Tagged: Detroit

With EM decision fast approaching, Detroit City Council will meet again tonight

Instead of voting on a proposed financial stability agreement with the state, Detroit City Council members spent much of Tuesday discussing several court challenges that could derail any agreement. They eventually adjourned without a vote on the agreement despite warnings that tabling a vote could lead to an emergency manager appointment by Gov. Snyder. Snyder's deadline to decide on an EM appointment is tomorrow. Michigan Radio's Sarah Cwiek was at the meeting and reports council plans to meet again tonight.

Last night, Deputy Mayor Kirk Lewis, who has been filling in for Mayor Bing while out on medical leave, issued this statement regarding council's discussions:

We appreciate the seriousness with which the Detroit City Council is deliberating. This is one of the most critical decisions in this City’s history. However, Mayor Bing and the administration believe Gov. Snyder will act on Thursday, April 5, according to law, regardless of any related, current legal challenges to the process.

Auto sales on pace for a strong year

It's early yet, but auto sales figures in the U.S. show automakers are on pace to make 2012 the best sales year since 2007. More from the Detroit Free Press:

New-vehicle sales ran at a 14.4 million annual rate in March, down from a four-year-high of 15.1 million in February. Still, at the pace so far, Americans would buy 14.5 million vehicles this year, up from 12.8 million in 2011. The increase equals more than six assembly plants running two shifts each.

Chrysler led all automakers in sales gains for the month of March at 34.2 percent.

Michigan's unemployment rate drops across areas of state 

Michigan's unemployment rate dropped to 8.8% last month with a slight uptick in overall employment as well.

Michigan Radio's Steve Carmody reported new data shows the decline occurred throughout the state:

Fifteen of 17 regions of Michigan recorded declines in unemployment in February, with Detroit and Monroe reporting the largest rate decreases from January to February. Flint, Holland and Jackson recorded the largest declines during the past year.

Detroit Mayor Dave Bing has been released from the hospital. Bing was first hospitalized more than a week ago, after experiencing "discomfort" after a dental appointment.

"The Mayor will recuperate at home from surgery to correct a perforated colon and is expected to be out of the office for approximately three weeks," said Bing's press secretary, Naomi Patton, in a written statement.

The Mayor continues to interact daily with his office and is engaged with ongoing City operations."

In the meantime, Bing's designee in his absence, Deputy Mayor Kirk Lewis, told City Council that the Mayor's office supports the latest draft of a proposed consent agreement from the state.

"It's ready for consideration," Lewis said this morning, adding that "It's time for a thumbs up, thumbs down" vote.

A spokeswoman for Governor Snyder says he wants a deal done as soon as possible, and says the Governor considers this Thursday a hard deadline to reach an agreement.

Update 11:06 a.m.

In addition to threatening to strike, AFSCME officials say they will also file a federal lawsuit to try and compel Detroit City Council to take a vote on the tentative agreements the unions bargained for.

Unions are also in federal court seeking a restraining order. They're trying to prevent the Detroit City Council from signing off on a consent agreement.

10:49 a.m.

Time is running out for Detroit and state officials to reach an agreement to stave off an emergency manager.

This morning, Deputy Mayor Kirk Lewis confirmed he won’t ask the City Council to approve new labor contracts for city workers.

That infuriates union leaders, who gave up historic concessions in an effort to save money and avoid an emergency manager.

Al Garrett, President of the American Federation of State, County, and Municipal Employees in Detroit, said this is about breaking unions, not Detroit’s fiscal crisis.

"People don’t have to come to work if in fact their rights are being abridged," said Garrett. "It is not unusual for strikes in the city of Detroit, and I’m pretty sure that they may be met with some stiff opposition with regards to taking away rights that folks have had for years."

Gov. Snyder has said those concessions don’t go far enough. Under a proposed consent agreement, city officials would have broad powers to skip collective bargaining and impose union contracts.

Deadline coming for Detroit

Detroit City Council is meeting today to mull over potential changes to a "financial stability agreement" with the state. Gov. Rick Snyder has said this Thursday is his deadline to decide whether or not to appoint an emergency manager for the city, but some think there might be some wiggle room. From the Detroit Free Press:

On Friday, Snyder's chief of staff Dennis Muchmore said on "Off the Record" on public TV's WKAR that "there's a little bit of flexibility that's built into the law" establishing the emergency manager process, and April 13 becomes "another target date" because of an appeal period. But in a comment that received less attention, Muchmore also said that Thursday is "a hard and fast deadline" for Snyder to decide on an emergency manager.

Michigan Radio's Sarah Cwiek reported last Friday that another court hearing on the legality of the state's consent agreement process could further muddle the process. A court hearing is set for April 9th, after Gov. Snyder's April 5th deadline.

Dow to lay off 900 workers

Dow Chemical Co. is set to lay off around 900 people in response to weak demand for its products in Europe.

The Associated Press reports the chemical manufacturer said today the positions will be cut as part of a plan to trim about $250 million in annual costs. They said they will shut down factories in Illinois, Portugal, Hungary, and Brazil, and it will idle a plant in The Netherlands.

Dow Chairman and CEO Andrew Liveris said the company made the decision to adapt to a volatile economy, especially in western Europe.

Dow says it will book a first-quarter charge of $350 million in the first quarter for severance packages, asset impairments and other items related to its cost-cutting plan.

Shares rose 3 cents to $34.67 in morning trading.

Gas prices rising

Gas prices rose about 7 cents during the past week, according to AAA Michigan. Prices are at a statewide average above $4 per gallon for the first time since last June.

From the AP:

The auto club says Monday the average of $4.04 is about 37 cents per gallon higher than last year at this time.

Of the cities it surveys, AAA Michigan says the cheapest price for self-serve unleaded fuel is in the Flint area, where it's $3.95 a gallon. The highest average is in the Ann Arbor and Marquette areas at $4.07.

AAA says Michigan's all-time high was $4.26.

Scott Martelle is a journalist and author. His new book Detroit: A Biography chronicles the history of the city from the 17oo's to the present day. He was also a former staff writer for the Los Angeles Times and the Detroit News.

Martelle believes there was a point in history when Detroit had an opportunity to diversify its manufacturing.