Council that tried to dodge duties in equal pay dispute faces £1m bill

A council is facing a bill of £1 million after trying to dodge its duties to hundreds of women who lost out on equal pay, the Sunday Herald reports.

North Lanarkshire Council has been ordered to make the payouts after attempting to “obstruct” a deal for nearly 700 women according to the Scottish Public Pensions Agency (SPPA).

The council underpaid 681 women for years. They were paid lower wages than male colleagues doing similar jobs but last year the authority was forced to give them back-pay and, through a second negotiated settlement, a further £7.1m.

However, their pension deals were still lower than male colleagues because of their lower contributions. Under local government regulations, back-pay must be “pensionable”, which means councils must top up their employer contributions to pension funds.

Earlier this year, however, North Lanarkshire claimed the second round of back-pay was not pensionable because it qualified as “compensation”.

Lawyers for the women appealed to the SPPA in March.

Now, the SPPA has ruled the council “misconstrued” the law, adding its arguments were “confused and an obstruction to finding an equitable solution to the disagreement”.

It is now due to pay employer contributions, national insurance and income tax on the second wave of back-pay, totalling an estimated £1m.

The council has until August 20 to decide whether or not to seek judicial review of the decision in the Court of Session.

Solicitor Sarah Gilzean of HBJ Gateley, who represented the women before the the SPPA, said: “We think the SPPA decision is unequivocally in our favour.”

Stefan Cross QC, of Action 4 Equality Scotland, said: “I find it incredible that a Labour-run council has been fighting tooth and nail to deny low-paid women workers the right to equal treatment under the Local Government Pension Scheme.

“If North Lanarkshire had got its way, some of the council’s lowest paid workers would have been penalised for the rest of their lives.

“We welcome the landmark decision of the SPPA and we are calling on North Lanarkshire to face up to its obligations, accept this decision and do everything they can to ensure the lowest paid council workers are able to maximise their pension benefits.”

A spokesman for North Lanarkshire Council said: “We note the decision of the Scottish ministers in this case. We are examining the decision and will reach a view on our next steps in due course. However, the council remains committed to equality and has settled more than £100m of claims. We will continue to do so where these are justified.”