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After several years, Birmingham City Council has come to an agreement with Unison and the GMB union to settle equal pay claims for thousands of women. Approximately 6,000 staff members will receive payout settlements under the confidential agreement. The issue of equal pay had a significant impact on the council, which declared effective bankruptcy in 2020 after being faced with a bill of £760m to settle the claims.
The dispute concerns claims that the council underpaid staff in female-dominated roles such as teaching assistants, in comparison to those in male-dominated sectors like waste collection. Talks for the 6,000 women began four years ago, according to the GMB union, and November saw a resumption. Rhea Wolfson from GMB Union praised the results, stating that the success could not have been achieved without their relentless efforts.
Clare Campbell from Unison called the settlement “a good day for low-paid women” and stated that children’s services and local communities in the city could benefit from it. The proposed agreement needs approval by the council’s cabinet on December 17th.
The council started distributing equal pay claims payouts after 2012, following a significant case brought against the council. However, in 2023, the authority declared the bill for settlement reached £760m. Max Caller, the head commissioner, appointed by the government to oversee the financial recovery of the council, stated earlier this year that the bill to settle could be lower than that.
Councillor John Cotton, the leader of the city council, claims that this agreement marks the end of an intense period of dialogue with the unions. The agreement is an essential step in the council’s improvement journey, he added. Today’s agreement offers some relief for an effectively bankrupt local authority currently dealing with making £300m cuts over two years. Although the final cost is currently unknown, it is expected to be significantly lower than the projected £760m. However, the deal will not affect the level of cuts necessary in the city since they are mostly due to overspending in other areas
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