Banner-waving council staff are planning a noisy demonstration in York city centre tomorrow as crunch pay talks begin.

Members of the Unison union will gather in St Helen's Square outside the Guildhall, where union bosses and council managers will clash on the first day of what are expected to be difficult negotiations.

Protesters brandishing "No pay cuts" placards will demand that the council immediately withdraw "insulting" proposals for pay cuts.

The talks, which could last up to three months, are over the Single Status Agreement on pay and conditions, which comes into force on April 1 next year.

It gives workers the right to a 37-hour week, but the City of York Council claims this will push up the wages bill by an estimated £800,000, a sum it says it simply cannot afford.

But Unison is furious that the council proposes to claw back this cash by abolishing higher rates of pay for overtime, weekend work and shift work. These are included in a list of measures which the council says are suggestions for saving money.

Peter Household, Unison convenor, said: "I have never seen Unison members so angry. Without any doubt we shall be forced to take strike action if they don't withdraw this.

"The proposals would backfire anyway. Who is going to work extra hours to sweep the streets at weekends or work all night looking after old people if they are expected to do this for plain time?"

The Single Status Agreement is an initiative aimed at "harmonising" terms and conditions between white and blue collar workers. It has been agreed between unions and employers nationally, but certain provisions have been left open to settle locally.

David Finnegan, the council's chief negotiator, said: "We will be trying to establish common ground with the unions tomorrow. I am positive and optimistic that I can explain the costings to them. We need to agree on the amount to be saved before we can start discussing how to save it."

He said he was going to the meeting with an open mind.

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