PHILADELPHIA—Blue collar workers in the Philadelphia School District have reached a tentative deal that union officials say saves thousands of jobs.

The deal struck late Wednesday by the district and the union representing about 2,700 employees still needs to be ratified.

Union leaders tell The Philadelphia Inquirer ( http://bit.ly/NjrU4F) they had put more than $20 million in concessions on the table as the district deals with a budget shortfall of at least $218 million.

About 500 layoffs were set for Sunday.

The union represents bus aides, mechanics, building engineers and other workers.

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Information from: The Philadelphia Inquirer, http://www.philly.com