Sheffield City Council has reached an agreement with its trade union partners, GMB, Unison and Unite, to resolve historical equal pay issues.
After the issue was first raised by GMB back in September 2023, the council has looked at every role in the organisation and maintained schools to identify any employees who may be eligible for equal pay redress.
As a result, more than 3,600 employees in around 260 roles will receive a redress payment to address the equal pay issues. The overall total is estimated to cost around £36 million.
The payments to eligible employees will be funded by reserves, which means there will not be additional council tax increases or savings for the council.
Councillor Tom Hunt, leader of Sheffield City Council, 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.”
Kate Josephs, chief executive of Sheffield City Council, added: “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.”
Spokespeople for trade unions GMB, Unison and Unite said: “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 unions will work together to implement this new framework that reflects the true value of all roles.”
