The mayor of Allentown, Pa., says he’s been sitting down with union leaders to rework its labor agreements in a bid to keep the financially troubled city out of Act 47 — the state’s distressed municipalities program.

Mayor Ed Pawlowski said in an interview that the aim is to ease municipal pension and health care costs in Pennsylvania’s third-largest city. The collaboration between city officials and union leaders runs counter to media reports suggesting Allentown was headed into Act 47.

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