Detroit's emergency manager indicates for the first time that he may end collective bargaining with city employees as part of his effort to shore up the city's sagging finances, Steve Neavling reports for Reuters.

Kevyn Orr, a former bankruptcy lawyer, alerted state labor officials on Thursday that he has no legal requirement to bargain or participate in compulsory arbitration with Detroit's public safety unions.

The statement by Orr, sent in letters to state employment relations officials, is his first public indication that he actively is considering exercising some of the most sweeping powers granted to him under the 2012 state law that created the position of emergency manager.

Detroit has agreements with some 48 unions, and outside analysts say the city needs concessions from organized labor if it is to restore public finances devastated by a shrinking population and high unemployment.

Read more: Reuters