Gordon Brown has been urged to adopt a new approach to public services in an effort to rebuild what has been seen as the low morale of millions of workers.
TUC leader Brendan Barber said deferred pay rises and "ill thought out reforms" had led to a crisis of commitment.
He said Mr Brown, who will succeed Tony Blair as prime minister, should work with employees to improve services.
In March, unions were angered by below inflation public sector pay rises, paid in two stages, the lowest for 10 years.
Mr Brown said he had accepted recommendations from the pay review body that awards be kept within the government's 2% inflation market.
Two strikes
The unions have also been angered at government plans to cut 100,000 civil service jobs and privatise services. There have already been two national strikes - in January and May - on the issues.
The government has said no organisation "can be immune from the need for change" to ensure value for money and adopt to new technology.
"A toxic cocktail of deferred pay, service cuts, privatisation and endless reorganisation has produced a crisis of commitment and morale"
Mr Barber, general secretary of the TUC, said ministers had brought in NHS reforms without consulting staff or patients, while efficiency programmes in the civil service were not working.
The TUC's submission to the Comprehensive Spending Review - due to take place in the autumn - said the new prime minister should involve unions and workers more in decisions on public services.
'Super rich'
Mr Barber said: "Public services need a fresh start. A toxic cocktail of deferred pay, service cuts, privatisation and endless reorganisation has produced a crisis of commitment and morale."
He said reform was usually done "to public services, not with them".
"A new approach should be on the top of Gordon Brown's in-tray. He should end the jobs cut arms race with the other parties, and instead start a national debate on how best to pay for the modern public services the country needs."
He added that, rather than acting on CBI calls for lower business tax, Mr Brown should look at green taxes and crack down on "tax avoidance by the super-rich".
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