CHICAGO — Mayor Dave Bing last week said Detroit has reached a tentative agreement with about half of its unions, which could help stave off the appointment of an emergency manager.
Michigan officials, who currently have Detroit under review for possible takeover, have said they would not appoint an EM if the city is able to reach an adequate agreement with its unions.
The review team is expected to make its final recommendation to Gov. Rick Snyder by the end of February. The timeline facing Bing is tight, as state treasury officials said they want to see a new budget plan by next week.
Bing is trying to get unions to make $102 million of cuts to avoid a $45 million shortfall by June 30.
Bing’s announcement late Thursday touted a tentative, three-year agreement with “non-uniformed” unions that represent roughly 60% of the city’s 10,000 union members.
Union leadership still needs to present the plan to its members.
The agreement does not include key concessions from police and fire unions. City officials were reportedly meeting with those unions late last week.
The agreement includes a 10% pay cut, shifting newer members to defined-contribution plan like a 401(k), and cuts to the health care plan.