Thousands of women are set to receive settlements for their equal pay claims following a long-running dispute with Birmingham City Council. The agreement, which involves the GMB and Unison unions, will see 6,000 council staff receive payouts for historical pay disparities.
The issue, which dates back several years, became a significant factor in the council’s financial troubles, leading to its effective bankruptcy last year. The council had warned it faced a £760m bill to settle the claims, prompting fears of further cuts to local services.
Teaching assistant Pamela Whatley, who has fought for four years to get justice, expressed her relief, saying she felt “over the moon” and had “a bit more peace of mind” after years of campaigning. The details of the settlement are confidential, and the council’s cabinet is set to formally approve the agreement on December 17.
The dispute centers around the underpayment of women working in traditionally female-dominated roles, such as teaching assistants and cleaners, compared to their male counterparts in roles like refuse collection and street cleaning. The GMB union described the settlement as “a significant step towards pay justice” and hailed the women as making “history” with their fight.
Clare Campbell from Unison also praised the settlement, calling it a “good day for low-paid women” and a “turning point” for staff, services, and communities. Many of the claimants, including Ms. Whatley, had been forced to work multiple jobs and endure financial hardship while fighting for equal pay.
Birmingham City Council has already paid out nearly £1.1bn in equal pay claims since a landmark 2012 ruling. Despite the mounting costs, the final settlement figure is expected to be lower than the initial £760m estimate. This brings some relief to council leaders, who are still dealing with severe financial pressures, including plans for £300m in cuts over two years.
However, while the settlement provides some resolution for the claimants, the financial challenges facing the council remain, with future cuts still likely to affect services and local communities. The focus will now turn to how the settlement impacts the council’s wider financial recovery.