Bankruptcy

Bolger: Unions Must Ante Up In Detroit Bankruptcy Deal Before The State Pitches In

April 18, 2014, 4:22 PM

In what appears to be a complication in the already complex Detroit bankruptcy, unions representing city of Detroit employees must put up cash toward a settlement before the Legislature will vote on a proposed $350-million state contribution toward settling the case, House Speaker Jase Bolger said Friday.

Paul Egan reports in the Free Press Bolger said it’s up to the unions to come up with proposals for how much they should contribute to the so-called “grand bargain,” but “it should be material and it should be reflective of what everyone else is doing,” he said.

While individual retirees and union members will be contributing to the settlement through pension concessions -- without making cash contributions -- the unions themselves will not be, Egan writes.

And Bolger said the Legislature won’t vote on the $350 million until the unions also make contributions and “I have received word from different people ... that there doesn’t appear to be a lot of interest, and I find that very disappointing.”

Union leaders could not be reached.

 

 


Read more:  Detroit Free Press


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