British Prime Minister Gordon Brown today held firm on public sector pay in the face of strike threats by more than a million civil servants.
"Let me be straightforward with you, pay discipline is essential to prevent inflation, to maintain growth and create more jobs," said Mr Brown in his first speech to the Trades Union Congress as prime minister.
Mr Brown has insisted public sector pay rises should be linked to the government's 2 per cent inflation target, but unions are angry, arguing that this does not reflect the true rise in the cost of living as prices have been rising much faster than that.
Unison, which represents 800,000 local government workers, has said it will ballot its members by the end of November with a recommendation to take industrial action.
The Public and Commercial Services union, which represents about 300,000 workers in central government, plans to ballot its members this month unless government makes concessions.