"Immediately after San Jose's Measure B passed last week, the unions filed a court challenge against the initiative.... In the private sector, employers can reduce employee-pension benefits going forward, but in California, anyway, the courts have prohibited benefit reductions for public employees.... Mayor Chuck Reed explained in response to the union lawsuit: 'Measure B was carefully crafted to follow California law. San Jose is a charter city and the California Constitution gives charter cities "plenary authority" to provide in their charters for the compensation of their employees. San Jose's City Charter reserves the right of the City Council and the voters to make changes to employees' retirement benefits[.]'"

MORE >>