Equal pay claim set to hit taxpayers hard

Feb 13 2007 By David Bell, Birmingham Mail

A £200 million windfall for thousands of underpaid women employees could turn into hammer blow for city council taxpayers, it was revealed today.

More than 8,000 female dinner ladies, cleaners, and social workers are entitled to six years back wages under fair pay legislation coming into effect in April.

But, even borrowing the money on a long term loan will involve hefty repayments which will add a 5.4 per cent increase to Birmingham's council taxes.

To avoid that, city leaders have decided to limit their back pay offer to only three years and a £100 million payout with interest charges which will increase local taxes by 2.7 per cent.

Aggrieved employees wanting more are being told to take their case to an employment tribunal - a process which could take two years or more.

There will also be big losers from the fair pay shake-up which brackets care home staff on the same grade as the city's white line painters, some of whom earn £53,000-a-year.

A city scrutiny team have been sold some employees will lose 25 per cent of their wages.

Although individuals won't know their new wages until the end of June, some departments have already been briefed.

Of the 400-plus in the chief executive's department, 200 have been warned they will lose between £5,000 and £10,000 a year.

"It's worse than being on the Titanic," said Coun James Hutchings, who has been monitoring the process. "Instead of steaming towards an iceberg we are surrounded by them.

"The aim of this exercise is for people to be rewarded fairly for what they do.

"In some areas there will be considerable dissatisfaction and a significant risk of loss of morale and motivation. We are also aware of the possibility of industrial action."

Coun Deirdre Alden warned that many officials expecting a pay cut were already looking for other jobs.

"The kind of loss people are expecting is not sustainable for those with mortgages and families," she said. "It is not surprising people are looking for other jobs. I don't blame them. Morale is terrible."