COUNCIL staff including refuse, leisure and crematorium workers could walk out over a pay dispute, a trade union has said.

Public service union UNISON has warned Colchester Council staff could stage a strike over the borough’s “refusal” to pass on a nationally agreed local government pay rise.

The union says workers at the council and Colchester Borough Homes – the authority’s housing company – agreed a 2.5 to 3 per cent pay rise in February.

But UNISON added the “spiralling” rise in inflation employers nationally have agreed a £1,925 rise across local government.

UNISON told the Gazette: “Council chiefs in Colchester reluctantly offered to implement the national rise, but only backdate it to September, leaving staff hundreds of pounds out of pocket.

“Pay already lags behind other councils in the area, with bin lorry drivers in Chelmsford on around £2,500 more than their colleagues in Colchester, a gulf that’s set to widen when Chelmsford staff get their full backdated £1,925 pay rise.”

The union is set to open a strike ballot on Thursday, the day after Colchester officially becomes a city.

UNISON Eastern regional organiser Sam Older said: “Colchester’s civic leaders lauded city status as a great way to boost the local economy and provide new opportunities for residents.

“It’s hard to see how that squares with this determination to hold down the wages of council staff.

“Rather than a bright new day, the new city could be faced with bins going uncollected and leisure centres being shut down within weeks.

“Council workers are vital to the city’s success but they’re some of the worst-paid local government staff in the region.

“All they want is the same pay rise as their colleagues across local government have received. It’s really not too much to ask.”

A spokesman for Colchester Council said: “The council negotiates pay deals with UNISON at a local level. This year's pay award was negotiated in good faith with UNISON, providing a 3 per cent pay increase for lower-paid staff and 2.5 per cent rise for all other staff. 

“The council acknowledges the circumstances in which the pay award was negotiated have subsequently changed, however, with the increase in energy prices and cost of living rise.  

“The council is committed to tackling income inequality and champion workers struggling on low pay and was one of the first local authorities in the country to be recognised as an accredited living wage employer. 

"On 1 October, we implemented the real living wage pay increase to £10.90 per hour for our lowest paid staff, which represented a 10.1 per cent annual increase, equivalent to a pay increase of £1,929 per annum.  

“We have also offered to implement the national pay increase from April for staff who received a pay increase below the £1,925 figure and are paid below the national pay scales, in recognition of the cost-of-living challenges they are facing. 

“The council is currently facing an in-year financial challenge with a £1.1million shortfall in funding. The cost of implementing the national pay deal would be an additional £450k, an amount that would have to be found by reviewing the vital services provided to our residents. 

“We are continuing to negotiate with UNISON and are committed to reaching an agreement that is within the limits of affordability and avoids strike action.”