Detroit’s bus drivers are set to see the largest wage increase in more than a decade under a new agreement between the City of Detroit and the Amalgamated Transit Union (ATU) Local 26. The contract, which was ratified by an overwhelming 98% of voting union members, promises an immediate $6 per hour wage increase once approved by City Council — a move city officials say will make Detroit more competitive in retaining and attracting transit operators.
Mayor Mike Duggan joined ATU President Schetrone Collier and Executive Director of Transit Robert Cramer in announcing the agreement, calling it a long-overdue step toward pay equity for the city’s bus operators. The new pay structure will bring starting and maximum wages for Detroit Department of Transportation (DDOT) drivers in line with those offered by the Suburban Mobility Authority for Regional Transportation (SMART), a neighboring system that for years has outpaced Detroit in driver compensation.
Under the proposed deal, DDOT’s starting hourly pay will rise from $19.56 to $25.38, while the maximum rate will increase from $26.18 to $32.18. These figures mark a significant leap forward for more than 500 DDOT operators represented by ATU Local 26 — workers who have long advocated for wages that reflect the demands and importance of their roles in Detroit’s public transit network.
“Over the past 12 years, we have steadily increased the amount DDOT drivers are paid but continue to lose a lot of our drivers to SMART because it traditionally has paid more,” said Mayor Duggan. “With this new contract, for the first time, bus drivers can take home more if they work for DDOT and meet their performance marks.”
The new wage structure still trails slightly behind other regional peers, but it closes much of the long-standing gap. Currently, SMART drivers earn between $25.87 and $32.34 per hour, while those in Lansing make $26.44 to $33.05. Ann Arbor transit operators remain the highest paid in the state, with wages starting at $28.09 and capping at $33.05 per hour. Even with these differences, the proposed Detroit increase represents a meaningful improvement — not just in pay, but in the city’s ability to compete for skilled operators amid a tightening labor market.
Officials say the city’s investment in its bus drivers is about more than just wages. A new system of performance incentives will reward employees for strong attendance and safety records, offering opportunities to earn even more than drivers at neighboring transit agencies. These quarterly bonuses, which continue from previous contracts and expand under the new one, aim to improve service reliability and passenger safety.
Under the agreement, attendance incentives will be provided to drivers who have no more than one unplanned absence per quarter. Safety bonuses will be awarded to those with no preventable accidents within the same period. Together, these measures seek to strengthen performance and ensure consistent service for the thousands of Detroiters who depend on DDOT buses each day.
Additional provisions in the contract include an annual cost-of-living increase every July 1, ensuring that wages keep pace with inflation and ongoing economic changes. Mayor Duggan credited Human Resources Director Denise Starr for her role in negotiating the new deal and helping the city and union reach consensus. He also expressed optimism that the contract will stabilize DDOT’s workforce and improve service reliability for Detroit residents.
The sentiment was echoed by ATU Local 26 President Schetrone Collier, who said the agreement represents both progress for workers and a win for the broader community. “The passing of the ATU Local 26’s new contract represents progress not only for our members, but for the entire community that depends on safe, reliable and efficient transportation,” said Collier. “We thank our riders and supports for standing with us as we work toward a fair and sustainable transit system for all.”
The contract will be submitted to Detroit City Council in November and is expected to take effect immediately upon approval. City Council President and Mayor-elect Mary Sheffield expressed strong support for the proposal, emphasizing that improved wages are essential to improving bus service across Detroit.
“One of our largest hurdles in overcoming long wait times and improving reliability within our transportation system has been retaining our DDOT drivers,” Sheffield said. “This wage increase will help us keep skilled drivers on the road and raise our service standards, while also providing competitive pay and incentives to enhance both service and safety on our streets. This increase signals to our drivers that we value their service and are committed to investing in the people who keep Detroit moving.”
City officials expect the cost of the wage increase to be partially offset by new revenue from Governor Gretchen Whitmer’s recently approved transportation funding bill. Additional savings are anticipated through reduced training costs, as higher pay should reduce turnover and limit the number of new hires leaving DDOT for higher-paying opportunities elsewhere.
For years, Detroit’s transit system has struggled with driver shortages that have led to reduced service frequency, missed routes, and long wait times for riders. The new contract aims to reverse those trends by making DDOT a more attractive and stable employer in an increasingly competitive market for bus operators. City leaders hope that higher pay and improved incentives will lead to better recruitment and retention — and, in turn, better service reliability.
Executive Director of Transit Robert Cramer said the agreement is a reflection of the city’s ongoing commitment to the workers who form the backbone of Detroit’s public transportation system. “DDOT’s operators are the public face of our transit system – dedicated professionals who take pride in safely connecting residents to the places and people that matter most,” Cramer said. “This new contract represents a continued investment by the Mayor and City Council reflective of their essential role and supporting rewarding and sustaining careers.”
The announcement of the ratified contract marks a milestone in Detroit’s efforts to strengthen its public transportation infrastructure and to ensure that the people operating it are fairly compensated for their work. For riders, it signals the city’s renewed focus on reliability and safety. For drivers, it represents recognition of the challenges they face daily on Detroit’s streets — and the value they bring to the city’s residents.
The boost in pay, paired with performance-based bonuses and regular cost-of-living adjustments, gives DDOT drivers a clearer path toward economic stability. And for a department that has long been challenged by driver turnover, the contract may finally provide the stability needed to deliver consistent, high-quality service.
As the city awaits final approval from the Council, both union leadership and city officials are optimistic that the contract will mark a turning point for Detroit’s transit system — one built on fair wages, accountability, and shared commitment to serving the public.
