CHICAGO — Detroit has reached a settlement with a coalition of unions on five-year collective bargaining agreements, the bankruptcy court mediators announced Monday morning.
The deal is with the Coalition of Detroit Unions, which includes AFSCME, the city's largest unions, comprised of 17 locals, and 13 other unions. The agreement is in principle on major aspects of five-year CBAs, the court said. Details were not released.
The mediators called the terms "fair and balanced," and said they "provide security for union workers and, at the same time, provide an economically feasible agreement for the city as it emerges from bankruptcy."
The settlement will be incorporated into the city's overall plan of debt adjustment.
"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 which can be incorporated into a fair and balanced agreed-upon Plan of Adjustment to be presented to the Bankruptcy Court for confirmation," the mediators said in the statement.
The city is quickly picking up settlements with its creditors. It's reached deals with its unlimited-tax general obligation bondholders, and its two pension funds. On Friday, it announced a deal with a court-appointed committee representing retirees.
Among the standouts who have not yet inked a deal: limited-tax general obligation bondholders, bond insurers Financial Guarantee Insurance Co. and Syncora Guarantee Inc.
Full story to follow.