Ruling paves way for claims on equal pay
Jul 30 2008 by Adrian Pearson, The Journal
A LEGAL battle to secure equal pay for men and women could cost local authorities and NHS bosses millions of pounds. Fresh equal pay claims could be submitted across England after a ruling following action by women working for Redcar and Cleveland and Middlesbrough councils.
They have demanded compensation for being treated less favourably than male workers doing the same or similar jobs. Yesterday Lord Justice Mummery ruled on what he described as one the most complex cases dealt with during his time at the Court of Appeal.
The judge said that so-called “soft landing” payments set up to ensure male workers did not see sudden wage cuts as a result of equal pay changes were a breach of the law.
In the 1990s, many councils and public bodies decided that male workers facing a drop in pay should be given an extra layer of pay protection to top up their earnings for the next several years. While the court ruled these payments were a breach of equal pay laws, they did not allow claims to be backdated. Lord Justice Mummery said: “We accept that a large public employer might be able to demonstrate that the constraints on its finances were so pressing that it could not do other than it did and that it was justified in putting the need to cushion the men’s pay reduction ahead of the need to bring the women up to parity with the men. But we do not accept that that result should be a foregone conclusion.”
Paul Kenny, general secretary of the GMB union, said the union would be considering the “complicated” judgment.
He said: “This reinforces GMB’s call for clarity from the House of Lords and Parliament to ensure justice on equal pay for women within an orderly framework of collective bargaining covering millions of employees in the public and private sectors.”
Redcar and Cleveland Council leader George Dunning said: “We are pleased that two of the four important issues being considered have been decided in our favour but, obviously, we are disappointed with the judgment on the remaining points of appeal. The fact that the judgment runs to 150 pages demonstrates both the importance and complexity of the matters being decided and we will now be taking some time to consider our position.”
Speaking after the ruling, equal pay specialist, Cloisters’ barrister Rachel Crasnow, said: “The court’s ruling, that discriminatory pay protection is unlawful, could pave the way for thousands of new equal pay claims against local authorities and the NHS. This would be in addition to the thousands of equal pay claims which are already in the system.”
