A CONTROVERSIAL 'pay by performance' tactic is set to hit council workers in Worcestershire - with unions refusing to rule out strike action.

Your Worcester News can today reveal how fresh cuts to terms and conditions are on the cards for staff at Worcestershire County Council in one of the biggest shake-ups in years.

The changes at cash-strapped County Hall include:

- All middle ranking managers face future incremental pay rises "linked to annual performance", with money held back if they fail to meet a strict set of targets

- A 'redundancy cap' so no worker can leave with a payout from taxpayers in excess of £35,000, instead of the previous limit of £50,000

- Mandatory unpaid leave of three days a year, which was first introduced in 2011 despite fierce union criticism, will be extended to 2020

- An existing salary protection scheme, which means workers who take on lesser-paid jobs after a restructure get the first 10 per cent of a salary cut protected for three years, will get that benefit for just 18 months

The performance-related pay will hit all staff in what the council calls 'principle officer' roles - more than 630 middle managers earning around £30,000 or more.

But the move is aimed at saving public money as well as appeasing taxpayers by capping redundancy handouts.

The three days unpaid leave, which forces all workers to stay off without getting recompense, was due to be reviewed in 2016 but the council's Conservative leadership wants to end any uncertainty over it.

Following talks Unison says it has balloted more than 2,000 members, and is refusing to rule out a damaging walk-out in the event of the measures not being accepted.

Jim Price, County Hall's Unison branch secretary, said: "It's disappointing we're even having to discuss this - we last faced real cuts to terms and conditions in 2011 and at the time were told they would be the last ones.

"If the vote is to reject this, we'd have to move to another vote on industrial action."

Councillor John Campion, cabinet member for transformation and change, said the "challenging economic climate" and need to save £25 million a year was behind the proposals.

At the moment only 170 management workers in more senior roles get incremental pay rises linked to performance, but some of those have already hit the top of the pay scale.

He added: "We are fundamentally changing the way we work and continuously review how we can make savings and get most value out of our contracts.

“Reviewing our staff's terms and conditions has to form part of those considerations and the current proposals will help to reduce workforce costs, improve business efficiency, support the new ways of working and help to protect the essential front line services we provide to residents.

“After taking on board feedback from the unions the council feels these proposals strike a reasonable balance between responding to the challenges the council faces, and maintaining a competitive set of terms and conditions to retain appropriately skilled staff.

“It is important to note that these are proposals at this stage and the council hopes an agreement can be reached with the trade unions, who are currently in discussions with their members, over the next few months.”

The ballot will run until the end of January.

* What do you think? Should council workers face pay by performance deals? Email te@worcesternews.co.uk or call 01905 742248.