Birmingham City Council strikes deal with unions over £1bn equal pay crisis

Birmingham City Council has said it has reached an agreement with trade unions over the £1bn equal pay crisis.

Last month the local authority effectively declared itself bankrupt by issuing a section 114 notice as it faced a huge bill of up to £760m to settle equal pay claims.

The decision by a majority of the city’s councillors for a job evaluation scheme will begin a process that should deliver an equality-proofed pay and grading structure across the council.

Council leader John Cotton said he was delighted to have reached an agreement with unions over a job grading scheme.

“I am delighted that GMB, Unison and Unite have all signed the addendum which sets out how we will carry out the Job Evaluation Scheme at Birmingham City Council.

“This is a huge step forward as we seek to put our council back on a sound financial footing.”

He said without an agreement with unions any scheme “would surely collapse, leading to costly and disruptive industrial disputes”.

Michelle McCrossen, GMB organiser, said: “Today’s decision is an important first step to ending the sex discrimination faced by working women at Birmingham City Council.

“The agreement is clear that the council should not do anything that would undermine the mission of delivering an equality-proofed pay and grading structure, and we are committed to ending all ongoing discriminatory practises.

“The now agreed process delivers on GMB’s three red lines – worker voice, transparency and equality-proofed – and we will fight to ensure these principles are upheld throughout.

“Our campaign doesn’t end here. Hundreds of millions of pounds have been stolen from Birmingham’s women workers over years.
“With progress now made on ending the discrimination, it’s time to put that money where it should always have been – in the pockets of our hardworking members.”