Employees at Birmingham City Council have been warned that the local authority is planning to review terms and conditions for all its workers, as part of a bid to cut hundreds of millions of pounds in expenditure.
Trade unions were issued with a Section 188 notice last week, informing them of the council's intention to hold a consultation on the possibility of introducing revised contracts of employment.
"The magnitude of this financial pressure is immense," said chief executive Stephen Hughes. "The council needs to radically review its overheads and expenditure and as part of this there is a need to broaden the existing review of employee allowances."
He added that Birmingham City Council is under pressure to reduce its spending by £30 million over the next few years and stressed it any changes it makes will be fair to staff and will comply with equality legislation.
In June, GMB national secretary Brian Strutton told BBC News industrial relations at the authority were "the worst in the country".
Posted by Cameron Thomson