The dispute relates to council workers in female-dominated roles, such as cleaners and catering staff, historically being paid less than those in male-dominated roles, like waste collection - leaving the council with £760m of liabilities.
Birmingham City Council has reached a deal to settle historical equal pay claims which left it facing a £760m bill and pushed it into effective bankruptcy. The agreement, reached between the local authority and unions GMB and Unison, means around 6,000 mostly female staff will receive a payout.
This was one of the key factors in the council, the largest in Europe, declaring itself effectively bankrupt in September 2023 with a Section 114 notice. The notice confirmed that all new spending, with the exception of protecting vulnerable people and statutory services, must stop immediately, while £300m of cuts and tax rises were later approved in order to secure exceptional financial support loans from the previous government.
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