Sutherland Shire Council has rejected a union claim that about $10 million a year is being paid to contractors for work that could be done by council employees.
A council spokesman said, "during the last financial year, expenditure on engaging staff through labour hire firms was $5.3 million - less than five per cent of our overall staffing costs over this period".
The council also denied ever stating work should be divided evenly between its employees and contractors.
"Council does not - and has never had - a policy of maintaining a 50/50 split between salaried staff directly employed by council and those engaged through contract roles," the spokesman said.
The United Services Union has been campaigning in the shire in recent weeks as part of state-wide opposition to the contracting out of council jobs.
A truck with a message painted on the sides has been parked in high-visibility areas, and flyers handed out.
The union claimed information provided under Freedom of Information laws showed Sutherland Shire Council had "massively increased its reliance on contractors, paying out about $10 million a year".
USU regional organiser Rudi Oppitz said work being contracted out included parks and gardens maintenance.
"The council already has plant and equipment, but for various reasons they decide to contract it out," he said.
"The issue for the USU is it should be work carried out by council employees and there are opportunities to employ more people.
"Our members tell us that contracting out costs ratepayers money and the quality is not at the same level as what employees would do."
The council spokesman said the state-wide union campaign was timed to coincide with negotiations currently underway on a new industrial award.
"Many of the more than 1300 dedicated staff directly employed by council are residents of Sutherland Shire and have a keen understanding of the needs of our community and a passion for delivering the quality infrastructure and services our community relies upon," the spokesman said.
"Council prides itself on being an employer of choice for each of these staff members, and our role as one of the largest employers and service providers within Sutherland Shire, ensuring economic and social benefits return to our community.
"To ensure that the more than 300 services we provide to our community are delivered in a timely and efficient manner.
"Council does supplement our salaried staffing component with additional contract roles, which allows us to be responsive to the dynamic and shifting needs of those we serve.
"These can include boosting resources to meet seasonal demand, engaging specialists to meet specific short-term needs, or to undertake works and projects that require large scale, specialist equipment and operators - all of which ensure the services our community expects and deserves are provided."
The spokesman said the council maintained contracts with a number of businesses, the vast majority of which were locally based and employed local people.
"Council has established processes in place to monitor and evaluate the performance of any contractor we engage to ensure ratepayers receive value for money," he said.
"Council does not - and has never had - a policy of maintaining a 50/50 split between salaried staff directly employed by Council and those engaged through contract roles."