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After filing for municipal bankruptcy, Vallejo, California is trying to void employee contracts to save costs. Although labor costs make up 75% of the city's annual budget, unions and labor advocates claim that the city hasn't proven the contracts to be a burden and that the contracts cannot be just thrown out. Union leaders also worry that allowing the contracts to be voided will encourage other struggling California cities to do the same, effectively shifting the financial burden of city deficits to public workers. Groups contesting the city's attempt include local police and firefighters, the California Public Employees' Retirement System, and the International Brotherhood of Electrical Workers.