12/18/2008 05:12 am ET Updated May 25, 2011

Daley Reaches Agreement With Unions That Could Decrease Lay Offs

Mayor Daley and organized labor have reached an agreement that could dramatically reduce the 929 layoffs needed to solve Chicago's worst budget crisis in a generation, City Hall sources said Monday.

Union leaders have agreed to work-rule changes to reduce the city's overtime costs, the soures said. They have also agreed to drop their opposition to a partial shutdown of city government around the holidays.

In exchange, Daley has agreed to offer cash incentives -- at least $5,000 and as high as $15,000 -- for members of Laborers Local 1001 to induce retirements by eligible union members.

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