Busted! Union Contracts Expire, FAB 9 Roll Out Plan.

Get to work. That’s what supporters of the consent agreement have been hoping the nine-member Financial Advisory Board (FAB) would do after the legal storm brought by Detroit’s Corporation Council Krystal Crittendon cleared.


Well, it has. The FAB 9 have, in fact, been at work for some time, it seems. One of the products of their labor is a 62-page blanket contract for city unions called City Employment Terms, or CET.


The conditions of the CET have been called “union busting” by union representatives. But union busting or not, the city simply can’t afford to maintain old union agreements while facing financial straights.


Union contracts for most of the city’s unions expired June 30 and the city is set to implement new contracts today, leaving the door open to the FAB (that was appointed under the PA4 consent agreement) to make sweeping changes to unions across the city.


The CET is slated to become the one contract that governs nearly all 40 city unions that previously, each had individual contracts with the city.


And under the CET, no strikes are allowed.


The VoiceofDetroit.net reports:


“The CET bars strikes although at the same time the consent agreement says city workers will no longer be covered under the Public Employee Relations Act, which while providing some protections for workers, has been the chief mechanism to bar strikes.”


That’s a double whammy on strikes, just in case workers get mad and want to, er…, strike.

 The CET also proposes that all city workers will be subject to a 10 percent pay cut, no more furlough days or annual longevity payments or merit and step increases in pay.

Sound familiar? Well, these cuts mimic the ones Mayor Dave Bing was trying to impalement three years ago but couldn’t get unions to budge on. Apparently unions wanted to go the hard way. Since the mayor couldn’t do it, the state will. The CET cuts are deeper than what Bing was proposing in 2009.

The CET also says workers will still contribute five percent of their annual pay to a retirement plan, but the workers’ contributions will be considered the city’s contributions, eliminating the city’s obligation to pay separately into the fund, according to VoiceofDetroit.net.

Under the CET there is no guaranteed lunch hour, just two 15-minute breaks.

That’s not all, folks.

The Detroit News reports:

“In addition to the pay cut, the new contract calls for about $52 million in savings by changing the city’s health care plan. The plan will eliminate dental and vision coverage for retirees, and increases co-pays on insurance. The contribution from employees on prescription drugs also increases.”


How will union workers react? They can’t strike, but there is bound to be some sort of outrage. The City Council will be meeting at 1:30pm today to discuss the CET. Stay tuned as the coverage around this unfolds.


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