MAYOR DAVE BING ANNOUNCES WORKFORCE REDUCTIONS
Delivering on his promise to take swift fiscal action outlined in his city-wide speech earlier this week, Mayor Dave Bing announced today that 1,000 (one-thousand) positions will be eliminated by February 25, 2012. The layoff notices will be delivered to employees beginning the week of December 5, 2011.
The layoffs, representing nine percent of the City's 11,000 (eleven-thousand) employees, are expected to save approximately $14 million this fiscal year. The City of Detroit faces a $45 million cash shortfall by the end of its fiscal year in June 2012 without immediate action. An additional 2,000 positions have been eliminated since the Mayor took office in 2009.
In addition, Mayor Bing has ordered an immediate hiring freeze for all Civil Service positions. In order to comply with a November 4, 2011 court order, the hiring freeze will not apply to the Detroit Water and Sewerage Department.
“Solving our cash crisis requires a combination of concessions and tough cuts,” said Mayor Bing. “Layoffs will be strategic. We will limit the impact on residents, protecting core services like police and fire protection as much as we can. Our fiscal crisis will require everyone to share in the sacrifice. We need support from our residents to help push our unions, businesses, vendors and elected officials to enact the common-sense changes we need.”
In addition to workforce reductions, Mayor Bing has outlined the concessions necessary to stem the City’s cash shortage, return the city to fiscal stability in the long-term, and prevent an emergency manager from running the City. Those steps include approximately $40 million in savings from:
- Elimination of furlough days, with implementation of a 10 percent across the board wage reduction for all city employees - including public safety, for those employees whose pay hasn't already been cut by 10 percent at the start of this fiscal year.
- Changes to existing healthcare coverage including a 10 percent increase in employee contributions to their coverage.
- Pension reforms that will make the city more competitive with other municipal plans including reducing excess payouts from the system.
- Reform to work rules that will reduce overtime costs and streamline operations.