On Wednesday, Philadelphia's mayor delivered what he said was his final proposal to the largest city workers' union. The union rejected the five-year retroactive proposal, which included pay increases for the next two years, as well as furloughs and changes to pensions. The two sides have been negotiating since 2009, and the Mayor says that the rejection of the deal means that the two sides are at an impasse. The union says that it is willing to negotiate if furloughs are off the table.
See "Mayor Nutter Delivers "Final Offer" To City Workers", Mike Dunn, CBS News, January 16, 2013