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Council reaches equal pay deal with unions Birmingham City Council agrees huge equal pay deal
(33 minutes later)
Union members have protested for several years over the claimsUnion members have protested for several years over the claims
Birmingham City Council is due to settle thousands of equal pay claims more than a year after it effectively announced bankruptcy. Thousands of women are set to have their equal pay claims settled with a council after several years.
Employees of the local authority and Birmingham Children's Trust will have their claims settled but the full terms of the agreement will be confidential. The agreement between Birmingham City Council, Unison and the GMB union will see 6,000 staff with the authority receive settlement payouts.
A proposal will be presented to the council's cabinet on 17 December to seek formal approval, the authority said. The equal pay issue was one of the key factors in the authority declaring effective bankruptcy last year when it said it was facing a bill of £760m to settle the claims.
A spokesperson for the union Unison said women at the council would "at last get the pay justice they deserve". The details of the agreement are confidential and the council's cabinet will be asked to formally approve it on 17 December.
The dispute relates to claims staff in female-dominated roles, such as teaching assistants, have historically been underpaid in relation to those in male dominated areas of the council, such as waste collection. The dispute relates to claims staff in female-dominated roles, such as teaching assistants, have historically been underpaid in relation to those in male-dominated areas of the council, such as waste collection.
The council declared effective bankruptcy last year. It signed off a budget earlier this year which included £150m of cuts over the next 12 months with another £150m of cuts planned next year. The campaign for the 6,000 women was launched four years ago, the GMB union said, and talks restarted in November.
"This result would not have happened without their dedicated and tireless leadership of a campaign which was overcome huge odds," Rhea Wolfson, from the GMB, added.
The settlement was a "good day for low-paid women" at the council, Clare Campbell, from Unison, said.
"They will at last get the pay justice they deserve," she added.
"This will hopefully be the much-needed turning point for staff, services and local communities across the city."
Rhea Wolfson, from the GMB union, praised the thousands of woman who would now see their claims settled
The council started paying out equal pay claims after a landmark case was brought against the authority in 2012 but said in 2023 the bill had spiralled to £760m.
However earlier this year, Max Caller, the lead commissioner appointed by the government to oversee the financial recovery of the council, said the bill to settle could be below that.
Sally Maybury, a former admin assistant at the council, was one of 174 people who won the ruling at the Supreme Court more than a decade ago.
She previously told the BBC: "I felt undervalued and treated as if I was worthless."
"It was very difficult, I was earning about £18,000, but as soon as I hit £22,000, there were no more incremental pay rises so my salary was kept quite low.
"I remember one year, my tax credits went up, even though my salary didn't - that's just crazy."
Councillor John Cotton, leader of the city council, said the agreement marked the end of "an intense period of dialogue" between the authority and its unions.Councillor John Cotton, leader of the city council, said the agreement marked the end of "an intense period of dialogue" between the authority and its unions.
"It is an important step on the council's improvement journey," he added."It is an important step on the council's improvement journey," he added.
"I would like to put on record my thanks to GMB and UNISON for the constructive way in which they have approached these negotiations." Settlement could affect council's sale of assets
Rhea Wolfson, from the GMB union, described the agreement as "historic" Today's news draws a line under what is, arguably, the defining issue of Birmingham's financial struggles.
The agreement was described as "historic" for women at the council by Rhea Wolfson, the GMB union's head of industrials relations. It will come as a huge relief to bosses at an effectively bankrupt local authority already dealing with making £300m of cuts over two years.
"This result would not have happened without their dedicated and tireless leadership of a campaign which was overcome huge odds," she added. What will offer even greater comfort is the level of the settlement.
The settlement would be a "good day for low-paid women" at the council, Clare Campbell, from Unison, said. Up to £760m was thought to be the worst case scenario but we understand the final figure to be hundreds of millions lower – somewhere about £300m-£400m.
"They will at last get the pay justice they deserve," she added. The obvious question now is will this reduce the level of cuts needed in the city?
"This will hopefully be the much-needed turning point for staff, services and local communities across the city." The answer is probably not.
The cuts already in the pipeline are more to do with overspending in other areas.
What could change is the level of assets sold off by the council.
These were being sold to balance a £1bn government loan to offset, principally, the equal pay liability.
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