UNIONS will oppose proposals to either privatise or merge some council services as part of public sector cuts.
Darlington and Hartlepool borough councils are preparing to debate different proposals to share some of their services that could save a total of £8m.
Other proposals include expanding existing partnership arrangements, outsourcing to private and voluntary sectors or the creation of charitable trusts.
But the plans have angered union members.
Bob Wood, Unision spokesman in Darlington, said: "It is massively uncertain for our staff when they don't know what jobs are at threat or don't know if they will be outsourced to the private sector or merged with another council. It seems very vague.
"It's one thing after another for our staff after the cuts. The staff are under attack from many fronts, while at the same time trying to provide the best service they can.
"We are totally opposed to any privatisation. We believe public services should be provided by the public sector."
Background papers in Darlington have been drawn up for a meeting of its cabinet group, which will meet on Tuesday, while Hartlepool's cabinet does not meet until the following week.
Council leaders said the new plans could be shared across children and adult social care, education services, leisure, environment, regeneration and other areas but insisted it will not affect its frontline role, saying the public "would not notice any difference".
Councillor Bill Dixon, leader of Darlington Borough Council, said: "We have to choose whether we take a knife to our services or do we try and develop a strategy to try and retain as many frontline services as possible.
"Our preferred method is to retain frontline services for Darlington. We want to find ways of doing things cheaper."
Charles Johnson, deputy leader of the Conservative group, said: "This is a good idea, but it's a pity it's a bit too late. We could have been doing this a few years ago to minimise our costs.
"By and large, we are supportive of the idea to explore the possibilities and see what can be done."
Hartlepool mayor Stuart Drummond said: "Hartlepool council has an excellent track record of working together with other organisations and in the current economic climate, joint working is becoming increasingly important."
Darlington's cabinet meets at 5pm on Tuesday at the town's university campus.
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