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Detroit mayor imposes new contracts, wage cuts

Detroit's mayor slashed wages and reduced benefits for city workers Wednesday without any collective bargaining, one of the most severe steps taken so far as officials grapple with a crisis that has pushed the city to the brink of financial ruin.

By Corey Williams | Updated on July 19, 2012
Detroit Mayor Dave Bing (AP Photo/Paul Sancya)

DETROIT (AP) — Detroit’s mayor slashed wages and reduced benefits for city workers Wednesday without any collective bargaining, one of the most severe steps taken so far as officials grapple with a crisis that has pushed the city to the brink of financial ruin.

Dave Bing imposed the new contracts on workers one day after the City Council narrowly rejected them. He was able to bypass the council by relying on terms of a new state law that gives him extraordinary powers to help improve the Motor City’s economic health.

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