Unpaid wages of striking Newcastle City Council workers will be given to charity.
More than two million public sector workers across the UK are due to walk out on Wednesday over pension changes.
Newcastle City Council estimates about £100,000 will be saved and will go to the Newcastle Fund, which supports voluntary and community groups.
The pay of striking workers will also be deducted in February to ease financial pressures over Christmas.
Council leader Nick Forbes said the idea of giving the money to the fund was so communities would benefit from the strike.
He said the February pay deduction would come when there were no council tax payments for workers.
"Many of these people are low-paid front line workers. It's our way of being able to help people at the time of year of Christmas", he said.