Unite, the UK’s leading union, has described the news that Birmingham council has settled its equal pay claims for a fraction of the amount it has claimed it was liable for as “exposing the ongoing mismanagement and incompetence at the heart of the council”.
 
This week the council announced that it has settled its equal pay claims, with local reports revealing the initial cost was in the region of  £250 million, which is far less than the estimated cost of between £650 million - £760 million, that leader John Cotton claimed to be the council’s liability in June 2023.
 

Equal pay miscalculation 

It was due to the expected equal pay liabilities that the council effectively declared its insolvency in September 2023 and it has since been engaged in £300 million of cuts, with workers and residents both paying the price.
 
However, the news that the equal pay liabilities were far lower, means there was no reason for the council to apply for a section 114 (insolvency) notice and no requirement for the government to appoint commissioners to oversee the council’s functions.
 
The council’s insolvency and its decision to slash the pay of its refuse workers by up to a quarter (£8,000) was a direct response to the council’s effective insolvency. The fact the liabilities were barely a third of what was predicted demonstrates that the 10-month long refuse dispute could have been avoided.
 

Disgraceful tale of council incompetence

Unite general secretary Sharon Graham said: “This is a disgraceful tale of the council's incompetence coupled with bad legal advice. The victims and those that have paid the price are the bin workers and local residents.
 
“The ongoing bin strike is a direct result of the council’s mismanagement of its finances. Unite has repeatedly provided the council with expert legal advice to demonstrate it was making the wrong calculations on equal pay, but the council was too arrogant to even consider it.
 
“The council’s legal advice yet again is not worth the paper it is written on. If the council had an ounce of moral integrity, it would immediately admit it was wrong and  honour the deal scoped out at Acas to resolve the bin dispute.
 
“Ultimately, Joanne Roney's, the council’s leadership, the government commissioners and the council’s legal team must be held to account for this mess.”
 

False equal pay claims

The council has continually claimed that the decision to cut the refuse workers’ pay was necessary for “equal pay reasons' and they could not afford to pay the compensation to workers”. Unite has repeatedly stated that this was not the case and it had KC advice to prove its case.
 
During pay negotiations earlier this year Birmingham council managing director Joane Roney insisted that the council’s equal pay figures were correct and refused to look at Unite’s legal advice showing  this could not be the case.

It was also the government’s commissioners, who it is now clear never needed to be appointed, who torpedoed the ballpark agreement agreed between Unite and Roney, in early summer, which would have resolved the dispute.
 
ENDS
 
Notes to editors:
 
For media enquiries ONLY please contact Unite senior communications advisor Barckley Sumner on 07802 329235.
 
Email: barckley.sumner@unitetheunion.org
 
Twitter: @unitetheunion Facebook: unitetheunion1 Instagram: unitetheunion Web: unitetheunion.org
 
Unite is the UK and Ireland’s leading union fighting to protect and advance jobs, pay and conditions for members working across all sectors of the economy. The general secretary is Sharon Graham