Glasgow City Council has reached a £770 million agreement to settle outstanding claims in an equal pay dispute.
CouncilThe local authority has had to"sell and leaseback" a range of its buildings, including the city's Kelvingrove Art Gallery and the City Chambers, in order to afford the compensation.
Payments will now be made to a total of 19,000 current and former employees to cover the “gap period” between the first agreement in 2018 and the implementation of the new pay and grading system. The local authority paid out £505m to 13,000 in 2019 to end a legal challenge over the unfair pay grade system which saw some male workers paid more than women in equivalent roles. However, that only covered the period up to 2018.
Taking the compensation above 700m will settle the remaining liability and outstanding claims relating to employees represented by Action 4 EqualityThis has been predominantly funded by two rounds of selling off council buildings and renting them back on lease periods of up to 30 years.
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