Changes are being made to culture and leisure services

Unison had demanded an interim interdict and a judicial review at the Court of Session to prevent the council going ahead with the plans.

Judge Lord Clarke refused the interdict but allowed the union to pursue a review of the plan.

Culture and Sport Glasgow is due to take over facilities from Sunday.

Unison claimed that the new company, which is due to take over facilities from Sunday, will be unaccountable and will compromise terms of employment.

It said the transfer, involving more than 2,000 staff, breaches the 1887 Public Libraries Act.

We are certain that this charitable company will prove be a tremendous boost towards achieving the city's ambitions for culture and sport Council spokesman

The council said the transfer will improve services, widen the funding base for facilities.

Gerry Moynihan QC, acting for the council, told the court that the arrangements would result in a "fiscal advantage" of about �6m a year and that has been built into the budget.

Mr Moynihan said about 2,400 staff would be transferred under the plan.

He said the council was about to sign the transfer arrangements when it learned of the court move.

Laura Dunlop QC, acting for Unison, said there were competing contentions over whether an earlier piece of legislation which was crucial to the case had been repealed or not.

Community centres

Lord Clarke said that for this reason, he could not reach a decision on the question of law raised in the action.

Glasgow is the largest local authority to place its leisure services in trust with more than 30 libraries, 13 museums and 40 community centres.

Mike Kirby, convener of Unison's Glasgow City branch, said: "To discard hundreds of hard-working staff, snatch libraries, museums and leisure centres away from the people of Glasgow, and to breach the law in doing it is bad enough.

"To do it as a tax dodge is worse."

A Glasgow City Council spokesman said: "The council had acted lawfully, having received external legal advice from a QC on the matter, before taking the decision to establish Culture and Sport Glasgow.

"We are certain that this charitable company will prove be a tremendous boost towards achieving the city's ambitions for culture and sport."