There is still a threat of strike action hanging over the talks

A local authority meeting heard it needed to raise �13.5m to meet the costs without increasing council tax.

The compensation claims are from caterers, cleaners and carers who say they have been underpaid for years.

Union members will meet on Tuesday to consider whether to carry out strikes planned for later this week.

The council is proposing to give out �13.5m in retrospective pay to about 2,000 staff.

New offer

It hopes to raise the money without passing the extra cost on to the public so is looking at which assets it can sell off.

On Monday, the council's urgent business committee approved the new offer to trade unions.

If the offer is approved, the staff - who are mainly women - could receive the payments of about �6,000 within the next four to six weeks.

The council's corporate director Gordon MacIntosh, who has been leading the negotiations, said he believed the offer was fair and hoped it would lead to an early settlement.

He stressed that the additional costs would not mean an increase in council tax.

The council is also still hopeful that the Scottish Executive will help towards the financial settlement.

However the T&G union warned the money being offered may not be enough.