Ingham County Circuit Court.