A new single status pay structure for a Black Country council’s staff may be ready within three months.

Sandwell Council officers told an audit committee meeting that a new pay deal was now on the table for union representatives.

It sets out new payment terms for nearly 10,000 employees. The council has already earmarked £10 million in its reserves to cover the potential financial implications of the new pay structure. The new single status agreement could see some council workers’ wages slashed.

Others could see increases following a review of all wages at the local authority.

The proposed changes were originally due to go before workers last September and be in place by November 2008.

However, negotiations with workers’ unions have taken longer than predicted.

Similar reviews are being carried out at local authorities throughout the country under the Government-imposed single status scheme, designed to end pay inequalities.

A report was requested by audit committee members after the financial situation had been flagged up on its strategic risk register.

Finance boss Lynda Bateman told Monday night’s meeting they were confident the council would not need any more money than the amount already set aside.

“It will remain on the risk register until we have got a final new payment structure in place,” she said.

“It is still in discussions but what I can say is the offer on the table is affordable to the council.

“It is in line with what we have allowed for in our three year budget.

“We are hopeful that over the next three months we will come out with a deal that is affordable.”

The potential impact of the pay review on ‘sustaining an effective workforce’ has also been included on the risk register, with a score of 16 – the joint highest risk to the council alongside £63m arts centre The Public.

It is feared the changes could lead to low staff morale and high staff turnover.