Ending days of tense negotiations and veto threats, Los Angeles' elected officials struck a deal with key labor leaders Friday, gaining enough financial concessions to erase nearly a third of this year's $405-million budget gap.

The City Council voted unanimously to resurrect a plan to give early retirement to 2,400 workers and spare six of the city's civilian employee unions from layoffs or furloughs -- at least for now.

City negotiators also said they had persuaded the Coalition of L.A. City Unions to give up $78 million in "hard concessions." Meanwhile, coalition leaders agreed to ask their members to contribute an extra 0.37% of their paychecks toward the city's pension fund, covering more of the cost of early retirement.

"These concessions are real," said Mayor Antonio Villaraigosa, who embraced the agreement. "The people will feel these concessions in the pocketbook."

The council voted 12-0 for the agreement and will need to cast a second vote on early retirement in a month. Still, the agreement only begins to address the enormity of the city's financial woes.

Labor negotiators are seeking $142 million in salary concessions -- or service cuts -- from its public safety unions and have offered up police furloughs as one option. Meanwhile, the shortfall for the next budget year, beginning July 1, 2010, could exceed $400 million, according to one recent estimate.

City Administrative Officer Miguel Santana would not offer details on the union concessions, saying the plan would be divulged after the coalition's 22,000 members ratify the agreement. On a list of proposed concessions, a copy of which was obtained by The Times, the coalition hopes to save $34.6 million by having members reduce their overtime and receive 50% of their pay on 10 holidays.

Other proposals would allow the city to delay certain payments to the coalition's members, according to the list. For example, $24.6 million in departure bonuses offered to those who take early retirement would be postponed until next year.

Friday's accord brings an end to the behind-the-scenes struggle between the council, the mayor and the employee unions over plans to impose 26 furloughs and the elimination of 926 civilian jobs.

The budget fight frayed relationships to such a degree that earlier in the week, union members began yelling at the mayor's deputy chief of staff, Matt Szabo, as he explained Villaraigosa's views to reporters. The mayor, in turn, screamed at Council President Eric Garcetti in one telephone call and hung up on him during a second, according to participants familiar with the talks.

"It was a highly charged situation for everybody," said Bob Schoonover, president of Service Employees International Union Local 721, which belongs to the coalition.

Two hours after the vote, Villaraigosa praised the council. Garcetti offered his own kind words, saying the mayor, the unions and the city's elected officials had worked in a "collaborative way."

"We are a family again," he declared.

Still, some city workers -- mainly those represented by the Engineers and Architects Assn. -- will be forced to take layoffs, Santana said. Because employees in that group are not part of the coalition, they automatically received raises on July 1 and have been forced to take 26 furlough days this year.

The association has already threatened to file a lawsuit, saying its members did not agree to pay more into the pension system to cover the cost of early retirement. If the city seeks those higher payments, "we will initiate the appropriate filings in the appropriate arenas," said Robert Aquino, who heads the union.

For weeks, the city's financial analysts warned that the council has been spending $1 million more per day than it is taking in. Yet the council, which has several members seeking to run for other offices, was loathe to abandon a plan heavily favored by the union coalition.

Santana warned that the council would have to make deep cuts to public safety if it didn't renege on its promise to shield the coalition from layoffs and furloughs. And he urged the council to secure a 1.9% increase in retirement contributions from the coalition to cover that program's full cost.

The agreement approved Friday brings the total to 1.07% -- up from 0.75% -- the amount promised by the unions three months ago. One scenario provided by the city's actuary said 1.07% would be enough to allow 2,227 employees to retire up to five years early.

Still, Santana acknowledged that there is a gap between what he requested and what was promised. He said workers who take early retirement also would contribute 1% of their pensions toward the plan. Until an actuarial study is completed, city officials won't know how much money such a provision would generate, he said.

Pension officials said that the added employee contribution from the coalition would generate an additional $141 million over the 15-year life of the retirement plan.

Friday's decision eliminates Santana's plan to lay off members of the coalition, which drew angry protests from labor leaders last week. After the council voted, however, union members walked up to Santana and shook his hand.