An estimated 900 city of Detroit employees could see a wage boost this summer, bringing their compensation up to what’s considered a livable wage in Wayne County.
The proposed minimum wage increase to $21.45 an hour, or $44,616 a year, for full-time employees would kick in during the first full pay period of July, Mayor Mary Sheffield announced Monday, March 9. City officials expect the move will boost morale for positions with high turnover and, overall, improve the quality of life for employees who may work multiple jobs.
Sheffield announced the plan during her first budget proposal before the Detroit City Council and then provided more details at a news conference in the Department of Public Works’ Russell Ferry garage. That afternoon, she signed an executive order directing the city’s human resources department to provide information on how many full-time city of Detroit employees earn less than $21.45 an hour and the various job categories. That report is due in 60 days. The wage increase, part of the mayor’s budget proposal, must be approved by the City Council.
Sheffield said those who serve the city deserve dignity and the ability to support themselves and their families.
“My hope is that this increase in salaries, and setting the standard for livable wage, will allow all of our city of Detroit employees to afford the cost − the high cost − of going to get groceries, of basic things like gas, providing for their families, so that they are able to enjoy their quality of life,” said Sheffield, surrounded by department heads, workers and union representatives.
Here’s more information on what employees can expect.
How much is the pay raise?
Sheffield’s proposal would raise the minimum wage to $21.45 an hour ($44,616 annually) for full-time city of Detroit employees. The new wage floor would kick in on July 1, she said.
In Wayne County, the living wage − how much a full-time worker needs to earn to cover basic needs where they live − is $21.45 an hour for an adult with no children, according to MIT’s Living Wage calculator. The minimum wage set by the state of Michigan is $13.73.
Human Resources Director Denise Starr said some employees will see an increase of up to $5 an hour based on what they are making. The increase will depend on workers’ current pay range.
“We have a very high turnover in these types of positions and this is going to help us to attract and retain and, hopefully, also help the families,” Starr said.
Who will see the raises?
An estimated 9% of city employees earn below $21.45, according to Sheffield’s executive order.
Sheffield’s announcement affects roughly 900 city of Detroit employees, 70% of whom are Detroit residents, she said. It’s expected to touch several divisions, including the Buildings, Safety Engineering, and Environmental Department (BSEED); the Department of Public Works (DPW); the General Services Department (GSD), and the Detroit Department of Transportation (DDOT). Detroit has more than 11,000 full-time employees overall, and just over 7,500 are paid via the city’s general fund, according to budget documents.
GSD Director Crystal Perkins said about 34% of employees in her department will benefit from the increase. Employees work two or three jobs to make ends meet and some are facing homelessness, she said.
“The men and women of GSD maintain our parks, put the fun in our rec centers and support critical city operations,” she said.
DPW Director Ron Brundidge said the increase would affect about 150 employees or 29% of his department.
“These are the employees that provide the critical and key services that go so far towards improving the quality of life of all of the Detroit residents, whether it’s keeping the city clean, removing snow and ice during the winter season, sweeping streets, clearing parks − all of those things that are needed to ensure that the city of Detroit remains vibrant,” he said.
Why does the pay raise matter?
Thalese Mcclendon was in tears during the announcement.
An animal care technician for Detroit Animal Control, she is currently experiencing homelessness and living out of a hotel. Homeless since July, she has stayed in her car and in friends’ homes.
Now, Mcclendon is looking to the future. The pay raise would help her to build out her tutoring business and get her children, who are currently staying with their dad temporarily, back. She earns about $15 an hour.
“This will help with me getting back stable and back on my feet,” Mcclendon, 34, of Dearborn, told the Free Press. She wants to save to eventually buy a house in Detroit and start a homeless shelter.
City worker ShaDawn Adams, 54, of Detroit, welcomed the wage increase, too. Adams − a program recreation center coordinator for the city’s Parks and Recreation Department − said she works two jobs.
“I’m looking forward to seeing some changes,” she said during the news conference.
Where will the money come from?
The mayor’s 2027 proposed budget sets aside $7.9 million to increase wages to at least $21.45.
The funding is going to appear in the city’s non-departmental budget, according to Chief Financial Officer Tanya Stoudemire.
“We now have enough dollars there to be able to cover this in its entirety. We actually budgeted based on the number of budgeted positions, as opposed to filled positions, so there might even be a little bit of cushion there, so we’re confident that this will not be a problem for our city’s budget to handle,” Stoudemire said.
What does the executive order say?
The executive order Sheffield signed requires the HR director to submit a comprehensive report within 60 days on positions earning below roughly $44,500, salary recommendations to maintain equity and a fiscal analysis on collective bargaining and legal compliance.
The order also requires the HR director, labor relations director and the chief financial officer to take steps to implement the approved pay scales.
Reach reporter Nushrat Rahman at nrahman@freepress.com.