John Daley said many people will be struggling after the pay cut

The council wants to overhaul its pay structure to reduce long-standing wage inequality among staff.

John Daley, who has worked for the council for 26 years, said the change would slash his salary by over �6,000.

The council said it had to abide by equal pay legislation and only 14% of staff would see their pay reduced.

Mr Daley, a union representative, says working as a mobile caretaker means he is reliant on his car but under a new contract his vehicle may have to go.

They will be putting me on the poverty line and beneath it John Daley Council worker

"Come 2010, my pay is going to drop down to �16,700 which means the car they have given me on loan - I won't be able to afford that loan anymore," he said.

He added: "They will be putting me on the poverty line and beneath it.

"On �16,700 with my bills, same as everyone else, they can't afford to lose that amount of money."

Alan Rudge, the council's cabinet member for equalities and human resources, said of the 41,000 staff affected by the pay review around 45% would see a "considerable increase" in their salary.

He also said the rally outside the Council House in Birmingham was unwarranted.

"Well I can understand anyone wanting to make a legitimate protest about something - it's their right to do so," he said.

"Though I do think it would help if they get their facts correct. None of them are getting immediate cuts - they have a three-year protection period."