MILLIONS of pounds in savings are to be made from changing the terms and conditions of thousands of council workers across the county.

Council workers, already facing pay freezes, face being hit by reductions in redundancy compensation and an end to incremental pay rises.

Oxfordshire County Council, the county’s largest employer, yesterday set out proposals to change the terms and conditions of more than 20,000 council staff and teachers.

It says the measures will save £4m and help to limit the number of job losses at County Hall, with the council seeking to save £155m between now and 2015.

The public sector union Unison is now balloting members on the proposals.

But they were yesterday described as “a kick in the teeth for Christmas” by the union’s regional organiser, Steve Waite.

The county council is not alone in being in the process of steering through money-saving changes in the terms and conditions of staff.

Oxford City Council, and South Oxfordshire and the Vale of White Horse District councils are all holding talks with staff on a wide range of changes certain to hit workers in the pocket, as local authorities face cuts of between 25 and 30 per cent in central government grants.

The county council proposals centre on reducing the size of redundancy payments, certain to affect some of those set to lose their jobs in the coming months. It has been projected that 1,000 posts at the county council could go.

Car mileage rates are also to be reduced and at least 1,800 staff are expected to be hit by freezes in incremental pay rises, automatically gained through experience within defined salary bands. This incremental element of the plan will not apply to teachers.

The measures come at a time when public sector pay has been frozen for two years for those earning above £21,000 a year.

Those earning below £21,000 will receive a £250 pay rise, under terms announced in Chancellor George Osborne’s emergency budget.

Keith Mitchell, leader of Oxfordshire County Council, said: “We understand the difficulties staff face in coping with the pay freeze and other measures to save money.

“We have always tried to work together with our staff and union representatives in Oxfordshire, and they deserve real credit. They have been mature and forward thinking in their discussions with us.

“Our common aim is to release money that will make inroads into the level of cuts we will have to make, preserve services for the people of Oxfordshire and keep people in jobs.”

But Unison representative Mr Waite described them as “draconian measures”.

He said: “Workers in the county are facing a double blow. Having already had a pay freeze, they are now facing reductions in their basic terms and conditions.

“Oxfordshire County Council staff are not overpaid, do not have gold-plated pensions but are still being kicked in the teeth. They will see this as a wonderful Christmas present.”

He said the union was in the process of consulting its members at the county council about the proposals.

A spokesman for South Oxfordshire and Vale of White Horse District Councils, which shares senior management, said the councils were consulting on reducing redundancy entitlement for redundancies agreed after April 1, 2011.

They are also seeking to phase out lump sum allowances for essential car users.

There are also proposals for a pay rise in April 2011 of £250 for employees earning up to £21,000, and £100 for employees earning up to £25,000. Pay would be frozen for employees earning above £25,000.

Cherwell District Council is proposing to extend the £250 pay rise to staff earning below £25,000. It has scrapped a negotiated local agreement for a 1.8 per cent across the board rise, which it says will save taxpayers £165,000 next year. Cherwell agreed to freeze incremental payments at the beginning of the year.

Oxford City Council spokesman Louisa Dean said: “We are currently consulting with the trade unions about the possibility of changing the terms and conditions for staff. We are looking at conditions including car mileage rates and incremental pay progression.”

Union anger will be compounded by recent figures that showed some of the highest paid people in the public sector in Oxfordshire are employed in local government, with county council chief executive Joanna Simons topping the local table on £189,158.