Birmingham settles historic equal pay claims

The news comes almost a year on from the agreement in principle being penned last December.

Birmingham's equal pay dispute dates back as far as 2012, when the Supreme Court refused an application from the local authority to strike out equal pay claims brought by former employees.

In June 2023, the council reported that a "refreshed"  look at its finances revealed it still had to pay between £650m and £760m to settle the claims, a discovery which contributed to the council issuing a section 114 notice three months later.

Since then, Birmingham has been under Government intervention and is currently being overseen by a team of commissioners, led by Tony McArdle.

The full terms of the settlement are confidential, but as part of the agreement, the council has issued a statement acknowledging the "shortcomings in how equal pay risks were handled in the past".

"We recognise that previous custodians of the council did not act swiftly or decisively enough to resolve these matters. As the current leadership, we are committed to learning from these mistakes and ensuring they are not repeated," the statement says.

It also notes that the council is working constructively with trade unions, adding: "Their persistence and partnership have helped bring about a framework agreement that will allow us to settle outstanding equal pay claims to avoid the time and expense of litigation, and without admission of liability by the council, and move forward with a fairer, more transparent job evaluation scheme and pay structure."

The council has also committed to regularly reviewing its job evaluation processes to maintain equity and transparency across all roles, and to continue to strengthen its internal governance structures.

Megan Fisher of GMB Union said: "Public bodies cannot run from the mistakes of the past; they must confront and fix them.

"GMB welcomes today's historic step, as well as the constructive approach to negotiations from Councillor John Cotton and others in recent months.

"We will now be focused on getting money back where it belongs, into the pockets of our members as a matter of urgency."

Claire Campbell, UNISON regional manager, added: "This agreement marks a turning point for hundreds of low-paid women who have waited far too long for justice and equal pay.

"It's a testament to their strength, resilience and to the power of collective action. UNISON is now focused on ensuring these payments reach staff as quickly as possible."

Tony McArdle, meanwhile, said: "The failure to resolve Equal Pay over many years has cost the council dearly. This agreement presents a real opportunity for the council to limit further costs and to positively reset its relationship with its staff and trade unions.

"It's an encouraging step forward and one as commissioners we are pleased to see the council make."

Adam Carey