In its final offer before the strike, management offered a 9 percent pay increase over four years; the union was seeking 17 percent.
The proposals also seek 25 percent of the revenue they earn from advertising and other services.
The unions, representing teachers, nurses, the police, prison guards and social workers, are seeking 10 percent.
But some friendly foreign diplomats have suggested the United States could seek 15 or 20 percent.
It has traditionally won settlements larger than the public employees' union, and is seeking 9.5 percent.
On Friday, the Pentagon announced it would seek 7 percent more money next year, or $401.7 billion.
The union has been seeking 10 percent more pay and two more days off a year.
It also seeks 25 percent of the revenue they earn from advertising and other services.
The union had been seeking 15 percent in the first year, and 10 percent in the second.
"If the Croats seek more than 50 percent of the political power, there will be terrorism against them," he said.