Law
8:18 pm
Mon May 19, 2014

Building unions OK giving to Detroit retiree costs

LANSING, Mich. (AP) - Mediators in Detroit's federal bankruptcy case say that building trade unions have agreed to contribute to a fund to cover retirees' benefits.

On Monday, U.S. District Court released a statement from bankruptcy mediators saying that the Michigan Building and Constructions Trades council "will be participating in the so-called `grand bargain' by making material contribution toward health care costs for Detroit's retirees."
Credit Steve Carmody / Michigan Radio

Some legislative Republicans have made union contributions to the pensions a condition for state aid, designed to protect the Detroit Institute of Arts' collection from sale to cover the costs.

A state House committee is to vote Tuesday spending $195 million to help Detroit emerge from bankruptcy.

On Monday, U.S. District Court released a statement from bankruptcy mediators saying that the Michigan Building and Constructions Trades council "will be participating in the so-called `grand bargain' by making material contribution toward health care costs for Detroit's retirees."

The statement didn't disclose the amount of the contribution.

The bargain involves $816 million from foundations, philanthropists, the museum and the state.