Los Angeles reached a deal with 60% of its workforce which is expected to save $400 million over the next four years. The deal would have workers pay up to 4% of their salary towards health care coverage and would freeze pay increases. It would also prevent further layoffs and end furlough days, as well as restore some city services. The Mayor said that the deal was a sign that collective bargaining can be used to save money, and that unions are willing to negotiate. He also said that he hopes to work out similar agreements with other municipal unions. The deal still has to be ratified.
See "Los Angeles Mayor Says Union Bargaining Worked to Save City $400 Million", Christopher Palmeri, Bloomberg News, March 24, 2011