HOUSING maintenance workers being asked to take a £50-a-week drop in pay have twice rejected a council deal which, it says, would have helped it compete against private companies.

The 58 men came out overwhelmingly against the cuts in both secret ballots, which were held at Wear Valley District Council, where about 20 maintenance jobs were lost earlier this year.

The council says it will struggle to compete against private companies when the service goes out to tender later this year.

But unions insist that the men are helping trim the budget by agreeing to work flexible hours and become multi-skilled.

Housing director Michael Laing said yesterday: "This leaves us in a very serious situation.

"We are benchmarking the service and the costs and conditions on August 2 are the ones against which the private sector will compete.

"We are in a competitive situation where we need to get our wage bill under control.

"We have reduced our management costs on the white collar side by £200,000.

"We have the lowest management costs in the country and some of the highest maintenance costs.

"Senior managers have taken on more responsibility. Instead of two housing managers, we now have one and where we once had five assistant directors, we now have three.

"The council wants to keep the contract in-house, but we are going to struggle under the current agreement."

George Stephenson, regional organiser for the Union of Construction, Allied Trades and Technicians, said the men had already made concessions.

He said: "Nobody is going to accept a £50-a-week pay cut. If the council doesn't win the contract, by law the jobs are automatically transferred and they would take the lower wage with them.

"They have already made huge concessions on flexible hours and multi-skilling and that should go a long way to make up the shortfall."

Amicus regional organiser Mike Routledge said: "The council talks about market forces, but if they look around, other councils are paying far in excess of their offer."

The council is offering gas fitters £390 a week, bricklayers and joiners £350 and labourers £270.