2,000 female council workers set for payout

Jul 1 2009 by David Black, The Journal

MORE than 2,000 female council workers in Northumberland are set for payouts after agreement was finally reached to settle a long-running, £50m equal pay claim.

Women county council employees such as cleaners, kitchen assistants and carers are in line for the compensation payments as a result of being underpaid for years in comparison to male colleagues who earned bonuses.

Northumberland County Council is the last local authority in the North East to settle its equal pay dispute with the GMB and Unison – and defended its case as far as an Employment Tribunal scheduled for earlier this month.

Now it has emerged there is an agreement in principle between the council and the unions to settle claims by female employees which were lodged several years ago. Details are being kept confidential but The Journal understands the deal could leave the unitary council facing a financial liability of about £35m.

It is another financial challenge for the new authority, which is already facing budget and efficiency savings of £55m over two years.

The previous Labour administration at County Hall backed senior officers’ advice the equal pay claim should be resisted and challenged in court, on the grounds the council had a strong defence. But the new Liberal Democrat administration – which took over in May last year – has been keen to settle the matter. The council will seek to fund the massive payout through capitalisation, which involves the Government allowing it to borrow more money.