About 130 Wealden Council staff will be transferred to other employers if plans for a joint waste contract in East Sussex go ahead.
Five councils are working together to investigate setting up a contract for the county.
Rother has been nominated to administer the process on behalf of the new joint waste committee.
The other councils involved are Wealden, Eastbourne, Hastings and East Sussex County Council.
Wealden is hoping to save £500,000 through the process and today members of its cabinet are being asked to allocate £60,000 towards the procurement and support costs for the contract.
A report to the cabinet says about 130 Wealden staff would be transferred to other employers – either a private contractor or Rother District Council as the administering authority – if the joint service and contracting out goes ahead and it is likely the council would have to fund some redundancies.