Lawsuit over pay cuts to Detroit school employees settled

Feb 29, 2012

DETROIT (AP) - Unions representing about 10,000 Detroit Public Schools employees and the district's state-appointed emergency manager have reached a settlement in a federal lawsuit over pay
cuts and health insurance contributions.

The school district says the settlement was approved Wednesday.

The unions filed the suit last year after Roy Roberts used new powers given emergency managers by state law to impose a 10 percent pay cut and 20 percent contribution to their health insurance.

State Treasury Andy Dillon approved the cuts and also was named in the suit.

Settlement terms include partial payment of accumulated sick days for employees who submit an irrevocable notice of retirement by March 19, a one-time lump sum payment of 2.5 percent of the
employee's 2011/2012 earnings and limited reinstatement of step increases.