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Latest News - July 2012

July 18, 2012
Detroit Mayor Imposes Union Contract Changes, Wage Cuts
Source: CBS

A 10 percent employee wage cut and work rule changes are being imposed by Detroit Mayor Dave Bing under a plan to get the city’s finances under control.

Among the contract changes: Unions will now be forced to reimburse the city for salary and benefits to union officials and there will now be an 80/20 cost sharing on medical benefits.

“The city can no longer borrow, hoping to cover this deficit spending. Without action the city will shut down,” Bing told reporters on Wednesday. “This is a tough day for me, a tough day for city workers and a tough day for all Detroiters. However, it is a necessary day – but it’s still a tough day.”



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