PENSION schemes could collapse if public sector workers are priced out of paying into them, union members warned last night.

More than 75,000 local authority and health staff in the North East are being balloted on strike action after the Government published plans to amend local government packages by increasing contributions and changing accrual rates.

Nurses, social workers and bin collectors who belong to Unison could join a national day of industrial action on November 30.

Council bosses and health chiefs have insisted contingency plans would ensure disruption was kept to a minimum.

Unison members said the strike would be a last resort and urged ministers to come up with fairer proposals. Josie Bird, 32, an admin assistant for Newcastle City Council from Coxlodge, Newcastle, said changes would be a “tax” on public sector workers.

She said it was a myth that public sector workers had “gold-plated” packages and on current estimates she would retire with a pension worth £3,361 per year.

She said: “People will start asking themselves ‘can I afford to pay into the pension scheme?’

“If people start to come out of the scheme it means that more people will rely on state benefits when they retire.”