ALAN MacDERMID and ROBBIE DINWOODIE

The threat of a strike by 220,000 local government workers in Scotland loomed larger after their unions rejected a three-year pay deal, but employers accused them of reneging on recent negotiations.

The three unions - Unison, GMB and Unite - yesterday turned down the 2.5%-a-year offer from the council body Cosla, representing the employers and covering this year, 2009 and 2010.

But The Herald understands that Cosla officials are furious that the unions initially gave the go-ahead to a multi-year deal before backing off at the 11th hour.

Cosla's negotiating wing, the Scottish Joint Council, has written to the joint union side reminding them of what happened at a meeting on March 3. "The trades union side appeared content with the principle of a multi-year settlement and, indeed, to encourage this position we extended our offer to the limits of affordability by local councils.

"The sticking point . . . appeared to be the trades unions' desire for an inflationary trigger although this was not mentioned during discussions at our meeting."

The problem for councils is that they are now locked into a funding deal with the Scottish Government which effectively blocks them going further than the deal on the table.

The unions, who said they had been taking soundings from their members on the offer, had submitted a pay claim last November looking for a rise of £1000 or 5%.

Dougie Black, of Unison Scotland and secretary to the union side, said: "All three trades unions have rejected the employers' offer. There is a great deal of anger at the employers' insistence on a three-year deal and their continuing refusal to agree a re-opener clause linked to inflation. The offer is already less than inflation, and without a re-opener clause our members are being asked to buy a pig in a poke."

Alec McLuckie, senior organiser of GMB Scotland said: "Clearly rejection of this offer places us on a course for industrial action, and all three trades unions recognise the need to co-ordinate a joint campaign supported by campaigning materials and briefings outlining our concerns with the offer."

Jimmy Farrelly, senior organiser of Unite (T&G Scottish section) said: "The offer doesn't approach the current rate of inflation, let alone begin to catch up the loss staff have suffered over recent years, and it skews the pay scales, increasing the gap between higher and lower paid - for our lowest paid workers the increase after three years is around 50p. This is effectively a pay cut."

The unions will now call on their members in local government to reject the employers offer in a full consultation.

Mr Black added: "Cosla have said they want to make efficiency savings so they can reinvest in services. One of those investments should be in the workforce that delivers these services. If you want first class public services, if you want the sick and elderly cared for, your children well-educated and protected and your streets clean and safe, cutting the pay of public sector workers is the wrong way to go about it."

Councillor Michael Cook, Cosla human resources spokesman, said: "This is a good deal at any time, let alone at a time when the unions are well aware of the constraints on local government finances and more generally across the public sector.

"As employers we value our workforce highly and we believe that the offer on the table is exceptional in the current pay climate and is as good as, or in excess of, other offers and settlements made in the public sector both in Scotland and the rest of the UK."