St Helens Council could face staggering £70million equal pay bill (From St Helens Star)
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St Helens Council could face staggering £70million equal pay bill
11:00am Thursday 15th November 2012 in News
St Helens Council could face staggering £70million equal pay bill
ST HELENS Council could be forced to settle a £70 million equal pay compensation bill after an employment judge ruled in favour of unions representing more than 1,000 workers.
Many of the claimants are in line to receive considerable compensation following a reserved judgement delivered after a pre-hearing review in Liverpool.
They include local authority employees ranging from cooks and cleaners to clerical staff, classroom assistants, caretakers and technicians.
According to a senior council source the cash-strapped local authority – which is already dealing with £50m budget cuts – will mount an appeal in an effort to overturn the judgement.
However, if it is unsuccessful it may have to apply to central government for loans or sell off land or property assets to raise revenue.
Steve Fay, from the St Helens branch of Unison, said: “This is a great result for our members. The council failed to establish a defence against (accusations of) discriminatory action.
“There is also a long way to go to determine what may actually be paid to each individual (and) we understand that the council may exercise a right of appeal.”
A written judgment seen by the Star, states Unison and GMB brought the equal pay claim after Town Hall managers “protected” higher earnings of employees, such as bin men and street cleaners, between 2000 and 2008.
Workers in other roles, in jobs that were classed as being of equivalent value, were on the same salary grades but were getting paid less money.
The ‘payment protection’ effectively kept in place a bonus or additional payment that workers, such as bin men, had been receiving historically.
Documents from the tribunal stated that in 2004, the council decided to protect the earnings of the bin men rather than reduce them to the rate at which they had been assessed during a wide ranging review of pay grades.
According to the ruling, it was intended that, in the course of the “pay protection period” the bin men would not receive cost of living allowance, to erode the pay difference.
However, this did not happen and the basic pay increased in line with cost of living increases, though the “consolidated bonus” did not rise.
The council conceded that pay arrangements in place were tainted by gender but argued there was justification for its decision.
The council claimed that levelling up (increasing the claimants’ wages) would have cost £70m, arguing an “unaffordable” move would have left it unable to deliver satisfactory services.
There, were other routes available, however, one of which included finding a middle ground of earnings by increasing the wages of the lower earners and dropping pay of higher earners.
An employment judge ruled that the council, which had known about the discriminatory pay in 2000, could not justify the entire overpayment for such a lengthy period.
The judge concluded the council had not “adopted proportionate means of achieving their legitimate aim”.
Asked about the judgment and the potential liabilities it faces, St Helens Council issued a statement which read: "The council is considering its legal position in response to the judgement - and it would be inappropriate to comment in any detail at this stage.
“However we can confirm that the council received an adverse judgement in a pre-hearing review. This process however, does not award financial settlements.”
Comments(30)
pitbullboxing
says...
12:53pm Thu 15 Nov 12
annie1275
says...
3:02pm Thu 15 Nov 12
And then no doubt the HMRC will want some of it off those claiming tax credits.
moonman77
says...
3:56pm Thu 15 Nov 12
anthonywilson
says...
4:37pm Thu 15 Nov 12
Its not the first time St Helens Council has made a blunder with regards to paying people. A few years ago they didn't realise that amendments to holiday pay regulations had changed meaning that part time workers were now entitled to holiday pay. This was ignored for about two years and it ended up costing them thousands when it was challenged by staff.
saintsfan
says...
7:45pm Thu 15 Nov 12
dk8 st hel
says...
7:52pm Thu 15 Nov 12
anthonywilson
says...
8:06pm Thu 15 Nov 12
saintsfan wrote:I agree with you on both counts about the Council and the compensation culture. However, it isn't really about compensation in the normal sense you simply can't pay people different rates in different jobs when they are supposed to be on the same national pay scale. Why some staff have had a bonus scheme in operation when its not really within the spirit/ethos of public service either amazes me.
