“Third Generation” Parity Payments Update

A letter has been sent to all Birmingham Branch members this week who may be eligible for the “third generation” equal pay payments, if you were employed by Birmingham City Council, Acivico or Birmingham Children’s Trust on or after 31st October 2018.

Please see below the letter sent by the joint trade unions:

Dear Union Member

The joint trade unions GMB, UNISON and Unite are writing to update you on the Memorandum of Understanding (MOU) that we have recently agreed with Birmingham City Council addressing so called “third generation” equal pay.

Please note neither the unions nor Birmingham City Council believe currently that there are any viable claims for so called “third generation”. The settlement you could receive under the MOU is a “parity payment” to union members who have not taken Equal Pay Claims with No Win No Fee (NWNF) lawyers (except for some Leigh Day clients). The negotiated offer is on the same basis as the pay-outs to NWNF clients and is comparable to what NWNF lawyers achieved. However, unlike NWNF solicitors the recognised trade unions will not deduct legal fees from the settlement amounts that have been negotiated on behalf of members. Please note that if you have previously brought a “third generation” claim with a NWNF lawyer and have received a settlement payment in relation to it, you will not be eligible for an offer under this MOU, unless you brought a claim with Leigh Day, in which case you could be eligible for an offer.

Those who hold membership with more than one union will, if eligible, only receive one offer from the Council.

The Council will make an offer in writing to eligible employees who are members of either GMB, UNISON or Unite and who were directly employed by the Council or one of its wholly owned companies at any time between 31 October 2018 and 14 May 2021. Please note that if you were employed at a voluntary aided school, foundation school or academy during that period, you will more than likely not have been legally employed by the Council and so would not be eligible for an offer.

If eligible, you will receive an offer based upon your grade. Each offer is calculated based upon how long you worked within a reckonable period between 1 April 2014 and 31 March 2020.

The maximum payment for each grade is based upon 6 years’ service in the reckonable period and is as follows:

Grade 1 £1249.69
Grade 2 £9675.00
Grade 3 £6046.88
Grade 4 £3225.00
Grade 5 £1804.38
Grade 6 £1249.69

For eligible grade 2, grade 3, grade 4 and grade 5 employees with less than 6 years in reckonable service, the offer will be reduced pro rata. For example, if an eligible grade 4 employee had 3 years’ service during the reckonable period, say their start date was 1 April 2017, their offer would be prorated to £1,612.50.

For eligible grade 1 and grade 6 employees, their offer will be £299.93 if they had less than six months’ service during the reckonable period, and it will be £1,249.69 if they had six months’ service or longer during the reckonable period.

There is no reduction for part timers who will, if eligible, receive the same offer as full timers.

If you had more than one job at the same time over the reckonable period you will, if eligible, be made one offer. This will be based upon whichever is the best offer.

If you have had successive jobs at different grades over the reckonable period you will, if eligible, be made one offer. This will be based upon how long you worked in each job.

Deductions will be made if you received Housing and/or Council Tax Benefit and/or Council Tax Support during the reckonable period.

We will check the calculations with you if you are eligible and receive an offer so please do not contact us now as we will not be able to give you advice without access to details.

You do not have to accept the offer should you receive one. You can pursue the matter yourself but this will be without union support unless you can provide us with the evidence to make a claim.

The Council hopes to be able to send out offers to each union’s eligible membership by 14 February 2022. However, this is a very big and complex task and will take time involving several thousands of union members. Please do not call or contact the Council. If you are eligible for an offer, the Council will contact you with the details. Premature queries will hamper the Council’s progress in calculating offers and preparing offer documentation.

If eligible for an offer, you will likely be invited to an ACAS signing day, the logistics of this are yet to be decided on and may well be “virtual” depending on government guidance near the time.

Finally, GMB, UNISON and Unite would like to thank you for your patience. Please do not call us – as we will not be able to provide any more information at this stage. We will let you know about developments as soon as we have any further information.

Please ensure your details are up to date with your respective trade union.

If you are still employed by the Council, please also ensure your personal details are up to date with the Council. Otherwise it could result in your offer documentation, if you are eligible to receive an offer, being sent to a previous address or containing a former name. To update your personal details, please go to the ‘Working at the Council’ section of the staff intranet, where you will be able to use the ‘Change your personal details’ service to update your personal information, address details and bank details.

If you pay by direct debit and have not signed a consent form yet you will need to get in touch by contacting info@birminghamunison.co.uk.

This offer only applies to members who were/are employed by BCC, Acivico, BCT on 31st October 2018.