Bankrupt Birmingham City Council agrees enormous equal pay deal after £760m dispute | EUROtoday

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Birmingham City Council has reached an settlement to settle 1000’s of historic equal pay claims costing tens of millions, simply over a yr after successfully going bankrupt.

GMB Union, which introduced the claims alongside Unison, stated the settlement meant 4 years after launching its marketing campaign, 6,000 low-paid, predominantly feminine employees ought to lastly obtain settlement funds from the native authority.

Payouts are anticipated to be as much as 4 occasions greater than these supplied to employees in 2021, with settlements anticipated to happen in the midst of 2025, the union stated.

The Labour-run council declared itself successfully bankrupt in September final yr after it was going through a £760m invoice to settle the claims, however was earlier this yr stated to be on a “narrow path to financial sustainability” depending on finances cuts.

The dispute pertains to workers in female-dominated roles, similar to educating assistants, who’ve traditionally been underpaid in relation to these in male-dominated areas of the council, similar to waste assortment.

Rhea Wolfson, GMB’s head of commercial relations, described the settlement as a “historic outcome” for ladies employed by the council.

“This result would not have happened without their dedicated and tireless leadership of a campaign which has overcome huge odds,” she stated.

“They were told there wasn’t enough money, that they must accept that women workers are paid less.

“But they showed council bosses that the show doesn’t go on without them. Their bravery on the picket line, in the classrooms, care homes, offices and workplaces across Birmingham has been staggering.

“Pay discrimination is rife and GMB will not turn a blind eye when women workers are being shortchanged.”

In a press release issued on Tuesday, the native authority stated a framework settlement will likely be put earlier than its cupboard committee subsequent week to hunt formal approval for the plan.

The full phrases of the settlement reached with GMB and Unison are confidential, however the council stated the price of the settlement falls throughout the restrict of an Exceptional Financial Support package deal agreed with the earlier authorities in January.

Councillor John Cotton, chief of Birmingham City Council, stated: “This framework agreement marks the end of an intense period of dialogue between the council and its unions.

“It is an important step on the council’s improvement journey. I would like to put on record my thanks to GMB and Unison for the constructive way in which they have approached these negotiations.

“I was appointed as leader to end the failings within this council that led to the equal pay liability, and this framework agreement is intended to mark the start of a new era of productive and progressive industrial relations built on trust and mutual respect.”