Brighton and Hove City Council is unsure about the level of financial exposure it faces from more than 1,000 unresolved equal pay claims, its external auditor has warned.
A report from Grant Thornton cautioned that the council's potential liabilities linked to the claims – lodged by the GMB trade union – are ‘unquantifiable’, with the legal process expected to take at least two years to resolve.
The council is contesting the claims and maintains they are ‘defensible’, saying it has sought legal advice and commissioned external legal support to fight the case.
A spokesperson for Brighton & Hove City Council said: 'Following legal advice, we filed a defence against this equal pay claim. Our position has not changed.
'The term unquantifiable as used in this report, therefore, is purely factual. At this stage of proceedings, our external auditor does not have the relevant level of detail to accurately forecast potential financial risk. Its use here is simply a matter of auditing terminology.
'We’re proud of our excellent record as a fair and inclusive employer and our approach to collaborating with our recognised unions to ensure this is maintained.'
Oliver Cruikshank, GMB Regional Organiser, said: 'Right from day one it was clear for all to see that BHCC is liable for these claims and now a new report confirms the ongoing risk.
'The only solution to this is for them to get around the table, get into the detail and reach a resolution to bring this injustice to an end.'
