Union fury over public sector pay
Updated on 05 July 2009
The Government is facing a serious clash with trade unions after Chancellor Alistair Darling failed to rule out a pay freeze for public sector workers.
Union leaders warned any attempt to impose real-terms pay cuts would spark demands for strike action and said money should be raised instead from a crackdown on bank bonuses.
Mr Darling said wage levels, to be announced within weeks, would have to reflect the low level of inflation and be "fair" to private sector workers facing a recession-fuelled pay squeeze.
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