A MILLION DAYS LOST
More than a million working days were lost to industrial disputes last year, the most since 2002 and almost double the annual average since Labour came to power in 1997.
However, Brown has shown no appetite for softening his stance on pay and government's current tussle with the unions is a far cry from the 1970s and 1980s when days lost to disputes averaged about 13 million per year and 7 million per year respectively.
In line with government policy, the Local Government Association has kept wage settlements for its workers broadly in line with the official 2 percent inflation target - offering most staff a 2.45 percent increase.
Unions say that with inflation hitting 3.8 percent in June, that translates into a pay cut. Food prices are up nearly 10 percent on the year, petrol prices are up nearly a third.
The LGA says any further pay increases would result in higher council tax bills for households or reduced services.
"We have simply reached the limit of what is affordable," said Jan Parkinson, Managing Director of the Local Government Employers. "In the current difficult economic climate we do not believe it would be fair to add to people's burden."
Economists have said Britain could plunge into a recession as the housing market spirals downwards and activity across service and manufacturing sectors weakens sharply.
But rising inflation - mainly due to soaring global oil, commodity and food prices - have put the government and the Bank of England on high alert.
"We cannot allow inflationary wage increases because that would mean that everyone, especially people on lower incomes, would suffer and nobody wants to see those days again," Chancellor Alistair Darling said on Tuesday.
