Millions to be paid to Sheffield council and school workers in equal pay compensation settlement
Over 3,600 Sheffield Council workers and 1,600 school staff are being told that they are eligible for compensation over unfair pay.
The council faces a bill of around £36m for payments owed to staff in around 260 job roles following the agreement announced today (September 23) with the GMB, Unison and Unite trade unions.
The cost of payments for non-teaching staff in maintained - state-run - schools is around £15m. Talks are ongoing with the government as to how that bill will be covered but the council said the cost will not come out of school budgets.
The decision follows an equal pay campaign launched by the GMB in September 2023. Around 75 per cent of affected council staff are women and the figure rises to 90 per cent for non-teaching staff in state schools.
None of the council staff are directors or from senior leadership teams.
The council said that every job role has been considered, regardless of whether an equal pay claim was submitted.
The money to cover the council's redress payments will come from funds held in its reserves. The council said that there is no danger that it will have to go into effective bankruptcy and the payouts will not lead to additional council tax increases or council savings.
Birmingham City Council had to issue a section 114 notice in 2023 to say it was unable to meet its financial obligations, mainly because of a £760m equal pay bill and the cost of computer system problems.
The council and trade unions have jointly scrutinised every work role in the organisation to discover which staff may be eligible for redress payments.
An ongoing evaluation of all job roles to ensure that they stand at the correct level in pay grades compared to other jobs will take an estimated further 18 months. That will result in new job descriptions for every role, including the school support staff.
Council leader Coun Tom Hunt said: “This agreement reflects a shared commitment between the council and trade unions to do the right thing for those whose work has historically been underpaid.
"Rather than allowing this issue to become drawn out, all parties have chosen to work together to deliver a fair and timely resolution. This agreement is a recognition of the vital contribution made by our employees across the organisation and a commitment to ensuring that such disparities are never repeated.
"Thank you to our trade union partners and to council staff for their work to secure this agreement.”
The three trade unions said in a joint statement: “While this settlement addresses the past, it also marks the beginning of a new chapter.
"The council has committed to rebuilding its pay and grading systems to ensure they are transparent, robust and aligned with best practice.
"This includes strengthening job evaluation and embedding equity into the organisation’s culture and systems. The council and trade unions will work together to implement this new framework that reflects the true value of all roles.”
Council chief executive Kate Josephs said: “This agreement is not only a resolution of a local issue, but also a demonstration of how complex, long-standing equal pay challenges can be addressed constructively, collaboratively, and at pace.
"The council and trade unions have worked together to reach a solution that is both fair and forward-looking.
"Our workforce plays a vital role in our city and their contribution to residents’ lives and our organisation cannot be understated. We are committed to ensuring they receive the pay they deserve.”
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