Glasgow City Council has temporarily shelved plans to dismiss and rehire over 23,000 employees following renewed negotiations with trade unions and government intervention. The move comes after Deputy First Minister Jenny Gilruth stepped in to mediate discussions between the authority and representatives from Unison, GMB, and Unite, with formal talks set to resume early next week.
The council had previously threatened mass dismissals as part of efforts to overhaul a pay system ruled discriminatory towards predominantly female workers. While the proposed changes aimed to address years of unequal compensation, they would also result in reduced earnings for approximately 11% of staff.
Government Steps In to Prevent Mass Dismissals
Deputy First Minister Jenny Gilruth confirmed that the Scottish Government does not support fire-and-rehire practices and urged all parties to return to negotiations. Speaking after the latest round of talks, Gilruth emphasised the importance of reaching a collective agreement that ends discriminatory pay structures while protecting workers’ interests.
“Given the significance of this situation and the impact on staff, I wanted to bring all parties together to make clear that I expect negotiations between the council and unions to continue so that a collective agreement can be reached,” Gilruth said.
Her intervention followed mounting pressure from unions and public concern over the potential disruption to thousands of council employees. The letters notifying staff of their dismissal, originally scheduled for distribution this week, will now not be sent.
Workers Caught in Pay Dispute Face Uncertainty
For many employees, the pause in proceedings offers little immediate relief. Joanne, a support-for-learning worker with 25 years of service, described receiving the initial notification as “heartbreaking.” She faces an annual pay cut of around £300 under the new structure and expressed frustration at what she sees as the council’s contradictory stance on employee welfare.
“I came away from my work crying – really, really upset,” she said. “After 25 years’ service to Glasgow City Council, I am getting let down yet again.”
Her comments reflect broader concerns among staff affected by the revised pay grading system. The overhaul, which emerged from a comprehensive job evaluation process assessing roles across 13 criteria including physical effort and mental skills, aims to rectify long-standing pay inequities. However, it also means some workers could see their salaries reduced by as much as £11,500 annually.
Unions Divided Over Path Forward
While GMB and Unite supported balloting members on the revised offer, Unison walked away from earlier negotiations, accusing the council of employing “bullying tactics.” Sylvia Haughey, the union’s education convener, defended the decision not to proceed with a member vote, stating: “We haven’t betrayed anyone, we certainly haven’t betrayed our members. We are out fighting for our members.”
She highlighted the financial impact on workers, noting that some face losses ranging from £200 to £12,000 per year. “We are willing to speak to the council at any time,” Haughey added.
Glasgow City Council’s communications director, Colin Edgar, acknowledged the difficulty of the situation but stressed that all affected employees would be rehired without interruption to their service continuity. He described the proposed changes as a necessary step towards rectifying an unlawful pay scheme, despite the unavoidable consequences for a minority of staff.
Why it Matters
This dispute underscores the complex challenge of addressing historical gender-based pay discrimination while minimising harm to individual workers. With Glasgow City Council having already paid over £770 million to 19,000 claimants in previous equal pay settlements, the current negotiations carry significant financial and political weight. The outcome will likely set a precedent for how public bodies across the UK navigate similar restructuring efforts, particularly in light of upcoming employment law changes that will make dismissals related to contract disputes automatically unfair. For the 23,000 council workers caught in the middle, the next phase of talks represents a critical juncture in determining whether fair pay can truly be achieved without sacrificing livelihoods.
