MADISON, Wis. -

The city of Madison could save $2 million under a proposed contract with its largest municipal employees union.

The deal was made possible after a court ruling this month put portions of the state's public employee collective bargaining law on hold.

The tentative agreement between the city and AFSCME Local 60, which represents about 1,100 workers, is set to go before the union and City Council this week.

Mayor Paul Soglin said the agreement would let the city reduce wages or health benefits by up to 3 percent, saving about $2 million.

But the union said its members would get security because the contract would prevent further cuts and preserve union rights that the state law would take away, such as grievance arbitration.