Labor union leaders and city officials in Chicago reached a deal on Monday to limit city employee layoffs to 770 from 929 (Mayor Richard Daley's original layoff proposal). Daley's budget proposal also raises taxes, but is likely to be passed by the city council regardless given an estimated budget deficit of $469 million. In addition to fewer layoffs, the city will offer buyouts to union employees with 10-year seniority. Unions have agreed to an unpaid furlough day to fund severance payments.
See "Daley aides, labor leaders reach deal on layoffs", Hal Dardick and Dan Mihalopoulos, Chicago Tribune, November 17, 2008