Detroit unions hear city manager restructuring plans to cut benefits and pensions
Thu, 20 Jun 2013 17:06:29 GMT —
DETROIT (AP) - Union leaders are meeting with members of Detroit emergency manager Kevyn Orr's team to hear plans to cut into health care benefits and pensions as part of city debt restructuring.
The Thursday meeting at City Hall follows a session Orr held last week where he asked Detroit's creditors and debt holders for deep concessions.
Orr has warned that without millions of dollars in concessions on bond and pension debt the city risks going into municipal bankruptcy.
Orr is a bankruptcy expert, and Michigan hired him in March to fix Detroit's finances. The city's budget deficit is approaching $380 million. Orr has said long-term debt could top $17 billion.
He also issued an order Thursday for an investigation into possible waste, fraud and corruption in the city's employee benefit programs.
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