If unions do not grant the cuts during negotiations, the company can ask a bankruptcy court judge to impose new labor contracts.
Mr. Giuliani talked tough, warning that he might lay off thousands of workers if the unions did not grant sweeping concessions.
Some producers feel their shows would be fine with fewer musicians and resent having to pay for a full complement (although the union will occasionally grant exceptions).
The autoworkers' union has granted concessions on wages in some cases when a company fell into difficulty.
If its unions grant greater concessions, it could sharpen its competitive edge quickly.
She also was the administration's lead official in advocating layoffs of state employees if unions did not grant substantial concessions.
In virtually all instances, the unions are granting steep concessions to obtain employment security.
That is on top of $2.5 billion in annual wage and benefit cuts that the unions granted in 2003.
The unions accepted a real-wage freeze and granted management greater scheduling flexibility in exchange for general reductions in average workweek.
Such plans could include buyout proposals under which the unions would grant concessions in wages and benefits for the buyer.