"We have not consented to his proposal to eliminate raises for the next two years," Mr. Logan said, "and we have yet to sit down at the bargaining table".
The House earlier this year passed a Republican budget plan that would freeze pay grade levels and eliminate raises for five years, and cut the government's work force by 10 percent.
Since then, the city negotiated a new contract with DWP workers that eliminated raises for three years.
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Executives at Credit Suisse First Boston, which eliminated midyear raises this year, were preparing this week to inform employees that all year-end raises would be indefinitely postponed, an executive at the firm said on Wednesday.
Mr. Summers said the administration had also raised the possibility of eliminating step increases — raises that accrue with tenure — as an alternative to unpaid days.
In the current economic climate, he said, he has instituted a hiring freeze and will probably eliminate pay raises this year.
But he then added that if unions did not agree to eliminate automatic raises, make co-payments on health insurance and accept changes in work rules that would increase productivity, he was ready to try to deny them any raises.
First Boston has already cut about 2,000 jobs -- more than 7percentt of its global work force -- and eliminated midyear raises for managers, but the firm still has one of the highest cost structures on Wall Street.
The three other tax breaks Mr. Obama hopes to eliminate would raise comparatively small amounts of money for the Treasury.
