The Detroit City Council passed a 10% pay cut for all non-union workers by a 4-3 vote today, which will be implemented through the use of 26 furlough days of unpaid leave. And this may only be the beginning of cuts for union employees as well. Crain’s Detroit Business reports:
The cut proposed by Detroit Mayor Dave Bing in response to a growing budget deficit, could have saved the city $7 million had it been implemented at the July 1 start of the fiscal year.
Bing has asked the city’s labor unions for a host of similar concessions. Last week, the mayor said he’d give the unions roughly 30 days to respond.
The city is facing a deficit around $300 million. Mayor Bing said last week that the city is in such dire straights financially that bankruptcy is a serious possibility.