Detroit cuts union pay without bargaining; backlash possible

By Alana Semuels

Elected officials across the country are finding new ways to change their relationships with unions by suspending collective bargaining rights and declaring bankruptcy. In Michigan, another strategy – declaring a fiscal emergency – has allowed cities and states to cut union pay and change job conditions without any bargaining. Michigan’s new policy allows a financial emergency manager to impose new contracts with unions. It is essentially a way for cities and states to avoid bargaining with unions, said Marick Masters, labor and business professor at Wayne State University. “The state is giving additional power through emergency managers to handle finances outside of bankruptcy court,” he said. “That has caused a lot of parties in the state to be very, very concerned about the effect on the rights of citizens.”
 

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