Keith Sonnet, Unison head of local government, expressed his disappointment at the outcome:
'The offer of 2.9% is an insult to our members.
'Members have watched their living standards fall year after year with below the rate of inflation pay increases, and pay rises which have been consistently below increases in the private sector - and enough is enough.
Unison's local government national committees, which deal with pay negotiations, will meet today to discuss the offer and to consider consulting our members on the offer with a recommendation to reject and to consider our options, including industrial action.
The unions are demanding a national minimum wage of £4.15 per hour for all workers. White collar workers have put a figure of £1,000 on their claim, manual workers are calling for a substantial flat rate increase.