Birmingham City Council settles historic equal pay claim after bankruptcy

Birmingham City Council has reached an agreement to settle thousands of equal pay claims that have pushed the local authority to the brink of bankruptcy.

The announcement comes just a day after ITV News' Deputy Political Editor Anushka Asthana reports Birmingham Council is poised to pay out hundreds of millions of pounds to women workers including teaching assistants and cleaners.

In a statement issued on Tuesday, the local authority said a paper related to the “framework agreement” will be put before its cabinet committee next week to seek formal approval for the plan.

The full terms of the settlement reached with GMB and Unison are confidential, but the council said the cost of the settlement falls within the limit of an Exceptional Financial Support package agreed with the previous government in January.

GMB Union said the agreement meant that, four years after launching their campaign, 6,000 low-paid, predominantly women workers look set to finally receive settlement payments from the local authority.

Settlement payouts are expected to be up to four times higher than the payment offered to workers in 2021, with settlement expected to take place in the middle of 2025, the union said.

Councillor 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."

"I was appointed as Leader to end the failings within this council that led to the equal pay liability and this framework agreement is intended to mark the start of a new era of productive and progressive industrial relations built on trust and mutual respect.

"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.

"The next phase of the equal pay programme will be 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.”

Rhea Wolfson, GMB’s head of industrials relations, described the agreement as a “historic outcome” for women employed by the council.

“This result would not have happened without their dedicated and tireless leadership of a campaign which has overcome huge odds,” she said.

Alice Reynolds, GMB Organiser, 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.

“In schools, offices and workplaces across our City, GMB members have led the fight for equal pay.

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

"Pay justice for Birmingham’s women workers is something that our union has long led the fight for; today this Framework Agreement brings that within touching distance”.

UNISON West Midlands head of organising Claire Campbell said: “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 long standing industrial relations issues. But this agreement will show what can be achieved when the council negotiates constructively and in good faith.

"This will hopefully be the much-needed turning point for staff, services and local communities across the city.”

Subscribe free to our weekly newsletter for exclusive and original coverage from ITV News. Direct to your inbox every Friday morning.

Have you heard The Trapped? Listen as Daniel Hewitt exposes the UK's dirty secret.