Detroit Water and Sewerage Department follows Mayor Duggan’s plan for employee cost savings in response to reduced revenues expected during the COVID-19 outbreak

2020
  • The employee changes are effective April 20 through July 31
  • The department did not pursue layoffs
  • State and federal unemployment funds will reduce or eliminate the financial impact on furloughed and workshare employees
  • Due to the COVID-19 economic impact, DWSD is making these changes in expectation of reductions in revenues over the next few months

DETROIT – The Detroit Water and Sewerage Department (DWSD), with support from the Board of Water Commissioners, has adopted Mayor Mike Duggan’s employee cost savings in response to the COVID-19 outbreak. Similar to the city’s general fund, DWSD is anticipating a reduction in revenue from water and sewer bill payments as households and businesses are economically impacted by the outbreak, and as businesses have used less water and sewer services during Governor Gretchen Whitmer’s Stay Home, Stay Safe Order.

“The COVID-19 outbreak is nothing any of us have experienced in our lifetimes and we have to make responsible decisions, not only to protect our employees and the community from the virus, but to reduce our operational costs,” said DWSD Director Gary Brown. “By following Mayor Duggan’s plan, the furloughed and workshare employees will be supplemented by the state and federal unemployment funds and they will be able to retain their health and retirement benefits. For DWSD, this is an important step in making these cost reductions in order to lessen the impact on our ratepayers.”

Water, sewerage and drainage rates are based on DWSD annual costs for personnel, equipment and supplies, professional and contractual services, the wholesale charges from the Great Lakes Water Authority, pension costs, and debt service. Personnel costs are approximately 11 percent of the DWSD annual operating budget.

The COVID-19 DWSD employee cost savings were effective Monday, April 20, and are as follows:

  • 212 employees will receive 10% of their pay every two weeks by working 10% of their hours and get state and federal unemployment benefits, while retaining their health and retirement benefits;
  • 124 employees will receive 80% of their pay every two weeks by working 80% of their hours and get state workshare and federal unemployment benefits, while retaining their health and retirement benefits;
  • 215 employees will receive 100% of their pay, work 100% of their hours and retain their health and retirement benefits;
  • 12 executive officers and senior management earning more than $125,000 will take a 5% pay reduction until July 1, 2021; and
  • All 7 Board of Water Commissioners will take a 5% reduction to their stipend through July 1, 2021.

In addition, employees will receive no pay raise on July 1. The furloughs and workshare are effective through July 31, 2020 and salary/stipend reductions through July 1, 2021. Depending on the economic impact – whether it improves or declines – DWSD may end the furloughs and workshare sooner or extend them.

The plan results in furloughs and workshare for 59% of DWSD’s workforce (336 out of 566). The projected savings for the furloughs, workshare and salary reductions are $10.2 million.

DWSD will also reduce expenditures on supplies and delay some planned construction projects, again in anticipation of decreased revenue from water and sewerage usage and bill payments. Some of the impact is a reduction in usage for the businesses that have been closed or had reduced operation during the governor’s order.

The employee furloughs will have an impact on services as work will be re-prioritized.

Brown added, “Our entire team has been incredible during this outbreak and many of them have been working extra hours to support our customers and this city. We appreciate all they do and are relieved we can retain their talents during this temporary adjustment.”

DWSD’s COVID-19 response
As an essential service, DWSD has continued operations during the stay at home, stay safe order. Many of the staff, except for field services, are working remotely. Since March 11, DWSD has restored water to 1,135 households through the COVID-19 Water Restart Plan. The Field Services group continues to respond to water and sewer emergencies, including water main breaks, across the city. The Customer Care Centers remain closed; however, all transactions can be done by phone at 313-267-8000 and most transactions can be done online at www.detroitmi.gov/paymywaterbill. 

About The Detroit Water and Sewerage Department
The Detroit Water and Sewerage Department (DWSD) serves more than 230,000 accounts that includes a residential population of nearly 700,000. DWSD’s water network consists of more than 2,700 miles of water main and nearly 3,000 miles of sewer collection piping within the city of Detroit. To learn more about DWSD or to request water services, make payments, or report water problems, call DWSD Customer Care at 313-267-8000 or contact us at www.detroitmi.gov/dwsd.

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