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Can Detroit Void Union Contracts to Pay Debts?

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    Radio host Nancy Skinner sounds off on Michigan’s push to bail out Detroit.

  • Duration 4:58
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-- -- -- The City Council was supposed to vote on a bailout deal from the governor yesterday it did not take the vote to.

Government -- and methane that -- furious that the city's leaders did not act three.

The deadline is now just one day away otherwise the state will take over the city Detroit right on the brink.

And now we've got a front page editorial in today's Detroit Free Press but alleging the council to stop delaying accept the -- off but do it now says that editorial.

Radio host Nancy Skinner is in Michigan and joins us now Nancy -- -- from Michigan you know the city of Detroit very well but I believe.

You want to existing union contracts to stay don't tell come up you want to stay.

I've put it to you you do that Detroit blows up because -- -- flat broke and have no money period.

Well Stuart let's step back one and one -- once sector and look at the big picture.

What's going to thought people don't understand what's going on here.

What the governor did and the legislature is to pass this emergency financial manager threat this slot last year.

And basically what that -- it's unconstitutional.

Only the US congress can wait let me just even if it always feels -- -- do this did you.

The -- -- come -- this is in the weeks and -- Detroit hasn't.

Billion dollar bill the pensions and healthcare -- six billion outstanding debt they've run out of money.

Who says -- I need to your question sort.

-- actor who cares I will answer but it's gotta have contacts if president Obama's -- -- Arnold Schwarzenegger when he was governor of California.

Look at your financial trouble you're fired at all the contracts are Null and void.

You would have all that keep our ears and everybody up in arms this is -- its response -- -- system now to the point so that's the backdrop this and it's on the ballot is so one point one and you do Nancy.

What he wanted to -- so what I.

I think there is a financial crisis going on yeah.

And their needs to be a negotiated settlements -- listen taking the union contracts and giving giving the power to void contracts and not dissuade them but to change the terms -- like I could show you you got -- -- have -- Who pays who pays who is going to meet Detroit's bills is -- the state is it the Fed's who's gonna -- It is the -- -- state now has a surplus because -- -- turn around economists I don't know what street give them money unless they take over the city.

Unless -- -- -- of the union you're right.

It's unless the unless they say you -- gone you have no they actually double lawyers for the state store actually argued in court.

That that they're police powers to enforce the general warfare -- out welfare -- The rights of -- me as -- -- -- a person to vote for my City Council person.

They are actually that's what they're arguing that the constitution should be no unemployed because the police powers of Governor Snyder should trump that that is -- that is the cards.

-- yeah I know that's the argument I frankly think it's irrelevant.

When it -- when a city.

He's six billion in debt and -- in the last six billion dollars coming up but just a pension health benefits for retired city workers you madam on broke you awful how it broke you are a market yeah that's going.

It is it's not -- billion his kids it's it's been.

That's -- talking about the legacy costs of everything out of Kennedy's legacy costs at all -- got six billion dollars in outstanding debt and they face liability of six billion dollars the pension health benefits in the future.

Detroit does not add that I want to -- off and very similar thing it does yes and that there are.

Look somebody's gotta pay but I don't wanna pay I don't the federal -- that ain't gonna pay I don't want a bailout from the Fed's eight.

You know you you haven't homely.

How you come -- with the money.

All you've told me about these.

Is legally stick wrangling.

Between the state in the city and the unions in the lawlessness.

Will crunch timing -- CN NC.

Right at six at that legal stop -- the constitution but I -- -- -- -- you that says this brigades the constitution that Lloyds have a different view.

And so does the Detroit free press and so does the states and -- met bing is also furious that they can't get.

Agreement they need the money they don't lot.

That was the mayor does not want -- -- no one wants the emergency financial manager they wanna consent agreement they realize we are at a precipice.

And so what they're saying -- -- come together but you cannot Stuart.

The money is there the state is just using this hammer I we'll give you that money if if if you lose all of this.

It's unprecedented to take these union contracts that have been already negotiated I'll tell you what -- You gonna see a lot of this all over the country because time's up and not -- -- by the way still stands is tomorrow.

Nancy we appreciate I didn't say I know -- gonna change your car which we appreciate you being with this is another you know the story well -- -- appreciate -- --

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