Published: July 15, 2009

t's been a long round of he said, they said in Allentown. After two turned-down contract offers, the city is getting ready to lay off nearly 40 employees. WFMZ's Stephanie Esposito reports the mayor's saying he has no choice here.


   
>>REPORTER: Mayor Pawlowski tells me he's made two offers to the city workers union, both included pay raises both were rejected. The union says they had a deal with a former administration, tonight, nobody's getting what they want. 

>>There was an 8.9% increase promised by the last mayor. We can not afford an 8.9% increase. 

>>REPORTER: 420 of the city's 900 employees are members of the union SEIU. When the city realized they couldn't afford to pay the promised increase, they made a new offer. 

>> The first proposal we put forth was a very reasonable proposal. We asked them to take a 4.9% increase this year we extended their contract. 

>>REPORTER: Mayor Pawlowski says he also promised that for several years he wouldn't lay off anyone. 

>>NAT The union voted on the proposal and turned it town. 

>> We will shorten the length of the contract I'll push it up to 5.9% but you have to do a 35 hour workweek for the remainder of the year and no one gets laid off. They refused to even bring that to their membership for a vote. 

>>REPORTER: We spoke with SEIU representatives who told 69 News that they've put forward a proposal to save Allentown millions their proposal was to add police and fire personnel to their health care plan. 

>> To date we have nothing. I don't have a shred of paper, I haven't received a fax, a brochure I have nothing that indicates how this savings will occur. 

>>REPORTER: Pawloski says regardless, the city has a 3 year contract with Blue Cross Blue Shield. 

>> To take this sort of stance in this economy is perplexing to say the least. SEIU says they're eager to come to an agreement but that the mayor has yet to return their calls. 

>> my heart goes out to the families, the individuals who are losing their jobs but we made every effort. 

>>REPORTER: 39 jobs are on the chopping block now. Because of seniority built into their contracts, the lowest on the union totem poll will be laid off first.