Landmark equal pay claim win may lead to job cuts at Bury Council (From Prestwich and Whitefield Guide)

Landmark equal pay claim win may lead to job cuts at Bury Council

7:00am Wednesday 8th July 2009

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WORKERS at Bury Council could face “wholesale” job cuts to meet the cost of reimbursing 1,200 female staff who have won a landmark equal pay claim case.

The grim warning has come from chief executive Mark Sanders days after Manchester employment tribunal’s ruling virtually paved the way for the women to receive thousands of pounds each.

“The Government needs to consider if it would allow us borrowing approval. If we don’t get that borrowing, potentially we’re bankrupt.

Council chief executive Mark Sanders

Their union, Unison, fought and won the equal pay claim against Bury Council during a four-week hearing.

The council’s claim that the men were paid more because of a genuine material factor, rather than because of the workers’ sex, was rejected.

And the Manchester tribunal has ruled that the women - who include cleaners, support workers and cooks - will now earn bonus payments of between 33.33 per cent and 50 per cent in line with male colleagues such as refuse collectors, labourers and gardeners.

But with the spectre of the local authority facing a huge cash bill running into millions of pounds, bosses have warned that jobs will have to be axed as a consequence of settling the claims.

Mr Sanders told the Bury Times: “The Government needs to consider if it would allow us borrowing approval. If that is the case, we will need to have room in the budget to pay back that borrowing.

“If we don’t get that borrowing, potentially we’re bankrupt. If we do get it, we’ll have to pay it back and have to create room to pay it back. With no room in our budget, there will have to be wholesale cuts to jobs. It’s an appalling scenario.”

In the meantime, however, council chiefs say they are “disappointed” with the result of the tribunal because they believed they were taking the “correct action” in defending the claims. Now, together with legal counsel, Bury Council will study the verdict in detail and examine its options, including whether to lodge an appeal.

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