Bournemouth council outsources HR and finance staff
Bournemouth Borough Council is set to transfer its human resources and finance departments to a support services company.
One hundred staff would be transferred to Mouchel on 1 December in a move the council claims will save £2.2m by 2020.
The council cabinet approved the move subject to a risk assessment looking into the firm's full year accounts.
But Unison warned it could lead to redundancies and said it was not a good deal for the people of Bournemouth.
Dave Higgins, from Unison, said the departments currently employ 121 staff.
'Scope for redundancies'
He added: "We need to think if this is in the best interests for the council, its staff and residents to proceed, and we don't think it is."
He added that the union could pursue legal action if the deal was agreed.
The council said there would be "scope for redundancies" whether the departments were outsourced or not but believed any losses would be met through natural wastage.
Councillor John Beesley said: "A long journey has brought us to the position we are now - a journey that has involved formal scrutiny, extensive financial appraisal and robust negotiation with Mouchel to ensure the best possible outcome for the council and our residents."
The Conservative-led authority cut its spending by £20m between 2007 and 2010 and plans to cut £9.2m in 2011/12.