Detroit Mayor Dave Bing says he has imposed new union contracts aimed at saving the cash-strapped city more than $100 million annually.
Bing says in a statement that Wednesday is a "tough" but "necessary" day for Detroit and that the city no longer can operate in excess of its expenses.
The new contracts feature a 10 percent wage cut and significant changes to health care and work rules.
Bing said he took no pleasure in the cuts, arguing they were necessary for the city's financial stability.
The City Council rejected the proposal Tuesday, but Detroit's financial advisory board can implement the actions without council's approval.
Detroit Police Officers Association President Joseph Duncan says workers are "devastated" by the city's move. He says it effects officers financially and their morale.