Detroit Mayor Dave Bing and leaders of the American Federation of State, County and Municipal Employees, which represents about a quarter of all city employees, continue to be far apart in negotiations, the Detroit News reports. Bing says more layoffs will be necessary due to the union’s failure to accept other concessions in their contract.
Bing said the city has presented its final offer to the American Federation of State, County and Municipal Employees Council 25, which represents about 3,500 of the 13,000 workers. But he said the union has rejected any concessions, including his call for a 10 percent pay cut.
“They won’t agree to it,” he said, adding six other unions have ratified similar concession agreements…
Bing had vowed to lay off 1,000 workers by the end of September if unions didn’t agree to pay cuts. But he backtracked, and eventually laid off 230 employees on top of the 206 his administration has let go. Nonunion managers and appointees also have had 10 percent pay cuts.
The city’s financial woes will grow worse if the state budget still being worked out for the next fiscal year includes an 11 percent cut in revenue sharing. Detroit stands to lose about $38 million if those cuts stand. Both houses of Congress voted for the general government operations budget, which includes those cuts, late Wednesday night.