Detroit City Council votes to reject planned union cuts

Council votes 5-4, but Financial Advisory Board could still impose new contracts after 30 days

Published On: Jul 17 2012 02:03:25 PM EDT
DETROIT -

The Detroit City Council on Tuesday voted to reject planned cuts to city employee union members' contracts as part of a consent agreement plan.

The city agreed to a consent agreement with Michigan in April, and has since been maneuvering it's way to financial stability.

Complete coverage: Detroit's financial crisis

Detroit's chief operating officer, Chris Brown, had said at a meeting Monday that a 10 percent pay cut and forcing employees to pay 20 percent of their health care premiums, among other things, were necessary to keep the city afloat. He said the cuts were "unfair" but "necessary." The concessions were approved through the city's newly-created Financial Advisory Board.

Council voted 5-4 against the new contracts. However, the cuts could still happen without council's approval after 30 days, according to the consent agreement.

City Council President Charles Pugh said a fight in court could be ahead for the two sides.