City's equal pay dispute with female staff settled

The final settlement of the equal pay claim comes 13 years after a landmark court ruling in 2012

A council's equal pay dispute with its female staff has come to an end after a settlement was reached.

It follows an agreement in principle being reached last December and union Unison described it as an "equal pay victory for women at Birmingham City Council".

The case was brought by Unison and fellow union GMB, on behalf of members working for the local authority and Birmingham Children's Trust, with the GMB saying the landmark deal had been "hard won", 13 years after a landmark court ruling.

John Cotton, leader of the city council, said the agreement was a "key milestone" and he thanked the unions "for working so constructively with the council to put right a historic wrong".

The two unions had brought claims on behalf of low-paid workers, arguing women working as teaching assistants, catering staff and care workers were not able to earn the same as male counterparts in other roles across the workforce.

In 2023, the authority revealed it had to pay up to £760m to settle outstanding equal pay claims, relating to the previous under-payment of its female workers.

It said that the pay dispute was a factor when it had to declare itself effectively bankrupt later that year.

Unison regional manager Claire Campbell said the agreement marked "a turning point for hundreds of low-paid women, who have waited far too long for justice"

"When I was appointed as leader two years ago, I labelled equal pay the single biggest challenge that the council has faced and vowed to deal with the matter once and for all," Cotton added.

The full terms of the latest settlement are confidential, the council said, but the agreement would "avoid the time and expense of litigation, and without admission of liability by the council".

Timeline: Women's equal pay dispute

• October 2012 - Birmingham City Council loses equal pay appeal bid

• November 2021 - City Council could face fresh wave of equal pay claims

• August 2022 - Council workers balloted over equal pay delay claims

• June 2023 - City Council facing £760m equal pay bill

• December 2024 - City Council agrees huge equal pay deal

Megan Fisher, of the GMB, : "After years of discrimination and being paid less than they were worth, [the female staff] stood up and demanded what was theirs."

She thanked the council for its "constructive approach to negotiations" and said the agreement reached was a "historic step".

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

She said the council had shown "its dedication and commitment towards equal pay and future change".

Council leader John Cotton said settling the equal pay dispute had been a priority for him, after he was elected in 2023

The agreement comes after the council was warned in July by the GMB of potential further strike action by up to 3,000 school workers, who had felt "short-changed" and said the processing of claims was "too slow".

The lead commissioner, appointed by the government to oversee the council as it attempts to fix its finances, said the pay dispute had "cost the council dearly".

Tony McArdle said: "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."

The city council said it acknowledged there had been equal pay "shortcomings" in the past and that they had not been tackled quickly enough.

It said it was now committed to "learning from these mistakes and ensuring they are not repeated".