The dispute concerns 17 building maintenance workers who face redundancy because their current employer, MRS, has lost the council's contract (LGC, 4 April).
But because of the way the new contract has been let the council says TUPE does not apply.
It wants MRS, which says the staff should transfer to the new contractors under the same terms and conditions, to pay the redundancy costs of the workers - understood to total £180,000.
'St Albans should stop pointing the finger at MRS and sit down and work out an acceptable solution,' said Unison eastern region officer Willy White.
He said the dispute would go to an industrial tribunal if a solution was not agreed.