All council leaders have put their names to a letter demanding extra cash from the Scottish Government to avert a summer of strikes.
Town hall bosses warned Nicola Sturgeon that a failure to resolve the dispute will damage the mental health of workers.
Council umbrella group COSLA is responsible for pay talks with staff and has offered a 2% rise.
However, with inflation predicted to hit 10%, critics say the offer amounts to a significant pay cut.
The GMB trade union is intending to ballot their school, early years and cleansing service members, while Unite is initiating ballots in all 32 council areas.
With Unison also revealing huge support for industrial action, key council services could be brought to a standstill.
Every council leader, including SNP figures, have backed a letter to Sturgeon and Finance Secretary Kate Forbes calling for more central government help.
Penned by councillor Gail Macgregor, COSLA’s resources lead, the letter states: “I write to you today, on behalf of all 32 Leaders, to seek an urgent meeting with you and our Trade Union colleagues to discuss the ongoing impact of the rising cost of living on our workforce and to understand what further support you can provide to ensure a revised offer can be made.
“Without effective engagement the distinct likelihood of industrial action grows ever stronger at a time when we are trying to ensure our communities recover from the impact of COVID.
“This is not only those receiving essential care services, but also our children and young people being in school, and our wider essential services ensuring our local economies continue to revive and rebuild – this will have serious implications for all areas of Scottish society.
“You will fully appreciate that action being taken has now been further heightened by the announcement for Rail colleagues of a 4.2% rise. This has further raised, and rightly so, the expectations of our workforce who without certainty of a pay rise, and acknowledgement of the critical role they play, continue to feel undervalued and will struggle financially.
“The longer negotiations go on, against a backdrop of a cost of living crisis, the more likely that many of our workforce will experience poorer mental health and wellbeing outcomes.”
The letter added: “We are now faced with a situation where for Scottish Local Government to match our workers pay settlement with colleagues in Rail would mean an extra £185m.
“This would have to be taken from within our current budgets and directly impact both vital services and jobs across Scotland, as our ability to address shared priorities such as COVID recovery and economic transformation.”
COSLA also requested an urgent meeting with the First Minister.
The call came as Forbes prepares to announce a four-year spending amid fears of a £3.5bn black hole. Poor income tax receipts, rising welfare spending and pressure on public sector pay are all factors behind the funding challenges.
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