Emergency manager imposing 10% wage cut on Detroit teachers

Jul 29, 2011

Public school teachers in Detroit are getting a wage and benefit cut.  The state appointed emergency manager informed Detroit Public School unions this morning that he is imposing a 10 percent wage cut this year.   Emergency Manager Roy S. Roberts is also imposing an 80/20 split on health care benefits.    

The move is expected to save the district nearly 82 million dollars this year.  

Roberts issued a written statement explaining the need for imposing the concessions. 

“The number one priority is providing the children of Detroit Public Schools with a quality education. For that to happen, the school district must be financially sound This is not about one employee group versus another, and we recognize the extremely valuable and hard work of our staff in every area...these wage concessions and health care cost-sharing plans are being implemented because we are in an extremely difficult financial period for Detroit Public Schools, requiring extreme measures to deal with the broad, generalized economic problem and these measures are specifically designed to address the financial emergency for the benefit of the students and our schools."   

Roberts has met with union leaders more than 40 times this summer to discuss wage and benefit concessions.  

Detroit teachers have opposed the wage and benefit cuts since they were first proposed in June. It’s unclear what, if any, actions the teachers can take to prevent the cuts from taking effect. 

Here's a breakdown from the Detroit Public School District on the wage ane benefit cuts announced today:

 

 

 

 

About the $81.8 million cost-savings:

 

For the Detroit Federation of Teachers, the district will require a ten percent (10%) wage concession and redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans. The district will also suspend payments for any sick days remaining unused at the time of an employee’s retirement; suspend implementation and payment of any annual increments; suspend payments for oversized classes to teachers kindergarten through grade twelve; suspend payment of any Longevity Bonus; suspend payment for any preparation periods lost by the teachers; suspend payments of any certification bonuses; suspend any premium payments for special education personnel; and suspend payments of any assault pay.

The wage and compensation structure of all employees of the District represented by the American Federation of State, County and Municipal Employees shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; (c) suspend payments by the District for any sick days remaining unused at the time of an employee’s retirement;  and (d) suspend payment of any Longevity Bonus.

The wage and compensation structure of all employees of the District represented by the Detroit Association of Educational Office Employees shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; (c) suspend payments by the District for any sick days remaining unused at the time of an employee’s retirement;  and (d) suspend payment of any Longevity Bonus.

The wage and compensation structure of all employees represented by the International Union of Operating Engineers, Non-Instructional Supervisory Personnel shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; and (c) suspend payments by the District for any sick days remaining unused at the time of an employee’s retirement.

The wage and compensation structure of all employees represented by the Organization of School Administrators and Supervisors shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; (c) suspend payments by the District for any sick days remaining unused at the time of an employee’s retirement; and (d) suspend payment of any Longevity Bonus.

The wage and compensation structure of all employees represented by the Detroit Federation of Paraprofessionals-School Service Assistants shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; (c) suspend payments by the District for any sick days remaining unused at the time of an employee’s retirement; (d) suspend implementation and payment of any annual increments; and (e) suspend payment of any Longevity Bonus.

The wage and compensation structure of all employees represented by the Police Officers Association of Michigan shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; (c) suspend payments by the District for any sick days remaining unused at the time of an employee’s retirement; (d) suspend implementation and payment of any annual increments; and (e) suspend payment of any Longevity Bonus.

The wage and compensation structure of all employees represented by the Police Officers Labor Council shall be changed to: (a) require a ten percent (10%) wage concession; (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans; (c) suspend implementation and payment of any annual increments; and (d) suspend payment of any Longevity Bonus.

The wage and compensation structure of all employees not represented by any collective bargaining units shall be changed to: (a) require a ten percent (10%) wage concession; and (b) redesign the health, dental and vision care plan contributions to require a twenty percent (20%) employee premium contribution, as well as other additional amounts currently required to be paid employees who chose a non-HMO medical plan, and a twenty percent (20%) employee premium contribution for all dental and vision plans.