Councils could face inequality bill
15 Aug 05
Failure to implement equal pay agreements could lead to tens of thousands claiming compensation
Councils in Scotland could face a £500m bill to settle backdated equal pay claims.
These claims could come from women workers in the public sector following on from similar claims against English local authorities.
In 1999, most councils in the north east of England signed equal pay agreements, but these have not been implemented. These councils have now offered compensation to all women employees who had been affected. Last month, Newcastle City Council reached a settlement with trade unions which will see 2,800 employees, such as cleaners and care-at-home staff, compensated.
The Action 4 Equality organisation, which is linked to a firm of solicitors, is now heading for Scotland. It has estimated that 50,000 female workers could claim compensation from councils and that if they got the same settlements that have been paid out in England, the bill could be more than £700m.
CoSLA has admitted that there is a problem, but said talks with unions were the best way to solve this. President Pat Watters added that the people who would get rich from the claims would be the lawyers and not the workers, and that it could be council tax payers who would be left to foot the bill if the government did not step in.