WORKERS at a London council threatened industrial action yesterday as they launched a campaign against cuts to their pay and conditions worth almost £2 million.

Newham Council is planning to rehire workers on lesser-paid contracts, the Unite union warned.

One of the areas to be hit is overtime pay, with some workers potentially seeing up to half of their wages slashed. Low-paid council workers depend on regular overtime so that they can meet the capital’s living costs, the union pointed out.

Unite argued that while the council is planning the £1.8m cuts, it has £161m in general fund reserves for the financial year 2015-16.

The union pointed out that no cuts are being proposed to councillors’ allowances — Newham Mayor Sir Robin Wales receives an annual allowance of £81,029.

Regional officer Michelle Cook said that this is not a campaign demanding a pay increase. “All we are demanding is that the pay and conditions of public service workers are not cut.

“The authority needs to remember that for years council workers took a pay freeze so the books could be balanced,” she said.

Campaigners are planning lobbies of council meetings and events, and a petition will be launched calling on councillors to think again.

The Labour-run council has responded by saying that it is still in discussion with staff over terms and conditions. If proposals go ahead, they are expected to be put in place in the new year.

A spokesperson said: “With huge financial cuts to come, it is frankly ridiculous for Unite to blandly suggest that councils such as Newham use up their reserves rather than working with their staff to help balance the books in these tough times.”