Several groups representing City of Saint John employees will meet behind closed doors Thursday.
They are being told the province has rejected the city's proposal to deal with a massive shortfall in the employee pension fund.
Those meeting represent both unionized and non-unionized city staff.
Many of those groups agreed to take concessions earlier this year as part of a package-deal the city sent to New Brunswick's Superintendent of Pensions to pay down the more than $100 million deficit in the employee pension fund.
Jamie Hachey, president of the Saint John Police Union, said that package has been rejected.
"She's told us the deal is not good enough and she's not prepared to accept it," said Hachey.
After making a deal with the city to take cuts earlier this year in hopes of satisfying the province, Hachey said his officers have no desire now to give up even more.
"Now they're telling me that they're reneging on their deal potentially ... causes great concern for my membership," Hachey said.
The employee groups have been asked to discuss a long list of scenarios for further concessions prepared by the office of city manager Pat Woods. Woods could not be reached for comment Wednesday.
City employees agreed to a two-year wage freeze and reductions in benefits and signed collective agreements, to that effect.
Without changes to the pension plan, the city could be facing a 12 to 14 per cent tax hike, or up to $10 million in service cuts.
The pension deficit is increasing by about $750,000 a month, and the city wants to delay topping the fund up.