Historically, the City of Detroit treated the compensation for firefighters injured on duty, referred to as “Js-time,” as non-taxable sick pay, allowing firefighters to receive refunds on withheld taxes. However, in December 2020, the City announced it would classify Js-time as taxable income effective January 1, 2021. The Detroit Fire Fighters Association demanded bargaining over this change and requested related information. The Association also fled a grievance and an unfair labor practice charge when the City failed to respond.
In May 2022, the Association proposed a compromise: Js-time pay equivalent to 80% of wages (matching worker’s compensation benefits) would remain non-taxable, while the remaining 20% would be taxable. The City did not respond. Later, the parties reached a settlement in Bankruptcy Court, where the City agreed to bargain over Js-time in exchange for the Association withdrawing its grievance and unfair practice charge. The Association made significant concessions, including relinquishing claims for retroactive relief.
The parties held three bargaining sessions in September and October 2022. The Association reiterated its May proposal, but the City maintained a fixed position, refusing to consider any alternative that would place injured firefighters in a better financial position than active-duty firefighters. The City argued such arrangements would incentivize injuries and violate Michigan law. The Association accused the City of surface bargaining, claiming the City entered negotiations with a “closed mind” and drew a “line in the sand.”
The Michigan Employment Relations Commission (MERC) upheld the ALJ’s finding that the City violated the Public Employment Relations Act (PERA) by failing to bargain in good faith. MERC emphasized that good faith bargaining requires an “open mind and a sincere desire to reach an agreement,” assessed under the totality of the circumstances. Here, the City secured significant concessions from the Association but refused to offer counterproposals or flexibility, maintaining an inflexible stance throughout negotiations. Tis conduct, coupled with the City’s failure to engage meaningfully, demonstrated bad faith. However, MERC reversed the ALJ’s finding that the City violated PERA by failing to timely provide requested information, as the Association had withdrawn that claim during proceedings.
Upon the Union’s request, MERC issued a cease-and-desist order directing the City to bargain in good faith over Js-time.
City of Detroit, 38 MPER ¶ 28 (MERC 2025).