Detroit secured a new five-year collective bargaining agreement with the city's EMTs and paramedics union, the city announced Thursday.
It is the first successfully negotiated bargaining agreement under Emergency Manager Kevyn Orr since the city filed for Chapter 9 bankruptcy in July.
Under the new contract, EMTs and paramedics in the Police Officers Association of Michigan union accept a 10% wage cut, which is imposed on all city employees. The union also accepts a pension freeze and transfer of employee pensions to a defined contribution plan.
Employees under the deal also agree to enter the city's restructured health plan. Under that plan, annual deductibles for Detroit's active city workers will rise to $750 annually from $200 and family plans will see annual out-of-pocket costs rise 50% to $4,500 from $3,000.
Retirees over 65 would transition to Medicare under the proposed health-care plan.
The union members will see 2% wage increases annually, beginning in January, as well as the reinstatement of a workers compensation supplement.
The agreement will run through June 30, 2018.
“This five-year agreement shows that unions and the city can work cooperatively to reach a positive solution that moves Detroit forward, even in bankruptcy and under an emergency manager,” Mr. Orr said in a statement. “This is an important first step between the city and its represented workforce, and I hope it serves as model for contract discussions with our other union partners.”
The proposed agreement requires approval from Michigan Treasurer Kevin Clinton before it's fully ratified.