Detroit? Calling it "a tough day for all Detroiters," Mayor Dave Bing today announced he has imposed sweeping cuts to city unions as required by the state under its consent agreement to restructure the city's finances.
The swift decision by Bing comes one day after the City Council voted 5-4 to reject the cuts. The changes, which have angered union leaders and members who have flooded council hearings, are expected to save the city $102 million.
"This is a tough day for me, a tough day for city workers and a tough day for all Detroiters," Bing said in a news conference. "However, it's a necessary day."
The mayor said the decision, although arduous for him and his administration, was the only choice because the city was spending $150 million a year in excess of cash received and the "difference was covered by annual multi-million dollar borrowing."
"The city can no longer borrow hoping to cover the deficit spending," he said. "Without action, the city will simply shut down."
At least one union leader says he's not surprised, and the issue will go to court.
"I'm not surprised, but I don't think it will hold up," said Greg Murray, vice president of the Senior Accountants, Analysts and Appraisers Association.
"It violates the state constitution (and) various statues of the (Public Employees Relations Act) that are still in effect. Quickness to do it is another example of (Bing's) mean-spiritedness. This will have to be resolved in the courts and we'll see how that plays out."
Bing praised the four council members ? Council President Pro Tem Gary Brown and members Kenneth Cockrel Jr., James Tate and Saunteel Jenkins ? who voted for the measure. He said those who opposed the measure ? Council President Charles Pugh and members Brenda Jones, JoAnn Watson, Kwame Kenyatta and Andre Spivey ? "are not concerned about the financial stability of the city."
William "Kriss" Andrews, the city's new program manager, said the city will inform the affected unions today about the cuts. The implementation of the wage reduction will be done over the next three or four weeks and the health care changes will take somewhat longer, he said.
The changes will affect unions whose contracts have expired, or about 35 out of the city's 48 unions. It does not affect unions such as those with the Detroit Department of Transportation that receive some federal dollars, city officials said.
Bing said he expects there will be legal challenges to the move, but added, "I think it would be the wrong thing for us to do and sit back and do nothing. We have to act and we have to act now."
Jack Martin, the mayor's chief financial officer also hired under the consent agreement with the state, said he knows the city's decision is "painful on our employees" but city officials must make these changes to save Detroit from running out of cash.
"But this allows us to fix the problem in an orderly manner," he said. "If we do nothing, there will be chaos."
The mayor said he didn't feel like he betrayed the unions when he had to return to the unions to ask for more cuts after agreeing to what he termed at the time "landmark" concessions last spring. The state, he said today, wouldn't accept the terms ? especially in the areas of work rules ? and the unions knew he was in a tough spot.
"None of us, not me or anyone in my administration, takes any pleasure in this decision," Bing said. "I know this represents a hardship and sacrifice for many city workers. But as I've said before, I must make the decisions for all Detroiters."
lfleming@detnews.com
(313) 222-2072
Source: http://www.detroitnews.com/article/20120718/METRO01/207180385/1006/rss01
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