City council and trade unions strike £36m deal to resolve equal pay issues

GMB first raised the issue with the council in September 2023.

The council said that in partnership with the unions, it had looked at every role in the organisation and in maintained schools and had identified cases where individuals might be eligible for equal pay redress.

Every role in the council was considered, regardless of whether a claim was submitted, it added.

The agreement will see more than 3,600 employees in the council in around 260 roles receive a redress payment.

The total offers to these employees are estimated to cost around £36m.

The payments to eligible employees will be funded by reserves, the council said.  

The local authority noted that by using reserves to fund the payments to council staff there won’t be additional council tax increases or savings for the council as a result of this work.

“The council’s Medium-Term Financial Strategy that was approved in July is robust and will be updated later in the year, as planned, following funding announcements from the Government,” it added.

Sheffield stressed that while it faced budgetary pressures "like many other local authorities", it is not in a position where it has to issue a Section 114 notice.  

The council added: “Maintained schools are being treated separately to the council. The council is working closely with them on this programme and the payments to eligible employees will not be paid from school budgets. The total offers to around 1,600 non-teaching staff in maintained schools is estimated to cost around £15m.

“Funding for schools is complex and the council is talking to central Government to make arrangements for next steps in the process. Non-maintained schools are run outside of the council and are not included in this programme.”

In addition, a review of the council’s job evaluation scheme and introduction of a new one is underway.

This process is expected to take approximately 18 months and every role in the council and support staff in maintained schools is being reassessed “to ensure every member of staff is graded appropriately”.  

Cllr Tom Hunt, Leader of Sheffield City Council, said: “This agreement reflects a shared commitment between the council and trade unions to do the right thing for those whose work has historically been underpaid. Rather than allowing this issue to become drawn out, all parties have chosen to work together to deliver a fair and timely resolution. This agreement is a recognition of the vital contribution made by our employees across the organisation and a commitment to ensuring that such disparities are never repeated. Thank you to our trade union partners and to council staff for their work to secure this agreement.”

In a joint statement trade unions GMB, Unison and Unite said: “While this settlement addresses the past, it also marks the beginning of a new chapter. The council has committed to rebuilding its pay and grading systems to ensure they are transparent, robust, and aligned with best practice. This includes strengthening job evaluation and embedding equity into the organisation’s culture and systems. The council and trade unions will work together to implement this new framework that reflects the true value of all roles.”

Kate Josephs, Chief Executive at Sheffield City Council, said: “This agreement is not only a resolution of a local issue, but also a demonstration of how complex, long-standing equal pay challenges can be addressed constructively, collaboratively, and at pace. The council and trade unions have worked together to reach a solution that is both fair and forward-looking. Our workforce plays a vital role in our city and their contribution to residents’ lives and our organisation cannot be understated. We are committed to ensuring they receive the pay they deserve.”

Desiree Johnston, GMB Senior Organiser, said: "Equal pay is not negotiable. This agreement proves that with determination and honest negotiation, we can deliver fairness quickly, without years of costly legal battles.

"Today is a victory for GMB members, for women workers, and for Sheffield — but our fight for equality goes on."