SEIU Local 73 said the village laid off all five public works employees earlier this month without notice, in violation of their contract.
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The village said the layoffs were the result of contract negotiations, and happened before the recent water pressure issues.
Dixmoor is temporarily getting its water from Blue Island because of continuing pressure problems from Harvey.
RELATED: Dixmoor water problem, boil order reach 9th day; mayor says permanent fix could cost $20M
The problem began in mid-October when the 12-inch main that carries the water from nearby Harvey, which supplies Dixmoor with water, failed.
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Officials said a faulty valve was to blame. The un-scheduled shutoff damaged the main, causing several breaks in that pipe.
The water levels at Dixmoors reserve then dropped, which in turn disabled the village's two turbine pumps responsible for creating enough pressure to provide water to residents.
Dixmoor Mayor Fitzgerald Roberts said the village's infrastructure is over 100 years old, adding that a permanent fix to the problem could run in excess of $20 million.
"On, off, on, off. Its been bad for years. They just haven't done anything about it," said Dixmoor resident Wayne Motley.