Representatives of Local 237 joined an estimated 20,000 other union members in a rally outside City Hall April 29 to protest Mayor Bloomberg's demand that Labor make $600 million in concessions or face the threat of layoffs of thousands of municipal workers to close a huge gap in the city budget.

Without the unions' givebacks -- and a possible loss of $1.7 billion in aid requested from the state -- the city is facing a shortfall of $3 to $4 billion in the fiscal budget that kicks in July 1. By law, the budget must be balanced by that date.

At the huge City Hall rally, the union demonstrators -- many carrying signs saying, "Don't balance the budget on our backs" -- sought to have the mayor look elsewhere, primarily Albany, for the needed financial assistance. Leaders of the city's unions had offered several ways by which the city could raise the money, but the mayor called them inadequate.

"Mayor Bloomberg rejected the proposals the unions offered him to close the massive budget shortfall without adequately discussing them," Local 237 President Carl Haynes said. "We put before him a plan that would aid in closing the budget gap, but he dismissed it as unworkable in less time than it took to write them up."

Haynes said that the unions offered a three-way plan to save the city millions and preserve thousands of jobs for those in the already depleted ranks of city employees. It was rejected by Mayor Bloomberg as "not really helpful."

The mayor said he was looking for $600 million in givebacks which, if not obtained, would force him to lay off city workers. Labor issued alternative proposals to fill the budget gap and save city jobs.

When he did not get the givebacks, the mayor started procedures to layoff an initial 4,500 municipal employees, with possibly 10,000 more to come if he did not receive additional state and federal funds.

The union proposals, drawn up by the Municipal Labor Committee, of which Haynes is a vice president, included a $300 million savings by stretching out city payments to union pension funds, an early retirement incentive to some city employees that could save the city $200 million, and another $100 million through reduced health care costs.

"We've asked Labor for some help," the mayor complained. "What they've come back with, unfortunately, isn't really very helpful." He contended the proposals would only amount to $20 million in savings.

Angered by the mayor's attitude, the members of the MLC launched a media campaign April 28 aimed at forcing Bloomberg to negotiate with the unions in good faith. The union leaders vowed there would be no givebacks and insisted that the mayor reconsider the proposals, which were similar to those given Mayor Giuliani in the '90s to solve the fiscal crisis. Those proposals, which also contained an early retirement package and delaying pension contributions, saved more than $1 billion.

The union leaders urged Bloomberg to rethink methods to finance the budget that assured job security. They pointed out that the city could realize $2 billion simply by making a concerted effort to recover uncollected taxes still owed.

Bloomberg had sought financial aid from Governor Pataki, but the three-term state official was adamant about slashing the state budget, with deep cuts in funds for the city. He also declined to consider reinstatement of the commuter tax or the imposition of tolls on the East River bridges, as suggested by Bloomberg.

However, a degree of optimism arose that $1.9 billion cut from the state budget by Pataki would be restored when there was rebellion in the Legislature. State Senator Joseph L. Bruno, the Republican majority leader, defected from the governor and joined with Sheldon Silver, the Democratic Speaker of the Assembly, to devise their own state budget at the end of April.

Even though the budget was a month overdue, the officials declined April 29 to seek action on the measure in hope that Pataki would sign on to it. The legislative leaders insisted they had sufficient votes to override any possible gubernatorial veto.