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Relations between unions and government have suddenly soured. As ministers warn that public sector staff can no longer enjoy the 'perks' of the past, union leaders promise confrontation. On the south coast the battle has begun

After a week in which unions at national level have threatened a rolling programme of industrial action over threats to their pensions and jobs, Southampton is leading the way in a battle of public sector workers against Tory rule.

There were some concessions to lower earners. Those earning less than ?15,000 would not pay more in contributions and those with salaries of between ?15,000 and ?18,000 would have their increases capped at 1.5%. But for some on middle and higher salaries the rises could be 5% of salary. This would mean ?1,500 in extra pension contributions for someone on ?30,000 a year.

This weekendhe went further: "I want to see this resolved by negotiation, but if the government are determined to push through a huge attack on people's pension entitlement, they are not prepared to negotiate in a sensible, reasonable, fair-minded way, then the unions will have no option open to them other than to try to defend their members through industrial action."

The consequences of a sharp rise in opt-outs are potentially catastrophic for the funding of schemes in the short and medium term. In the long term those who have opted out are left more dependent on state benefits in retirement, meaning an additional drain on resources. Eaton warned chancellor George Osborne in February that an average increase of three percentage points in contributions at a time of pay freezes and rising inflation was "likely to lead to a significant worsening in industrial relations". Her warning, it seems, was not heeded.

In Southampton, a straw poll of 20 shoppers had three-quarters backing the binmen. Peter Benson, 38 who used to be a refuse collector but now works for Mind, the mental health charity, said: "They are punishing the weak, the less well-paid." Bob Mallon, a pensioner born in the city, said that targeting those earning under ?20,000 was symptomatic of Britain's widening wealth disparity: "The rich are getting richer, the poorer are getting left behind. It's like we are heading back to Victorian times."

"The people that we represent are facing redundancy, a two-year pay freeze, while inflation is 5% and gas prices are going up 20%, and they are desperately worried about privatisation of the services they have committed their working lives to," he said