The Los Angeles City Council, city worker unions, and Mayor Antonio Villaraigosa last week agreed to a package of labor concessions that will close about a third of the city’s $405 million budget gap for the current fiscal year.

City officials said the deal with non-public safety workers would save about $138 million. Most city workers will forego raises over the next two years, and the nation’s second-biggest city will pare its workforce by 2,400 through early retirements. City workers will also have to make larger pension contributions.

The plan was approved unanimously by the City Council last Friday, but must still be approved by the city’s pension system and public employee unions.

“This agreement allows us to balance the budget without layoffs and furloughs that hurt workers and cut services at a moment when our families need them most,” Villaraigosa said in a statement.

Los Angeles has been battling to cut labor costs and balance its budget since the spring. It continues to negotiate with public safety unions to reduce labor costs in the police and fire departments.

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