Hammersmith & Fulham council in west London has effectively sacked its entire workforce and demanded that 4,283 employees reapply for their own jobs on worse conditions.
The Tory council has issued “Advance Notification of Redundancies” to all workers.
Proposals in the contracts include cuts in annual leave and maternity leave, an extended working week, a draconian new sick policy and attacks on flexible working.
The council had invested £950,000 in the failed financial institutions Lehman Brothers, AIG and Merrill Lynch.
The Unison union has described the attacks as a “gross betrayal” of staff.