"A confusion is being created that contractual employees are being removed which is not true. I myself recruited 65,000 employees, though the announcement was of one lakh workers," Azam told reporters here.
"This being the case, the government may declare the strike illegal and take stern measure," he added.
Local bodies staff started an indefinite strike from today demanding restoration of services of contractual employees.
Khan said that unions related to local bodies had held a meeting over the issue with officials yesterday and the leaders had left satisfied.
"The problem is that we want to reform the system. If the employees and officials are not ready to perform then strict action has to be taken done," the Urban Development minister said.