UNION bosses may walk back out on the picket lines if a Government threat to cap City of York Council's budget means more job losses.

Heather McKenzie, York Unison chief, said the union was determined to defend the jobs of its members after council leader Steve Galloway warned more posts could be at risk after local government minister Phil Woolas said the budget and council tax in the city was too high.

The Evening Press reported yesterday, how the decision to place York at risk of capping was branded "perverse" by Coun Galloway, who said the Government was punishing city residents.

He said the authority had one of the lowest council tax levels in the country and lowest expenditure per head of population of any other council.

The council believes it has to trim £400,000 from its £100 million budget, but Coun Galloway warned "finding the further savings could add to job losses in the authority while putting in jeopardy the care services which we value so highly in York".

This year's budget process, branded by Coun Galloway as one of the toughest he has experienced in more than 30 years of local government, has already seen £5 million in efficiency savings and the loss of as many as 100 posts.

Now, a day after Unison workers walked out in a day of strike action to defend pension rights, Ms McKenzie said the union would vigorously defend the jobs of members.

"We will be trying to defend staff as much as we can," she said.

"We have been out on industrial action. If we have to make a show of force like this again to protest against job losses, then we will have to consider how to tackle it in the future.

"This news is alarming. York is one of the lowest spending authorities in the country. York is being punished again. People will see the difference in the level of services. I don't know where the Government is coming from on this."

Meanwhile, Coun Galloway said the authority would be working on the implications of the Government's announcement over the next few weeks.

"If the Government sticks to its guns we would be forced to cut around £400,000 of services from York's residents," he said.

"Given that we have already made more than £6 million savings this year, this will be very, very tough. It time the council tax was scrapped, not capped."

Council staff show anger at pension proposals

"WE'RE fighting to defend our pensions." That was the message from up to 300 striking council workers who staged this rally in St Helen's Square, York, as part of a national day of action.

Up to one-and-a-half million council workers across the country manned the picket lines yesterday in protest at Government plans to scrap a rule that allows many local authority employees to retire on a full pension at 60.

Heather McKenzie, general convener of York council's Unison branch, said pickets had been out in the city all day - with leaflets handed out to members of the public.

Yesterday's strike in York involved members of 11 local government unions. Fulford School and three city primary schools were closed.

A spokesman for Selby District Council said there was no major disruption and all services ran as normal but with a reduced level of staff.

Selby High School and Tadcaster Grammar School were both shut.

Updated: 09:50 Wednesday, March 29, 2006