Mike Dailly

The fees paid are understood to be approximately £38 million, with further potential fees to be paid in 2021 on final equal pay awards. GLC is undertaking this work on a pro bono basis.

Earlier this month A4ES suspended all activities after it transpired that it was not authorised by the Financial Conduct Authority (FCA) to conduct business as a claims management company (CMCs).

The FCA took over jurisdiction for all CMCs on 1 April 2019 in terms of the Financial Claims and Guidance Act 2018.

Mike Dailly, principal solicitor and solicitor advocate at GLC, said: “So far, we have established that many women represented by trade unions were never told they would have to pay fees for their equal pay claims – some were explicitly told no fees were payable – and were never provided with terms of business letters from their solicitors setting out the need to pay fees or how these would be calculated. The position has become much more concerning as we now have partial explanations that are completely contradictory.

“Following a client complaint, we have been advised by one law firm acting for a trade union as follows: ‘The Council had to find a way to pay the legal fees of the claimants whose fees were not being paid by their trade union. This was done by adding a percentage figure to the Settlement Sum of every claimant who accepted an offer … This amount was then ‘deducted’ from that Claimant and paid by the Council to the claimant-side representatives’.

“This assertion raises more questions than it does answers. In the BBC Disclosure documentary in October 2019, Stefan Cross of A4ES explains that 6.9 per cent of all awards went to pay his fees and that of other representatives. When asked whether this meant he was also receiving fees in relation to women who were not A4ES clients he said: ‘We had this discussion with the trade unions, every single agreement includes a legal commitment to make that payment’.

“However, confusingly clause 3.2 of the settlement agreement fails to explain who fees are being paid to or how they are calculated. The agreement simply states that the employee accepts and agrees that a payment towards ‘legal fees and administrative expenses which has been distributed between all claimants to ensure that all claimants who receive a settlement from the Employer receive a settlement on the same basis (parity)’. Many trade union members were told no fees were payable.”

Mr Dailly added: “Is it the case that Glasgow City Council has paid an extra £38m of taxpayers money on top of equal pay claims of over half a billion pounds to pay the legal fees of a private claims management company and others? Or is it the case the £38m has been deducted from the settlement figures of women?”