Glasgow’s equal pay system must be implemented at pace, watchdog warns

Council chiefs in Glasgow implementing a new system aimed at securing equal pay for all employees must continue at pace, a watchdog has warned.

A report by the Accounts Commission commends Glasgow City Council for its effective governance arrangements around the equal pay claims.

Since 2018, the local authority has settled or is in the process of settling around 19,000 claims from former and current employees who had been underpaid in comparison to their counterparts.

It has cost the local authority £765 million to date, funded through sale and leaseback arrangements with 17 council-owned bodies on cultural, sporting and education properties.

The report noted the council is now settling the 150 existing pay claims that were outstanding since 2018.

However, it urges the local authority to speed up the process of introducing a new pay and grading structure which would prevent future inequalities.

The implementation was delayed due to the Covid-19 pandemic, with a revised timetable now estimating its conclusion in April 2024.

The report noted: “We urge all parties involved to continue to work at pace to conclude the recovery plan for job evaluation in accordance with this timetable and we encourage the council to ensure it has appropriate contingency plans, bearing in mind the risks identified in relation to the scale of the job evaluation process.”

It also said the watchdog will monitor how effectively the council addresses any service implications caused by the sale and leaseback of council properties being funding through its annual revenue budget.

Ronnie Hinds, chair of the Accounts Commission, said: “The commission has previously commended Glasgow City Council for its work in addressing the pay inequalities that staff have experienced, some for decades.

“The council has strong processes in place to deliver a new pay and grading structure, which we are pleased to see given the complexity of this issue and the financial costs.

“However, all parties involved need to maintain the pace of work to ensure the new system is implemented as planned.

“This will help to prevent workers suffering inequalities in future and minimise the risk of the council having to sell further assets in order to pay compensation.

“The commission will also monitor how effectively the council addresses the financial implications and any impact on services, at a time when money is tight across local government in Scotland.”

The council leases back the 17 properties for 32 years at a cost of £32.1 million annually on top of inflation.

It includes the Kelvingrove Art Gallery, the City Chambers, the Emirates Arena and the SEC Armadillo.

Council leader Susan Aitken said: “I made it a priority to put right years of pay inequality in Glasgow. I’m very proud of the progress we have made and to be nearing the end of what has been an enormous challenge.

“The price of discrimination is a high one and Glasgow will be paying it for a long time.

“However, if years of fighting women workers that were seeking justice was perhaps the worst thing this council has done, then I believe the effort over the past five years to bring us to this point has been among the best.

“It has been a hard road. It has been fraught and it has been painful at times – but it has been essential to right an egregious wrong.”