THE leader of Derby City Council says employees should not be alarmed after letters were sent out saying they may have to have their contracts "terminated alongside an offer of re-engagement" if they don't accept a new pay agreement.
But the biggest union at the authority, Unison, has said the intention of the document was to "do exactly that, panic people".
They have been sent, said Councillor Paul Bayliss, to all the authority's staff that "aren't employed in a school" as a result of wrangling over the Government-ordered "equal pay review".
This, the council says, is aimed at ensuring its workforce receive fair wages for work of equal value and common terms and conditions.
Historically this has not been the case nationally, mainly because women were not paid a fair amount in comparison to men.
The Derby Telegraph previously reported how at least 600 city council workers stand to see their basic pay reduced from April 1 next year as part of the changes.
About another 2,000 staff members will see their basic rate of pay increase and about 800 see no change.
Mr Bayliss said the letter had gone out because a "collective agreement" over the new rates of pay, terms and conditions had not currently been reached with unions.
He said: "There's a process of negotiation. We put the offer on the table.
"We then have the trade unions consulting with their members. They come back and say whether they can give us any form of collective agreement and, at the moment, they can't."
He said another meeting with unions was scheduled for next week and that, if a collective agreement was reached then, what is being said in the letter would be withdrawn.
Mr Bayliss said employees should not be alarmed by the letter.
The letter says: "Following a period of consultation we may go on to ask each employee to voluntarily accept a new package.
"If we do this then any employee who chooses not to accept the new package may face the possibility of having their contracts terminated alongside an offer of re-engagement on new terms and conditions (with continuous service preserved).
"This is not something we want to do but we may need to do it to move forward."
Mr Bayliss said: "The fact is that if people sign the contract there will be no change. Things will continue without any noticeable change at all."
Asked if he was disappointed with the unions' position, Mr Bayliss said "not entirely".
He said he didn't think any council had achieved a collective agreement over equal pay reviews but that Derby City Council had "thought it might".
Nicole Berrisford,Derby branch secretary for Unison, said she was angry about the letter.
She said: "We haven't finished consulting with out members yet so we are not in a position to accept a collective agreement on the pay and harmonisation of terms and conditions.
"I think their agenda is to rush this through and scare the workforce."
