Policy: Budgets & Deficits

Detroit's largest union, city sign new contract

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DETROIT (AP) — A representative of Detroit's largest union and the city's emergency manager signed an agreement reached during the ongoing municipal bankruptcy case.

American Federation of State, County and Municipal Employees official Ed McNeil and Detroit Emergency Manager Kevyn Orr took part in Friday's signing ceremony.

AFSCME Council 25's members and other unions completed voting on the tentative contracts this week. Mediators in mid-June announced the tentative deals.

According to The Detroit News, Orr says he "could not be prouder of the efforts people made to get us here."

The five-year labor agreements promise to restore wage cuts workers took as the city careened into the nation's largest-ever municipal bankruptcy.

The Detroit Free Press reports that under the new contracts, workers will receive a 5-percent pay raise as of July 1.

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