Mediators in Detroit's federal bankruptcy case say building trade unions agree to contribute to a fund to cover retirees' benefits.
Republican state House Speaker Jase Bolger of Marshall made union contributions to the pensions a condition for state aid, designed to protect the Detroit Institute of Arts' collection from sale to cover the costs.
U.S. District Court mediators issued a statement Monday saying the Michigan Building and Constructions Trades council "will be participating in the so-called `grand bargain"' by contributing an undisclosed amount to retiree health costs.
Bolger calls the union move a "huge step forward."
A House committee vote is scheduled Tuesday on giving $195 million to an $816 million package to help Detroit emerge from bankruptcy. Foundations, philanthropists and the museum also are contributing.