COSTA MESA (CBS) — An Orange County judge has refused to block city officials in Costa Mesa from plans to outsource jobs now filled by municipal employees.

KNX 1070’s Mike Landa reports the Costa Mesa City Employees Association must now regroup on Thursday after their request for a temporary restraining order was denied.

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One official says laying off more than 100 municipal workers is in violation of state law and labor agreements.

“This is not about balancing a budget, it’s about advancing this political strategy of undermining the voice of working people,” spokeswoman Jennifer Muir said.

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The judge set a July 5th hearing on a preliminary injunction after refusing the motion.

Deputy City Attorney Paul Coble defended the move, saying there is nothing illegal about the city’s cost-saving measures.

“The city of Costa Mesa is very mindful of its duties under the law and under the labor agreement, but as I’ve said, they’re staying well within bounds,” Coble said.

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An estimated forty Costa Mesa employees have received layoff notices in the move that may ultimately see hundreds of jobs transferred to private contractors.