On the one hand I think St Helens Council has behaved disgracefully and should cough up the cash that it clearly owes a lot of people as a result of its protectionist policy. On the other hand, I'm sick to death of the compensation culture and it only ever results in innocent people getting hurt while those who have been granted compensation can enjoy their extra cash. The rest of St Helens will suffer as the council will bleat even louder about cuts (that all councils have to make, the incompetent ones more than those that have managed their budgets well).
There is at the moment encouragement on local Councils to freeze Council Tax
https://www.gov.uk/g
overnment/news/third
-year-of-council-tax
-freeze-announced.
St Helens has already opted out of this and I can't see them wanting to or being in a position to accept any government offer of a subsidy to freeze council tax or limit its increase if if the court decision on the equal claim pay remains as it is. Remember this when any increases are all the fault of the cuts.
chasmcn
says...
9:37pm Thu 15 Nov 12
The national average of money cut to local authority's is £60.90
St Helens cuts are £183.00 per head
Wigan £108.00
Warrington £49.00
Knowsley £251.00
Liverpool £252.00
Cheshire East 19.00
can you spot which one is a labour marginal seat and which one is a tory seat ?
source
http://www.guardian.
co.uk/news/datablog/
interactive/2012/nov
/14/local-authority-
cuts-map
chasmcn
says...
9:53pm Thu 15 Nov 12
anthonywilson
says...
9:55pm Thu 15 Nov 12
chasmcn wrote:An excellent observation.
Seeing as we are suppose to be in this all together you would think that the cuts would be fairly across the country which isn't the case
The national average of money cut to local authority's is £60.90
St Helens cuts are £183.00 per head
Wigan £108.00
Warrington £49.00
Knowsley £251.00
Liverpool £252.00
Cheshire East 19.00
can you spot which one is a labour marginal seat and which one is a tory seat ?
source
http://www.guardian.
co.uk/news/datablog/
interactive/2012/nov
/14/local-authority-
cuts-map
Not only is one a Labour marginal and another a Conservative Authority it also covers George Osborne's consituency of Tatton.
The cuts being implemented are extremely unfair in terms of the how the cash is being reduced between different Local Authority areas but this doesn't change the fact it looks as though St Helens Council has made a shambolic mess of an equal pay issue which is potentially £20 million greater than the cuts being subjected on St Helens. Will any of those responsible resign?
chasmcn
says...
10:18pm Thu 15 Nov 12
anthonywilson wrote:agreed heads should roll but this isnt just a local issue its happening across the country affecting mainly women disgusting that its drag on so long .
chasmcn wrote:An excellent observation.
Seeing as we are suppose to be in this all together you would think that the cuts would be fairly across the country which isn't the case
The national average of money cut to local authority's is £60.90
St Helens cuts are £183.00 per head
Wigan £108.00
Warrington £49.00
Knowsley £251.00
Liverpool £252.00
Cheshire East 19.00
can you spot which one is a labour marginal seat and which one is a tory seat ?
source
http://www.guardian.
co.uk/news/datablog/
interactive/2012/nov
/14/local-authority-
cuts-map
Not only is one a Labour marginal and another a Conservative Authority it also covers George Osborne's consituency of Tatton.
The cuts being implemented are extremely unfair in terms of the how the cash is being reduced between different Local Authority areas but this doesn't change the fact it looks as though St Helens Council has made a shambolic mess of an equal pay issue which is potentially £20 million greater than the cuts being subjected on St Helens. Will any of those responsible resign?
anthonywilson
says...
10:51pm Thu 15 Nov 12
chasmcn wrote:Yes, Bimingham Council and other councils have and are facing similar claims. Not all Councils are though!
anthonywilson wrote:agreed heads should roll but this isnt just a local issue its happening across the country affecting mainly women disgusting that its drag on so long .
chasmcn wrote:An excellent observation.
Seeing as we are suppose to be in this all together you would think that the cuts would be fairly across the country which isn't the case
The national average of money cut to local authority's is £60.90
St Helens cuts are £183.00 per head
Wigan £108.00
Warrington £49.00
Knowsley £251.00
Liverpool £252.00
Cheshire East 19.00
can you spot which one is a labour marginal seat and which one is a tory seat ?
source
http://www.guardian.
co.uk/news/datablog/
interactive/2012/nov
/14/local-authority-
cuts-map
Not only is one a Labour marginal and another a Conservative Authority it also covers George Osborne's consituency of Tatton.
