The Scottish government has extended its commitment to no compulsory redundancies for its own staff for another year - until March 2012. Agreement was reached following discussions between the Council of Scottish Government Unions and Finance Secretary John Swinney.

Swinney said: "There is a real benefit in providing security of employment in uncertain times to the dedicated and professional staff who work in all parts of the public sector.

"That is why it is excellent news, that as an employer, the Scottish Government has been able to reach agreement with the unions on no compulsory redundancies.

"Of course that is dependent upon staff being flexible, but that is absolutely vital in the current climate, when we face substantial cuts in our budget from Westminster."

He added that the Scottish government wanted to extend this type of agreement across the public sector in Scotland and was working closely with its partners to achieve this.

Prospect national secretary Alan Denney said that as part of the agreement, redeployment would be considered first for all potential redundancies that arise.

The Scottish Budget approved in Holyrood on 11 February meant a budget reduction of near to £750m in the next 12 months.

Denney said: "It is early days to see where the axe will fall. However, voluntary severance/exit schemes mean that nearly 600 staff will be leaving the Scottish government workforce alone before the summer.

"Alongside reductions in the number of temporary staff and contractors, it will mean more than 10 per cent of the workforce leaving. There will have to be significant restructuring, and vital work will not be done."