Birmingham on verge of settling equal pay claims

Birmingham City Council has reached a framework agreement with UNISON and GMB to settle historic equal pay claims made by members working for the local authority and Birmingham Children's Trust.

The council's cabinet is set to consider formal approval of the agreement at an extraordinary meeting on Tuesday (17 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 against the authority by 174 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 equal pay claims.

Months later, in September 2023, the council issued a section 114 notice, partly blaming its equal pay liabilities.

While the full terms of the settlement remain confidential, the council confirmed that the cost falls within the limits of the exceptional financial support package agreed with the previous government in January 2024.

Cllr John Cotton, Leader of Birmingham City Council, said: "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."

He added: "The council is facing unprecedented challenges. It will only get through this period by working collaboratively with its staff and their union representatives to focus upon delivering the best possible outcome for communities across the city."

Cllr Cotton noted that the next phase of the council's equal pay programme would aim 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".

Alice Reynolds, GMB Organiser, meanwhile said: "The women of Birmingham City Council have delivered an historic outcome today."

"This agreement would not have happened without the determination shown by low-paid women workers.

"Now this Framework Agreement sets out a cast iron plan to settle our members' claims and pay back their wages after years of discrimination."

UNISON West Midlands head of organising Claire Campbell added: "This is a good day for low-paid women who work at the council. They will at last get the pay justice they deserve."

"Birmingham City Council has longstanding industrial relations issues. But this agreement will show what can be achieved when the council negotiates constructively and in good faith."

Adam Carey