The cuts being implemented are extremely unfair in terms of the how the cash is being reduced between different Local Authority areas but this doesn't change the fact it looks as though St Helens Council has made a shambolic mess of an equal pay issue which is potentially £20 million greater than the cuts being subjected on St Helens. Will any of those responsible resign?
As you have mentioned it should not have been alowed to drag on for so long and considering it appears that the Council knew what the score was twelve years ago.
Sankey
says...
11:50am Fri 16 Nov 12
Sankey
says...
11:50am Fri 16 Nov 12
mikeperry109
says...
1:54pm Fri 16 Nov 12
anthonywilson wrote:Another possible take is that the Labour councils were being generously funded during the New Labour 13 years as a reward for voting Labour, and the balance is now being redressed!
chasmcn wrote:An excellent observation.
Seeing as we are suppose to be in this all together you would think that the cuts would be fairly across the country which isn't the case
The national average of money cut to local authority's is £60.90
St Helens cuts are £183.00 per head
Wigan £108.00
Warrington £49.00
Knowsley £251.00
Liverpool £252.00
Cheshire East 19.00
can you spot which one is a labour marginal seat and which one is a tory seat ?
source
http://www.guardian.
co.uk/news/datablog/
interactive/2012/nov
/14/local-authority-
cuts-map
Not only is one a Labour marginal and another a Conservative Authority it also covers George Osborne's consituency of Tatton.
The cuts being implemented are extremely unfair in terms of the how the cash is being reduced between different Local Authority areas but this doesn't change the fact it looks as though St Helens Council has made a shambolic mess of an equal pay issue which is potentially £20 million greater than the cuts being subjected on St Helens. Will any of those responsible resign?
However, I think that the major issue here has already been identified by several excellent contributions - the incompetence of the Council Leader and Chief Executive who are ultimately responsible for this shambles.
Bill Bradbury
says...
2:43pm Fri 16 Nov 12
Cllrs. rely on Officer advice and if that advice is to try and get away with whatever by any means, when it unravels then the blame lies at their footstool. It is a high risk game.
I do know that St.Helens was one of the first Authorities to address equal pay around dinner ladies and I thought this was settled long ago, but apparently not.
The only winners here will be the expensive lawyers who will keep this running as long as their bank balances can be topped up. As someone mentioned above, the losers will be the low paid at the expense of their jobs in order to pay for this mess, a phyrric victory for Unison and GMB?
Again, as others have written, St.Helens is not the only Authority to be caught out, Birmingham being the highest profile. They will get the money owed but at what cost?
pitbullboxing
says...
2:59pm Fri 16 Nov 12
fred loft
says...
7:24pm Fri 16 Nov 12
GOOD LUCK
anthonywilson
says...
8:46pm Fri 16 Nov 12
Bill Bradbury wrote:Your right to an extent Bill but ultimately very few people will publically admit they are/were wrong on issues like this Up to now in my previous posts on this matter I haven't singled any individual or Councillor out just spoke in general terms that the Council has made a mess of this. If its the officers that have given bad advice they should carry the can although its also fair to say the Councillors aren't wedded to that advice are they?
I know that this is a good opportunity for those regulars to have their usual go at the Cllrs. the Council and Marie Rimmer in particular BUT dk8St.hel above hits the right target.
Cllrs. rely on Officer advice and if that advice is to try and get away with whatever by any means, when it unravels then the blame lies at their footstool. It is a high risk game.
I do know that St.Helens was one of the first Authorities to address equal pay around dinner ladies and I thought this was settled long ago, but apparently not.
The only winners here will be the expensive lawyers who will keep this running as long as their bank balances can be topped up. As someone mentioned above, the losers will be the low paid at the expense of their jobs in order to pay for this mess, a phyrric victory for Unison and GMB?
