Bin workers in Birmingham have returned to the picket lines, after more than 100 were sent redundancy notices.
The seven-week dispute had been put on hold after an agreement was struck by the Unite union and Birmingham City Council Leader John Clancy.
The council cabinet have now rejected the deal, and issued redundancy notices to 100 Grade 3 workers.
A cabinet meeting, which was due to take place today, was cancelled last night.
Unite warned that if the deal fell through their members would return to the picket lines immediately.
Picket lines have been set up on four depots across Birmingham.
Workers say they are "bitterly disappointed" that the deal has fallen through.
They say they have "no course of action but to resume industrial action".
Richard Beddows, shop steward at the Perry Barr deport, said the "red line" for workers was safeguarding the Grade 3 roles.
The strike could continue until the new year, Unite has warned.
The current notice for industrial action lasts until 21 September.
However, Unite have planned to re-ballot their members to continue striking for a further 12 weeks after that date.