Transport workers at Sandwell Council are set to lose thousands of pounds a year in a pay shake-up, it has been claimed. One worker said he will lose more than £7,000 a year.

The council is slashing incomes as part of a £4.1 million Government-imposed review. The worker, who did not wish to be named, is based in the signs department and said he will lose out on £7,500 when the new pay scales are brought in on January 1, 2009. He claims the change will take his annual wages down from £23,000 to £15,500.

He said: “My bills alone are going to be more than my wages are going to be. I just don’t know how on earth they expect people to live.”

Sandwell’s opposition Conservative group leader Councillor Tony Ward said: “It’s all well and good to say these people have been earning too much money, but we simply can’t take all that money off them.

“We are going through a serious economic downturn where people are suffering already. You can’t simply take a third of their income off them.”

About 1,400 council workers in total are expected to lose money, with an average reduction of £1,400 a year.

Binmen and lollipop ladies are already considering strike action after wages were slashed, with some refuse workers claiming their wages will be cut by up to £8,000 a year.

Meanwhile, some staff claim they are still waiting for letters that are three weeks overdue, informing them of their new salaries.

Councillor Pauline Hinton, Sandwell Council’s deputy leader said changes were necessary to put an end to historic pay inequalities.

She said: “While I cannot discuss individuals’ pay, on a general point I would like to say we are seeking to end concerns about pay inequalities that have affected local government nationwide for decades. Councils nationwide are legally required to bring in new single status agreements so employees are paid according to principles of equality.

“Around 87 per cent of the council’s 10,800 workforce will see their pay increase or stay the same.

“A minority of about 1,400 staff across the whole council will see their pay decrease by an average of £1,400. We are protecting pay for these workers for the first 12 months up to £4,000.” She added: “There is an appeals process.”