Again, as others have written, St.Helens is not the only Authority to be caught out, Birmingham being the highest profile. They will get the money owed but at what cost?
Bill Bradbury
says...
11:20pm Fri 16 Nov 12
In this case it appears the Council's decision, as with many other councils, has been queried by the lawyers hence the appeal. As I wrote only the lawyers win in cases like this. They don't come cheap.
i5tola
says...
3:43am Sat 17 Nov 12
Sankey
says...
12:16pm Sat 17 Nov 12
saintsfan
says...
8:44pm Sat 17 Nov 12
Sankey wrote:Equivalency is based upon certain criteria which will cover things like educational qualifications required for the job, whether managerial responsibility is involved, what level of skill the job requires or whether a job requires a specialist skill. That kind of thing. Normally within councils every job is awarded a grade. Jobs may look radically different but the council will have assessed that certain jobs require the same level of skill and educational attainment and so grade them the same. If they are the same grade then they should be on the same pay. If the council then undertakes a regrade, as St Helens did at the time of this discrepancy, then those on the same grade should ALL have either gone down, gone up or stayed at the same grade.
I would like to understand the basis of thge pat inequality. Where people are doing exactly the same job e.g production line then that is clear but where jobs are indirectly comparable e.g indoor cleaner / outdoor refuse collector and the lawyers have equated them as similar then we have a problem. This aspect is not clear to me.
A bin man just wheels a wheelie bin to a loader, presses a button and the machine empties the bin. One bin man will drive the bin lorry. Whether they all can drive or only some can I don't know but if it is only some of them then this will be reflected in their grade and their pay.
Cleaners brush, polish, mop, wash and empty bins, and do so only in limited areas (council cleaners never clean desks, for example).
Therefore, aside from the bin lorry drivers, both bin men and cleaners require no special skill, no educational qualifications and no particular training since everyone can do what they are doing. They are both unskilled labour. So they would both be on the same grade. Or should be. Unless you happened to work for St Helens Council during that period and were a man, in which case you got special treatment.
chasmcn
says...
10:40pm Sat 17 Nov 12
mikeperry109 wrote:What i did not included from the data was deprivation
anthonywilson wrote:Another possible take is that the Labour councils were being generously funded during the New Labour 13 years as a reward for voting Labour, and the balance is now being redressed!
chasmcn wrote:An excellent observation.
Seeing as we are suppose to be in this all together you would think that the cuts would be fairly across the country which isn't the case
The national average of money cut to local authority's is £60.90
St Helens cuts are £183.00 per head
Wigan £108.00
Warrington £49.00
Knowsley £251.00
Liverpool £252.00
Cheshire East 19.00
can you spot which one is a labour marginal seat and which one is a tory seat ?
source
http://www.guardian.
co.uk/news/datablog/
interactive/2012/nov
/14/local-authority-
cuts-map
Not only is one a Labour marginal and another a Conservative Authority it also covers George Osborne's consituency of Tatton.
The cuts being implemented are extremely unfair in terms of the how the cash is being reduced between different Local Authority areas but this doesn't change the fact it looks as though St Helens Council has made a shambolic mess of an equal pay issue which is potentially £20 million greater than the cuts being subjected on St Helens. Will any of those responsible resign?
However, I think that the major issue here has already been identified by several excellent contributions - the incompetence of the Council Leader and Chief Executive who are ultimately responsible for this shambles.
St Helens is 64th on the list the highest being 1
Hackney is no 1 then Liverpool in fact the most deprived areas of the uk are having their money cut where as the richest areas of the uk are being barely being touched .
if we are all in this together then areas should be treated equally not for political purposes. a slow fuse is burning in country .
pitbullboxing
says...
7:14pm Mon 19 Nov 12
i5tola
says...
11:36pm Mon 19 Nov 12
pitbullboxing
says...
10:08am Tue 20 Nov 12
i5tola
says...
5:20pm Tue 20 Nov 12
pitbullboxing
says...
8:58pm Tue 20 Nov 12
keepitreel says...
11:29am Thu 15 Nov 12