The pay shake-up angered staff at the council

The threat of industrial action has now been withdrawn.

A total of 2,000 workers had been told by letter that they faced major wage cuts but the council has agreed to withdraw the letters.

Council bosses have also agreed to enter into fresh talks with the unions. The cuts were announced as part of a national single status pay scheme.

The amounts varied between �1,000 and �20,000 a year.

This is the third council that has tried to implement this agreement, and it's not working Karen Donnelly Unison

Workers were told the outcome of the discussions at a mass meeting in Aberdeen's Beach Ballroom.

But the unions said what had happened in Aberdeen raised important issues for all councils in Scotland.

Unison official, Karen Donnelly said discussions were needed at a national level.

"This is the third council that has tried to implement this agreement, and it's not working," she said.

"We need to take stock of that nationally as well as locally and move that forward.

"We need to keep the pressure up to get Holyrood involved in this debate."

The most cynical among us might say it's taken this length of time because everyone knew how difficult it was going to be Linda Knox Strathclyde University

The dispute centres on the council's plans to implement the nationwide pay restructuring scheme, aimed at bringing salaries into line with equal pay legislation.

Linda Knox from Strathclyde University said: "This has been going on since 1999. The most cynical among us might say it's taken this length of time because everyone knew how difficult it was going to be.

"I seriously doubt that the Executive would be deeply overjoyed at the prospect of putting money in.

"On the other hand they would be seriously less than overjoyed at the prospect of increased council taxes."