Birmingham City Council has been accused of stalling after it emerged that thousands of former and current staff could be waiting until November 2015 for equal pay settlements.
Last year the council halted an employment tribunal and agreed to settle some 11,000 claims from staff who had been underpaid.
But now lawyers acting for the staff have accused the council of making low offers and delaying payment.
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Thousands of mainly female workers, such as carers, cleaners and cooks, have come forward with claims in recent years after courts ruled they had been discriminated against compared to male worker in roles like road worker, street sweepers and bin men, who had picked up extra pay through routine overtime and other bonuses.
Many claimants, including some who had retired or left the council, have claimed six years’ back-pay and received sums ranging from a few thousand pounds up to £100,000.
According to the last set of accounts the council’s bill for equal pay stood at £1.1 billion – with a mix of government loans and sale of assets like the NEC Group, due to go through at the end of this year, needed to cover the costs.
Lawyers acting for the workers say that with the Employment Tribunal on hold, “paltry” offers being made and people being told money will not be paid until November next year, a three -year backlog has built up leading to huge delays. The council is still settling claims lodged in 2011 it is claimed.
Director of Equal Pay Legal Darren Smith said: “We are continuing to receive over 200 calls per month from workers with equal pay claims against Birmingham City Council.
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“However there is a freeze in the Employment Tribunal on the progress of those claims whilst the council tries to settle them. The difficulty with that is there is a huge backlog, which is increasing month by month, and workers are being held out of the compensation to which they are entitled for possibly several years. That is just not right – the council has ignored its legal responsibility to pay workers fairly and it needs to rectify that as soon as possible to remedy that injustice. The council needs to commit proper resources to dealing with these claims in a much fairer and swifter manner.”
Although the city council claims its pay structure was complied with the equality act by 2010, there has been a surge in claims due to the Abdullah Court ruling in 2012 which opened the door for more of those who had already left the authority.
The council has been awarded a £530 million loan from government to pay the bill but has been told to find the rest. Proceeds from the sale of the NEC Group will help cover the costs.
The council refused to comment while the equal pay cases are ongoing.