Ministers have been urged by Scotland's largest local authority to "step up to the mark" and freeze public-sector pay or risk tens of thousands of jobs.
Ministers have been urged by Scotland's largest local authority to "step up to the mark" and freeze public-sector pay or risk tens of thousands of jobs.
The call, by a leading figure in Labour-run Glasgow City Council, signals an intention to rule out any rise in wages among its own staff and those employed by arms-length agencies in the coming years.
Gordon Matheson, treasurer of Glasgow City Council, said yesterday he was prepared to take the lead and sacrifice any pay rises in the foreseeable future, but said it was a matter for the government to implement a freeze across the board and "live within our means".
However, one leading union figure has described the comments as "malicious and ill-informed", while the Labour Party has been called upon to signal its official position on the idea.
Such a move could potentially have an impact on millions of workers across Scotland.
Mr Matheson, the first member of the council to voice what many believed Glasgow was discussing privately, said 50% of the public-sector budget went on wages, rising to 70% within the health service.
A moratorium on pay increases would save tens of millions of pounds across the next year or more, he said, but failure to introduce this would result in massive job losses across the public sector.
Despite previous claims that it would not be "bounced into any course of action" by any individual authority, Mr Matheson said he believed that Cosla, the umbrella body for Scotland's 32 councils, was supportive of the plans.
He said: "The alternative to a pay freeze is cuts to both frontline services and potentially tens of thousands of jobs. I think there is a recognition that we need to take our share of the pain in order to get public finances back into some decent shape.
"I for one would be prepared to sacrifice a pay rise next year and would hope every politician would do similar.
"But Glasgow can only control its own finances and budgets so it's up to the government to take the lead, to step up to the mark and freeze pay across the public sector.
"They can't keep blaming a big parliament for leaving us in a mess and then running away. Inflation is currently at zero per cent, therefore we would be in line with that."
The proposal was attacked by Mike Kirby, the Scottish convener of Unison, the largest public-service union, and chair of its Glasgow city branch.
"These comments are malicious and ill-informed," he said. "All local government staff are in the middle of multi-year deals. There is a proper negotiating framework to address issues of pay."
Matt Smith, Unison's Scottish secretary, added: "To cut staff pay in a recession simply further deepens that recession, as fewer people have less money to purchase goods and services. Is Mr Matheson seriously suggesting he wants to further depress demand in Glasgow and the rest of Scotland?"
Gordon McQuade, secretary of the Central Scotland Fire Brigades Union, said: "At a time when MPs have just voted themselves a 2.3% pay rise, it would clearly be deeply disappointing if a real-terms pay cut for many thousands of low-paid workers in Scotland is being advocated."
A Scottish Government spokesman said: "This government is committed to ensuring that public-sector pay increases in Scotland remain affordable and sustainable. This is a realistic approach in the current financial climate.
"Given the tightest financial settlement provided to any Scottish Administration and the difficult economic conditions and uncertainties, it will continue to be necessary for a tight grip on pay increases to be maintained."
