Proposal 1 may have been smashed but in Detroit, financial reforms sparked by the emergency manager legislation will be carried out as planned.

Just because voters struck down Proposal 1 doesn’t mean Detroit’s financial crisis was wiped out along with it. In fact, some argue that it’s quite the opposite; that without the State’s legislation to mandate emergency managers in cash-poor cities, these cities have no choice but to apply for bankruptcy, thus obliterating bond ratings and shaking the statewide economy.

With the defeat of Proposal 1 comes a new shower of questions.

Will state legislature draft up a new, similar, emergency manager law? Will any cities that already have emergency managers or advisory boards fight to keep them in place? Will elected officials, in order to avoid further financial chaos, carry on the work and advice that these state-appointed officials have given so far?

In Detroit, Mayor Dave Bing said he plans to carry out the suggested reforms that State and city appointed financial advisors laid out during the brief tenure of PA4. Bing wrote in a statement on Wednesday that the City's Consent Agreement with the State is still in place.

Bing wrote:

“I am determined to continue with vital reforms now underway in the City of Detroit, despite the defeat of Proposal 1 by Michigan voters in Tuesday’s election ... In the face of the City’s enormous fiscal deficit, I chose to negotiate a Financial Stability Agreement with the State of Michigan, rather than entertain the appointment of an Emergency Manager.  The Financial Stability Agreement, approved by Detroit City Council last April, is still in place.”

That answers a couple of the immediate questions. Detroit is one of the municipalities whose leaders are electing to keep the financial advisors appointed through Public Act 4 and the reforms they have suggested.  

There are 25 major reforms on the table as part of the consent agreement that Bing met with City Council to discuss last month. At the meeting, Bing got a positive response from the council.

“We are willing participants in the reforms," City Council President Charles Pugh said at the Oct. 22 meeting.

"You have our support," Councilman Andre Spivey told Bing regarding the reforms. "I don't see the Council being an impediment."

At the time, Councilwoman Saunteel Jenkins wanted to know if these reforms could be made Prop. 1 fell through on Nov. 6.

Bing said it didn't.

The Mayor has said that the reforms in question, which involve some compensation shifts for city employees, some reshaping of city departments and the creation of a lighting authority, are necessary for the City to be eligible for up to $80 million in bond sales from the State. Bing said Detroit could receive $10 million by Nov. 15, and another $20 million by Dec. 14 with more installments made as the City meets the reform requirements to boost bond ratings and sales.

Money is the motive for these 25 suggested reforms. Without strengthening bonding capacity Bing has warned over and over that the city will not be able to pay its employees at all, a much more grim outlook than pay cuts or a switch from salary to contract work.

Even opponents of the emergency manager law have to concede: Detroit is in dire financial straights. Just because the State can’t mandate new financial leadership is no excuse for elected officials to sit in denial while the city spins further into financial insolvency. Let’s hope our city leaders do the right thing and make the tough decisions needed.

Is it safe to assume that if we have the right leadership, we won't need Emergency Manager legislation like Public Act 4?

Labor Laws Stale? Detroit Could Redefine Labor Movement

There’s a famous slogan that goes: The Labor Movement “The folks who brought you the weekend.”

Today is the day we have set aside to honor the American workforce. And since we all belong to the workforce in some way, it’s a time to honor ourselves. But before we get drunk on beer and silly-full on barbeque, let’s reflect on not just the history, but the future of labor, especially in Detroit, a city facing gigantic labor conundrums: our very own Detroit.

And it’s not just the weekend that the American labor movement created. Thanks to the workers who started organizing in the late 1800’s through the movement’s peak in the 1930’s through 1950’s, there are laws banning child labor, a mandated minimum wage, and a 40-hour week, among other protections.

Back then, organized labor was not presumed to be synonymous with unions. It was just workers banding together to demand better conditions and pay. Unions were the famous product of this, but as stated, not the only one.

In Detroit, people are divided over the importance of unions, as we know them. In the private sector, unions have diminished greatly since the peak in the 1930s and 1950’s. But in municipalities they have stayed mostly intact.

That’s a problem in cashed-depleted Detroit, where some argue that union wages and benefits are bleeding the city dry. Some would posit that if a labor union were a car, it would be an inefficient, obsolete “clunker” best scrapped for a newer design.

Unions, ironically, have been seen as big forceful machines rather than organized workers protecting their rights.

An opinion piece in the Statesman Journal this morning titled “Labor Day Not Union Day” stated:

“Most Americans realize that Labor Day is about celebrating workers, not union bosses, but that won’t stop Big Labor’s apologists from seizing the spotlight to demand more power.”

Today, Detroit’s unions are stewing in the still before a storm. The storm being Election Day on November 6 when voters chose the fate of Public Act 4,  legislation that could dissolve collective bargaining contracts and ultimately lead to the privatization of much of the municipal workforce in cities across the state, namely Detroit.

Now the question for all of us to ponder over our labor day fare is this: How can we keep fair conditions for workers while updating or removing the traditional union model?

The labor movement is still alive today, although perhaps people are more complacent now that they have weekends and minimum wage. But there’s a lot of work to be done in redefining labor in the 21st century.

The silver lining to the painful cuts Detroit workers have coming is that maybe it will force people to organize around designing a new labor model worthy of the 21^st century.

Detroit is in a position to lead the nations union question, to take the hard times and demand new concepts, something that will work. Instead of complaining about cuts, and saying what doesn’t work, let’s focus on what does, what could, and what will.

One idea that comes to mind is the 30 for 40 movement geared to “reinvent” the workday. The idea is that people work 30 hours a week for 40 hours (or full time) pay. Because of the 6 hour workdays, people are more productive. At least that’s what Ron Healy, the man leading the 30 for 40 movement thinks.

An article on PBS.org highlighted this new concept and the man behind it:

"The trend in America is to work longer and longer hours. But Ron Healey, the Founder and CEO of 30/40, has convinced a growing list of skeptical CEOs that less is more. He's swayed a number of companies to switch to six-hour shifts and still pay workers for a full eight-hour day. Healey says the added expense of hiring more workers pays off because they're more productive, happier and -- most importantly -- loyal to the company."

Maybe Healy's onto something here. While it's by no means a perfect model that will solve the unions question, it's a step toward a new kind of thinking not forged in the fire of times long passed.