Village to Village, January 20, 2010 by Paul Hatfield

As almost all of us, Paul Krekorian does not want the city to have to declare bankruptcy.  He would prefer concessions from the municipal unions that would fix the structural compensation problem that is strangling Los Angeles.  Concessions would also be preferable to Draconian layoffs that would cripple services and put thousands more on unemployment.

Although the above is not a direct quote, he clearly expressed this view at tonight’s Valley Village Homeowners Association meeting chaired by former CD2 candidate Pete Sanchez.

In his remarks, he also recognized that the unions must be made aware of the possibility of bankruptcy and its implications for their contracts – they could be voided by a bankruptcy judge.  He acknowledged the downside of bankruptcy as well – the adverse impact on the city’s credit rating and the stigma that would attach to the nation’s second largest city.

Krekorian is on the right path.  The city must negotiate with the bankruptcy card face up on the playing table and let the unions know it will be used as a trump card, if necessary.

In my view, there will be only one chance at renegotiation; our officials must play to win, or activate “Plan B.”

It appears Paul is willing to play hard.  Will the others?