The governor says unions have to face the reality of a looming $21 billion deficit.

PATERSON: I understand that there are entities that go on and on thinking that they're going to cut the same piece of out of the pie. They don't understand that there is no more pie.

REPORTER: With six weeks left in the legislative session, unions are pushing for stronger pensions and higher wages in what's seen as a tough election year for Republicans.

Senate Majority Leader Joseph Bruno, who's trying to keep the Republican lead in the Senate, is known to be close to labor leaders.