GMB Union has accused Birmingham City Council of ‘stealing wages’ from female workers resulting in a huge equal pay bill which has put the council on the brink of bankruptcy.
The union, Birmingham City Council’s largest staff representative, has today called the council’s issuing of a Section 114 notice – which declares a local authority to be in financial distress – a ‘huge admission of failure’.
In June, Birmingham City Council chief executive, Deborah Cadman, broke the news that the council owed between £650 million and £760 million to its workers to settle its equal pay liability, with the figure growing by between £5 million and £14 million every month.
The latest estimate places the council’s liability at over £1 billion and GMB are the union with live equal pay claims against the council.
GMB Union also say the announcement comes just days before council representatives are expected to appear at an employment tribunal to defend their job evaluation scheme against the thousands of equal pay claims submitted by union members employed by the council.
Michelle McCrossen, GMB Organiser, said: “Today’s announcement is a humiliating admission of failure on the part of Birmingham City Council’s officials and leadership.
“Not only are they responsible for creating this crisis through years of discriminating against their own staff, but even they no longer believe themselves capable of fixing it.
“For decades the Council has stolen wages from its low-paid women workers, running up a huge equal pay liability that has brought Birmingham to the brink.
“Due to the reckless incompetence of council bosses, thousands of city employees will be worrying for the future of their jobs and of the essential services that they provide for the people of Birmingham.
“GMB will continue to fight for pay justice for our members, and to ensure those responsible for this crisis are held to account.”
