William A. Jacobson on a public-pension case in Rhode Island:
As I postedtwo days ago, the City of Central Falls (whose slogan is "A City With a Bright Future") filed for receivership, the state equivalent of bankruptcy. . . .
The implications of the Central Falls receivership are enormous. Under receivership, the receiver has the power to modify all contracts, including union contracts.
Central Falls could be the first union domino to fall, as municipalities see receivership (or bankruptcy, if permitted by state law) as the only viable option to escape unsustainable union contracts.