The Federation of Quebec Municipalities, which represents about 1,000 small and medium-sized towns and cities across the province, could be on the verge of getting more power from the provincial government.

This weekend the towns and cities will decide if they want to embrace a new fiscal pact that would see Quebec give them less money in exchange for more power and self-rule.

Among the new powers being considered for municipalities include more say in negotiating with unions. Municipalities would have more power over working conditions and how much municipal workers are paid.

That possibility, considering unions are currently fighting the province over adjustments to pension plans, has garnered an angry response, and on Wednesday protesters stormed into the meeting of the Union of Quebec Municipalities, which represents large cities including Montreal, Quebec, Longueuil and Laval. The UQM voted 80 per cent in favour of the new deal.

The new agreement comes as the provincial government has scaled back the funding it provides to cities on a permanent basis.

Last year the province cut its transfer payments by $300 million, and has decided this lower funding will continue in the future.

Premier Philippe Couillard said he's aiming for a balanced approach.

"It is not our intention for mayors to become despots or people who will just come in one morning and say 'These are your working conditions' and that's all. They have to negotiate in good faith," he said.

Union leader Marc Ranger is accusing the government of creating a confrontation, saying crashing the meeting was necessary in order to send a message that they aren't happy. Municipal Affairs Minister Pierre Moreau called for calm.

"Wait until the process is tabled. Mr. Ranger will have all the time he needs to read the proper document and comment on it," he said.

Moreau said he discussing the deal with mayors and other officials, but said he won't comment to the media until a law based on the discussions is actually written.

The government is already up against healthcare workers and teachers angry with austerity measures., and political analyst Jean Lapierre said seems the battle with the public sector is about to get even bigger.

“I think this crisis is going to be far more loud than the one on pensions because this is affecting them for the long, long term and we're talking millions and millions of dollars,” he said.