Chicago Mayor Richard Daley’s talks with city unions over concessions are ongoing this week in an attempt to fend off 1,500 planned layoffs absent an agreement to help address a growing deficit in the 2009 budget.

The city is seeking wage cuts but unions want a guarantee that officials won’t come back and later seek layoffs if they agree to concessions. The city warned on Friday that it would begin distributing layoff notices as required under its collective bargaining agreement. The layoffs would take effect July 15.

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