DETROIT (WWJ) – Union leaders and city workers converged on the Detroit City Council on Monday as members debated wage cuts and other changes for Detroit’s unionized workers.
Last week, the city’s financial advisory board approved Mayor Dave Bing’s proposal to implement the changes, and council members could vote as early as Tuesday.
The City’s Chief Financial Officer, Jack Martin, says the Detroit Police Department’s contract offers more than the contracts at the auto companies. “And I think it’s safe to say it’s better than GM, Ford and Chrysler,” Martin said.
The plan calls for putting in place savings that include a 10-percent wage cut and significant changes to health care and work rules.
Mayor Bing issued a statement Monday afternoon calling for an immediate vote by the council on the new terms.
“Last fall, I stood with City Council and together we agreed that the city must be governed by its elected officials. To that end, the majority of the City Council voted in favor of the Financial Stability Agreement, including the labor terms as outlined in Annex D, which the state deemed acceptable. Those terms have been satisfied in the City Employment Terms approved by the Financial Advisory Board and sent to Council last Friday.
“Any delay in acting on the City Employment Terms places the city into a deeper cash crisis, resulting in an inadequate cash flow to make payroll, to pay vendors, and will represent a default in the Financial Stability Agreement – ultimately, triggering the appointment of an emergency manager by the state.
“In order to maintain governance of the city and meet the city’s budget obligations, it is incumbent upon City Council to act now. Therefore, I am calling for an immediate vote by City Council on the City Employment Terms,” Bing said.