Costs of union deal over bins strike could cripple city council Fears that crisis may not be over as financial reality is laid bare in report
THE deal brokered to end the crippling Birmingham bins strike could leave the city council facing financial meltdown, a crisis report warns.
The document warns of “significant potential financial implications” if the authority does not follow through with the controversial jobs and hours shake-up that triggered the bitter seven-week walkout by Unite union members.
It says that the council, which spent more than £300,000 a week responding to the strike, would be unlikely to be able to defend equal pay claims of the type which have cost it more than £1.1 billion in recent years.
The huge bill came about when it emerged that bonuses, shift allowances, shorter working hours and routine overtime paid to binmen up to 2011 were not made available to other employees. The report, written by interim chief executive Stella Manzie, warns that a rush of new claims would “wipe out” the pot of cash earmarked to settle the litigation as well as any uncommitted investment funds and “all available” reserves.
Ms Manzie said spending in other areas would also need to be slashed to the bone and the authority would be forced to consider whether it could set a “lawful and balanced budget”.
The report is acutely embarrassing for council leader John Clancy, who was personally credited with ending the strike by Unite after talks at conciliation service Acas.
It was due to be discussed at a cabinet meeting last week but will now be considered on September 1.
The Labour group said the report is “incomplete” but opposition councillors said the delay was designed to allow Councillor Clancy’s cabinet time to agree a unified position over the deal with the Unite union.
Crews returned to work after council bosses “agreed in principle” to keeping more than 100 grade three supervisor roles as part of Birmingham’s rubbish collection teams. The authority had wanted to change dustcart crews’ working hours and downgrade the supervisor jobs.
Unite said last week that the strike had only been suspended – raising the prospect of a renewed walkout if the agreement breaks down.
“The position is very, very worrying,” said Liberal Democrat group leader Councillor Jon Hunt.
“There’s no deal to speak of – that’s the problem. His cabinet are at loggerheads, as many of them are members of the union themselves.
“He’s stuck between a rock and a hard place because the council wants to make cuts, but the Labour Party wants to be loyal to the union.”