HERTFORDSHIRE County Council has approved a staffing agreement that could save up to £10.7 million a year.

Councillors have now ratified an agreement with trade union UNISON on changes to staff terms and conditions – changes that will cut salaries, costs and statutory sick pay.

Staff were warned they could be dismissed and immediately rehired under the revised terms if they did not voluntarily agree to their new contacts.

Deputy council leader David Lloyd said: “Despite the tough economic conditions we are facing, Hertfordshire County Council is determined to continue to provide the high quality services that our residents rely on.

"We have already put into place efficiency measures that will save the council £135m over the next four years, but we need to do more in order to safeguard frontline services.

“Our intention throughout has been to make any changes with the support of UNISON, so the final successful round of talks and resultant agreement is a really positive step. Both the council and UNISON believe this agreement provides a responsible balance between the need to find savings and protect jobs and frontline services.

"This has been a difficult time for staff and we have tried to involve them throughout the process. We really appreciated their input and some of the suggestions made by employees have been included in the final package."

Changes will take effect from April 1, 2012, and will be contractually binding for around 24,000 employees, including those based in schools.