Staff at Neath Port Talbot Council have agreed to cuts in pay, overtime and travel allowances as part of the authority's cost cutting measures. The 7,000 workers have accepted a deal brokered by managers and the unions.
Welsh local government leaders said it was a "mature agreement" which would help safeguard jobs. The one-year agreement is aimed at minimising compulsory redundancies as the council looks to close a £24m gap in its budget by 2014.
Council leaders had warned staff they would dismiss and re-employ them on new terms if an agreement was not reached.
Interestingly, the council says it is the first authority in Wales to reach such an agreement.
Those staff earning more than £21,000 a year will see a one-off 2% drop in pay on top of a proposed three-year pay freeze.
This represents a sensible way forward. It will be interesting to see how many Councils can apply mediation in resolving these disputes.
Justin Patten Mediator