THE Government was last night facing the biggest industrial dispute since the 1926 General Strike after union leaders decided to ballot 1.5 million council workers in a row over pensions.

Eight trade unions representing workers including school dinner ladies, teaching assistants, social workers, librarians and refuse collectors are responding to planned cuts to their pension scheme.

And the Fire Brigades Union is expected to ballot firefighters for strikes next month in the same dispute.

Voting will start in the next few weeks, putting the Government on a collision course with the country's most powerful unions.

Heather Wakefield, national officer of Unison, said if the stoppage goes ahead it will be the biggest since the General Strike 80 years ago.

Dave Prentis, Unison's general secretary, said it was the biggest issue the union had faced in decades.

He said: "It affects the rights of one million of our members who have paid six per cent of their salaries into their pension scheme for decades, to save for their retirement, and are now being told the deal is off."

The Local Government Association said the union announcement was deeply disappointing, adding that council taxpayers could not afford to pay more for workers' pensions.

Chairman Sir Sandy Bruce-Lockhart said: "Local government staff retire at 65, compared to the rest of the public sector at 60, and this is the best way forward.

"The employee staff contribution compared to the employer council tax contributions are currently not balanced and this must be addressed.

"In the long run, the current pensions scheme for council staff means that early retirement on full pension is not an economically-viable solution for council taxpayers and employers, and not fair to many employees."

Talks to resolve the row have been taking place for a year, but union leaders decided yesterday that they had to threaten industrial action to break the deadlock.

Unions have complained that local authority employers wanted to cut pension rights without protecting all workers in the scheme.

Employers wanted to scrap the so-called 85 rule, under which workers whose age added to length of service was 85 years could retire early - so a worker aged 60 with 25 years' service did not have to wait until he was 65 to retire.

Amicus general secretary Derek Simpson said: "Local government workers already have a worse scheme than other public sector workers and suffer extremely low pay, earning as little as £12,000 a year in stressful and physically-demanding jobs, at the front line of our public services.

"All we are asking is for their equal treatment with other public sector groups who have had their existing pension benefits protected by the Government."

In the North-East, Amicus regional officer Gerry Hunter said: "Instead of talking to us, the Government and council employers are imposing the pension changes - and it is outrageous.

"They are forcing people who have many, many years' service with local authorities into action that they don't want to take - but they have seriously got to consider industrial action to protect their pension. It is tragic."

Transport and General Workers Union general secretary Tony Woodley said: "All we are looking for is a fair pension deal for local government workers.

"These workers signed a contract with their employer - the state - that agreed the terms for their retirement.

"It is unacceptable and unjust, then, that the employers now want to change these rules."