Worst-paid staff take council offer

Mar 30 2007 By David Bell, Birmingham Mail

THE majority of Birmingham City Council's most underpaid staff have accepted settlements of up to £32,500 to compensate them for years of low wages.

Deals have been agreed after meetings with 1,200 regraded home care assistants whose fatter pay packets have been backdated three years.

The workers are entitled to six years' back pay, but would have had to fight their case at an industrial tribunal.

Payouts range from "several hundred pounds" to the highest figure of £32,500.

After taking advice from unions as well as independent mediators from conciliation service Acas , 80 per cent signed up for the city council's tax-free compensation offer and waived their claims for more.

Other staff are considering the employment tribunal route, with the help of "no win, no fee" solicitors who would keep up to 20 per cent of any award.

Andy Albon, council director of human resources, said 90 per cent of care assistants would eventually waive their rights to six years' back pay and take the cash deal.

"By and large they seemed pretty keen on taking our offer," he said.

"We will be rolling out the proposal to other groups with significant and apparent pay claims."

The council estimated the potential bill at £200 million, but the three-year package halves it.

Two-fifths of the council's 40,000 staff qualify for increased wage packets under equal pay legislation, but 4,000 face a cut of up to £9,000, to follow a three-year pay freeze.

Worst off are 1,000 binmen and highway depot manuals who will lose a bonus that can make up to 50 per cent of their wages.