Police union makes bankruptcy deal; Elected officials receive 5 percent pay raise

(WXYZ) - The City of Detroit reached a tentative agreement with the Detroit Police Officers Association on a multi-year collective bargaining contract on Tuesday afternoon.

In exchange, the DPOA will encourage their members to vote "yes" on the city's bankruptcy Plan of Adjustment. 

Ballots are due on July 11.

Meanwhile, Detroit Emergency Manager Kevyn Orr gave the mayor and city council a 5 percent pay raise starting this month.

Orr's spokesperson Bill Nowling tells 7 Action News the 5 percent pay increase is the same raise that unionized workers received in 2012.

Nowling says it's intended to offset the 6 percent all employees now have to contribute toward their pensions.  

Read the full statement from Detroit bankruptcy mediators below: 

The Mediators are pleased to announce that the City of Detroit and the Detroit Police Officers Association (“DPOA”) have reached agreement on important core economic terms that will become part of a multi-year collective bargaining agreement. This agreement covers wages, health care, retention payments and pensions. The City and the DPOA have agreed to continue negotiations with a goal of reaching a five-year CBA. In exchange, the DPOA urges its members to vote “Yes” on the City’s Plan of Adjustment. Ballots are due by 5 pm Friday, July 11, 2014.

The agreement was reached after intensive negotiating sessions spanning more than nine months, sessions in which the parties’ interests were fully and vigorously represented and all issues robustly negotiated. The Mediators wish to express their appreciation to the parties, their counsel and advisors for the good faith spirit and professionalism in which they engaged each other and the Mediators in the many mediation sessions.

The Mediators are privileged to have played a role in assisting the parties to find common ground in reaching a resolution that reflects not only a fair agreement for the City, its residents, and police officers, but which will also expedite and facilitate the City’s exit from bankruptcy.

With this agreement, only a few remaining, albeit significant, disputes remain to be addressed between the City and its creditors prior to the Bankruptcy Court’s scheduled hearing on the City’s Plan of Adjustment, and the Mediators pledge to re-double their efforts to resolve those remaining issues and reach meaningful agreements between the remaining creditors.


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