Why do Chicago and Mayor Richard Daley,and Alderman Burke face $420 million budget shortfall?

The Chicago Tribune reports:

In a metro area where the median private-sector wage is less than $17 an hour, union city jobs not only offer security, but also the pay and benefits that are becoming increasingly rare outside government.



The generous wages and benefits given to many in the roughly 38,000-strong municipal workforce amount to 80 percent of the cost of running the city's government, making it impossible to significantly cut the budget without reducing personnel costs.

Those expenses are only going up since Daley agreed last year to a 10-year contract with dozens of labor unions. The deal guarantees continued pay increases that far outstrip inflation.

Take for instance the city's hoisting engineers, members of clout-heavy Local 150. Their top hourly wage of almost $44 an hour has risen from $37.50 in three years.

Local 150's city contract also allows for double time for any work over eight hours in a day or 40 hours in a week.

They and other blue-collar workers, such as laborers, get 12 sick days a year, which they can carry over to future years if not used, in addition to 12 paid holidays.

If a relative dies, members of the biggest trade unions get three paid days off—rising to five if the funeral is held out of state.