Birmingham Metropolis Council has reached a deal to settle historic equal pay claims which left it dealing with a £760m invoice and pushed it into efficient chapter.
The settlement, reached between the native authority and unions GMB and Unison, means round 6,000 largely feminine employees will obtain a payout.
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The total phrases of the settlement will probably be stored confidential and the council’s cupboard will probably be requested to formally approve it subsequent week, on 17 December.
Rhea Wolfson, GMB’s head of business relations, described the deal as a “historic outcome” for girls 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 mentioned.
Unison West Midlands head of native authorities Claire Campbell added: “This will hopefully be the much-needed turning point for staff, services and local communities across the city.”
The dispute pertains to council staff in female-dominated roles, comparable to cleaners and catering employees, traditionally being paid lower than these in male-dominated roles, like waste assortment.
The authority began paying out the claims after a landmark Supreme Court docket case in 2012, however mentioned final 12 months that the invoice had spiralled to about £760m.
This was one of many key components within the council, the most important in Europe, declaring itself successfully bankrupt in September 2023 with a Part 114 discover.
The discover confirmed that each one new spending, except for defending susceptible folks and statutory companies, should cease instantly, whereas £300m of cuts and tax rises have been later authorised as a way to safe distinctive monetary assist (EFS) loans from the earlier authorities.
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Protests towards cuts in Bimringham
In an announcement on Tuesday, the council mentioned the price of the settlement falls throughout the restrict of the EFS package deal agreed with the Tories in January.
Nevertheless it isn’t clear if the deal will scale back the extent of cuts wanted to shut the shortfall within the council’s funds, or the extent of property being offered off.
In addition to the equal pay claims, the council’s monetary issues have been additionally blamed on a bungled IT system implementation, large will increase in grownup social care demand and the impression of inflation.
Chief of Birmingham Metropolis Council John Cotton acknowledged the town is dealing with “unprecedented challenges”.
“This framework agreement marks the end of an intense period of dialogue between the council and its unions,” he mentioned.
“The next phase of the equal pay programme will be to deliver a new pay and grading model and job evaluation scheme so that pay inequality at the city council can end once and for all.”
