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Detroit Reaches Deal With City’s Largest Union

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Downtown Detroit, looking south on Woodward Avenue. (Credit: Bill Pugliano/Getty Images)

Downtown Detroit, looking south on Woodward Avenue. (Credit: Bill Pugliano/Getty Images)

DETROIT (WWJ/AP) – Detroit has reached a tentative deal with unions that represent thousands of employees in the bankrupt city.

Mediators announced Monday that the city and the Coalition of Detroit Unions have agreed in principle on the “major aspects” of a five-year collective bargaining agreement.

The coalition is comprised of the American Federation of State, County and Municipal Employees, the city’s largest union, and 13 other civilian unions.

All agreements are subject to ratification by union members.

In a statement, the mediators say the terms are “fair and balanced” and provide security for workers and economic feasibility for Detroit.

“The settlement was reached after intensive negotiating sessions over the past several months in which the parties’ interests were fully and vigorously represented by counsel and all issues robustly negotiated,” the statement reads.

“The Mediators are privileged to have assisted the parties to find common ground in reaching a resolution that reflects not only a viable, sustainable relationship between the City and its employees, but also recognizes the important service that City workers provide to the residents of Detroit. As the mediation process accelerates and more and more creditor groups reach agreement with the City, the Mediators hope that this settlement will encourage all of the remaining parties to the bankruptcy to re-double their mediation efforts to reach meaningful agreements…” [Read the complete statement HERE].

Terms were not released.

Detroit hopes to exit bankruptcy by the fall, but the city’s plan first must face a series of court hearings this summer before Judge Steven Rhodes.

[Detroit Bankruptcy: Complete Coverage]

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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