A plan to dismiss over 1,000 council workers and re-employ them only if they accept new contracts, including wage cuts, has been described as ‘horrific’ by union representatives.
Leeds City Council devised the scheme to comply with new equal pay laws which mean that male and female members of staff who are graded at the same level must be paid the same.
Workers were asked to accept new contracts and in some cases a pay cut.
The 1,100 staff that have not accepted the new terms were sent letters telling them their employment would be terminated on October 31 and they would be offered ‘re-engagement’ under a new contract to start the following day.
The letter read: ‘If you report for work on or after 1 November 2008, not having accepted this offer of re-engagement, you will be asked to leave the premises, as you will no longer be an employee of Leeds City Council.’
New pay structures are being introduced by councils across the country to comply with the legislation.
A spokesman for Leeds Council said the decision was taken with ‘regret’ and after a two-year consultation with trade unions.
He said over 10,000 workers would be better off under the new contracts, another 10,000 would be unaffected and a further 2,500 would lose money.
Those facing a pay cut would be up to £3,000 a year worse off but would be given pay protection for three years, he added.
‘We have written to all members of staff involved in the first phase of the pay and grading project offering them new terms of employment and the majority have replied to say they have accepted,’ he said.
’However, we are in the unfortunate position that for a very small number of staff who have not accepted this offer, we have had to advise them of the need to begin dismissal and offer of immediate re-engagement proceedings.
‘This is regretful, but it is now the only remaining method of implementing the National Single Status Agreement that will ensure the Council's pay structure complies with equal pay legislation.’
Bill Chard, a local official with the GMB union stated: ‘Our members are not happy with that and they refused.’
He added that the plan to dismiss the workers was ‘horrific’.
Chard said the union had campaigned for the workers to receive equal pay, but had not expected the new arrangements.
‘What we wanted them to do was lift the women up and what they have done is drag the men down.
‘There was a right way to do this and a wrong way and this was the wrong way.’
‘It is absolutely extreme. It is not unheard of but it is almost unheard of. You might get a backstreet company doing this, some low lives, not a city council.’
He said the GMB was taking legal advice on the issue.
The council spokesman explained it was not necessarily those who would lose money under the new grading scheme that have so far refused to sign up.
He said those that consent to be re-employed will be able to appeal and may find they can rise to another grade during the three year pay protection period.
Other councils had opted for the same approach, including Birmingham who opted for ‘wholesale’ dismissal and re-employment, he added.
Leeds City Council devised the scheme to comply with new equal pay laws which mean that male and female members of staff who are graded at the same level must be paid the same.
Workers were asked to accept new contracts and in some cases a pay cut.
The 1,100 staff that have not accepted the new terms were sent letters telling them their employment would be terminated on October 31 and they would be offered ‘re-engagement’ under a new contract to start the following day.
The letter read: ‘If you report for work on or after 1 November 2008, not having accepted this offer of re-engagement, you will be asked to leave the premises, as you will no longer be an employee of Leeds City Council.’
New pay structures are being introduced by councils across the country to comply with the legislation.
A spokesman for Leeds Council said the decision was taken with ‘regret’ and after a two-year consultation with trade unions.
He said over 10,000 workers would be better off under the new contracts, another 10,000 would be unaffected and a further 2,500 would lose money.
Those facing a pay cut would be up to £3,000 a year worse off but would be given pay protection for three years, he added.
‘We have written to all members of staff involved in the first phase of the pay and grading project offering them new terms of employment and the majority have replied to say they have accepted,’ he said.
’However, we are in the unfortunate position that for a very small number of staff who have not accepted this offer, we have had to advise them of the need to begin dismissal and offer of immediate re-engagement proceedings.
‘This is regretful, but it is now the only remaining method of implementing the National Single Status Agreement that will ensure the Council's pay structure complies with equal pay legislation.’
Bill Chard, a local official with the GMB union stated: ‘Our members are not happy with that and they refused.’
He added that the plan to dismiss the workers was ‘horrific’.
Chard said the union had campaigned for the workers to receive equal pay, but had not expected the new arrangements.
‘What we wanted them to do was lift the women up and what they have done is drag the men down.
‘There was a right way to do this and a wrong way and this was the wrong way.’
‘It is absolutely extreme. It is not unheard of but it is almost unheard of. You might get a backstreet company doing this, some low lives, not a city council.’
He said the GMB was taking legal advice on the issue.
The council spokesman explained it was not necessarily those who would lose money under the new grading scheme that have so far refused to sign up.
He said those that consent to be re-employed will be able to appeal and may find they can rise to another grade during the three year pay protection period.
Other councils had opted for the same approach, including Birmingham who opted for ‘wholesale’ dismissal and re-employment, he added.
