Workers at Mzuzu City Council have down tools, demanding that authorities pay them their three months salaries.
The workers are currently outside civic offices and have vowed not to return to work unless they are paid.
Human Resources Officer for the Council Clement Salema said the council is in huge financial problems emanating from failure to collect revenue from the city dwellers and market users.
He said after failing to sell some of its plots as a means of generating revenue for salaries, the council has now applied for a K300 million loan from one of the banks to solve the problem.