One of Detroit's biggest public labor unions on Monday became the first major party to file an objection to the city's bankruptcy filing ahead of a midnight deadline for challenges, Reuters reported yesterday. The American Federation of State, County and Municipal Employees Council 25 said that Detroit has not proven that it is insolvent and has not negotiated in good faith with its creditors. In a filing with the U.S. Bankruptcy Court in Detroit, the union said it was also challenging the constitutionality of chapter 9, arguing that it encroaches on states' rights. The union also said that Michigan's emergency manager law violates the state constitution because the law does not explicitly protect retirement benefits for public workers.
To read The Michigan Council 25 of the American Federation of State, County and Municipal Employees, AFL-CIO and Sub-Chapter 98, City of Detroit Retirees’ Objection to Eligibility Under Chapter 9, click here.