Coventry City Council urged to reassure taxpayers over pay claims

The GMB union is supporting about 180 equal pay claims against Coventry City Council

A senior Tory councillor has urged Coventry City Council to reassure taxpayers it has a plan to pay for potentially "massive" equal pay claims estimated to be worth millions.

A tribunal is set to be held later this month after 180 claims were brought against the local authority.

The mostly female staff say refuse workers, a male-dominated profession, enjoy benefits they do not.

The Labour-run council said it intended to defend the claims.

However, it said the potential value of those would "become clearer" during the tribunal.

An estimated £760m equal pay bill was a major factor in the much larger Birmingham City Council effectively declaring itself bankrupt.

Last year, councillors in Coventry were briefed that if the local authority lost the case, the potential compensation bill could reach £50m, the BBC has been told.

But council sources are now dismissing these figures as speculation.

Conservative group leader Gary Ridley said taxpayers will "be very worried about the equal pay situation"

Gary Ridley, leader of the Conservative opposition group, said: "It does feel like the council has backtracked on an initial estimate of £30 to £50m. That was the figure that was in the public domain last year.

"The council now appear unwilling to put any number on that. To an extent, I can understand it because you don't necessarily want to give people something to bid to.

"But at the same time we have to be very clear that, if this goes against the council, we could end up in a situation where the taxpayer is picking up a large bill."

He accused the council of a "heads-in-the-sand strategy and hope for the best", adding that if it lost the tribunal ruling it could ultimately mean cuts to council services.

Asked if the claims could pose a risk to the council's financial stability, Richard Brown, cabinet member for finance, said they "could well be a challenge that we face in the future".

"But we will cross that bridge as and when we see it," he said.

In a freedom of information (FOI) response, the council said it had "not completed an analysis" of a potential compensation figure, or set any funds aside.

Richard Brown said the council could face a "challenge" if it needed to settle pay claims

The GMB trade union said its lawyers were currently working to put a figure on the claims.

Union organiser Alice Reynolds urged the council to engage in "meaningful negotiations" and suggested the potential payout could be "insurmountable".

The equal pay claims are linked to benefits received by the waste collection team, including a practice known as task and finish.

The condition means they are able to finish their shifts as soon as their work is completed.

Staff in other areas of the council's workforce claim this amounts to sexual discrimination because they are not entitled to these terms.

The local authority is seeking to change the terms and conditions of the refuse workers' contracts in a bid to draw a line under claims.

Under the Equality Act 2010, it is unlawful for employers to discriminate between men and women in their pay and conditions if they are doing equal work.

GMB organiser Alice Reynolds said the potential payout "could be insurmountable at this point"

The potential cost of equal pay claims is not expected to feature in the council's medium-term financial strategy next month.

Stefan Cross KC, a leading equal pay lawyer, said in his experience councils "deny liability for as long as possible and always underestimate the value of the claims because they always think they're going to win".

"They also essentially don't want to hamstring themselves by agreeing that they have a very large potential liability because if that's the case then they have to include that in their accounts."

He said Coventry City Council was "playing a bit of a poker game" by briefing out "relatively small numbers".

"But if it goes wrong and it turns out to be a huge number, then they haven't made sufficient provision. So it's a very risky strategy on behalf of the council."