Council under fire over contracts

A plan to dismiss 1,100 council workers and re-employ them only if they accept new contracts, including wage cuts, has been called "horrific" by their union.

Leeds City Council devised the scheme to comply with new laws which mean that male and female members of staff graded at the same level must be paid equally.

Staff were told they would be dismissed in October if they refused the terms.

The council said the decision was taken with "regret" after a consultation with unions, and some staff would benefit.

The 1,100 staff that have not accepted the new terms were sent letters telling them their employment would be terminated on 31 October and they would be offered "re-engagement" under a new contract to start the following day.

Legal advice

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."

Bill Chard, a local official with the GMB union said the plan to dismiss the workers was "horrific".

He said the union had campaigned for the workers to receive equal pay, but wanted the council to increase women's wages.

"What they have done is drag the men down," he said. "There was a right way to do this and a wrong way and this was the wrong way."

He said the GMB was taking legal advice on the issue, as it believed the staff would be unfairly dismissed.

New pay structures are being introduced by councils across the country to comply with the legislation.

'Unfortunate position'

A spokesman for Leeds City Council 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."

The council spokesman said it was not necessarily those who would lose money under the new grading scheme that have so far refused to sign up.