The grand plan is looking grander today.
The federal mediators for bankruptcy court issued a statement Monday evening saying that The Michigan Building and Construction Trades Council labor union has vowed to contribute money to the health care of the city of Detroit retirees.
In a statement issued Monday night via email, the mediators said:
The Mediators are pleased to announce that a coalition of the building and construction trades and their supporters, through the Michigan Building and Construction Trades Council, will be participating in the so-called “Grand Bargain” by making material contributions toward health care costs for Detroit’s retirees. All of the funds that are contributed will be used specifically for this purpose.
The Michigan Building and Construction Trades Council represents a broad- based consortium of numerous affiliated unions in Michigan’s building and construction industry. It is hoped that other labor organizations will soon come to the table and support this effort to assist Detroit’s retirees in meeting their health care costs.
As with all of the contributions to the Grand Bargain, the trade unions’ participation is contingent upon full funding of the Grand Bargain by the Foundations, the State and the DIA. The Mediators wish to express their deep appreciation to all of the members of the Michigan Building and Trades Council and their supporters who are participating in this unprecedented effort to assist retirees with their health care needs.
The news is music to the ears of House Speaker Jase Bolger, R-Marshall, who has been insisting that labor unions step up and contribute to what has been called the grand bargain pool of $816 million to help Detroit pensioners. Under that plan, money is supposed to come from foundations, philanthropists, the museum and the state of Michigan. The state's is supposed to toss in a lump sum of about $195 million.
The union contribution might make it more palatable for lawmakers like Bolger to vote in favor of providing state funds.
Bolger released a statement Monday night, according to a report in the Detroit News:
“Detroit’s recovery will require all hands on deck and I am grateful to see these union organizations stepping forward to take a seat at the table. This leadership is important as the full picture of the plan for Detroit's success continues to comes into focus.”
