VALLEJO, Calif. (KCBS) -- The city of Vallejo’s bankruptcy has become a case study for a Washington-based think tank, and a new report argues that skyrocketing labor costs were primarily responsible for the city’s economic demise.
Vallejo’s bleak financial picture is now part of a new study from Washington D.C. that focuses on labor costs and their impact on the city budget.
KCBS' Dave Padilla reports
The report by the Cato Institute, a conservative think tank, says to avoid collective bargaining whenever possible.
The report says Vallejo is an example of what happens when labor costs spiral out of control.
Ken Jacobs of the UC Berkeley Center for Labor Research says the claims in the report don't stand up.
"The Cato Institute has always had a position against unions, so it's not a surprise that's a conclusion they would come to in their research," he said.
(ewi)
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