Sefton Central Labour MP Bill Esterson said he was pleased the 5% pay cut threat to Sefton Council staff had been lifted.
The MP said the percentage cut would have felt even greater to ordinary council workers because inflation was on the rise.
Bill said: "A 5% pay cut is a large portion of someone's wages, particularly when you consider the price of living is shooting up.
"This pay cut would have equated to nearer 12% when you take into account inflation.
"Cuts in pay of the scale suggested would put a huge strain on hard pressed staff and their families and would further hit the economy of Sefton and local businesses who rely on the money from public sector staff who are many of their customers.
"That is unfair and unjust and I am pleased that these proposals were rejected by Labour and opposed by the unions in Sefton.
"It is only because of this concerted opposition that the council have now removed the threat.
"What we need to work to now is ensuring that we safeguard vital council services which the vulnerable of the borough rely on and we must work to try to avoid any compulsory redundancies for council staff.
"It is only by the Labour Action Teams and councillors fighting the Lib Dem and Tories' slash and burn plans that we can ensure that Sefton Council workers are properly represented and that council services are safeguarded.
"These ill-thought out cuts are an attack on people in the North West, the people of Sefton and particularly the most vulnerable in our communities.
"We need to stand together to oppose the cuts in every way that we can."