Birmingham City Council settled 6,000 equal-pay claims by past and current staff, four years after the initial filing.
In mid-2025, the local authority will be expected to make payments to low-paid employees who are predominantly women.
After the council bosses entered into talks again with GMB Union, and Unison to establish a framework agreement for settlement of claims, they reached a deal.
GMB says that while the details of the deal are confidential, it has delivered a “historic result”. The payouts could be four times more than what the workers received in 2021.
Rhea Wolson, head of industrial relations for the union, said that this result wouldn’t have been possible without their tireless and dedicated leadership in a campaign, which overcame huge odds. The union was told that there wasn’t money and that they had to accept the fact that women workers were paid less. “But they made it clear to the council bosses that things wouldn’t be as good without them.
Long-standing dispute involves claims that women in positions dominated by females, like teaching assistants, are paid less than men in similar roles.
Councillor John Cotton said, “This agreement is the culmination of a long period of intense dialogue between Birmingham City Council and its unions.” This is a significant step in the council’s journey to improve.
He believes that the agreement is meant to “mark the beginning of a new age of productive and progressing industrial relations based on mutual trust and respect”.
Cotton said: “The next stage of the equal-pay programme will be delivering a new salary and grading system and job evaluation scheme to end pay inequality in the city council once and for all.”
Birmingham City Council has been paying out nearly PS1.1bn since a historic equal pay case was filed against it in 2012. It estimated that the bill would reach PS760m by 2023.
Claire Campbell, Unison West Midlands’ head of organizing, also commented on the deal. She said it was good news to the council’s female low-paid workers who “finally get the pay they deserve”.
She said, “Birmingham City Council’s industrial relations issues have been long-standing. But this agreement will demonstrate what can be accomplished when the council negotiates in good faith and with constructiveness.” This agreement will hopefully mark a turning point in the lives of staff, local communities and services across Birmingham.
On 17 December, the cabinet of the council will approve this agreement.
