16 January 2009
By Tash Shifrin
Bury council has been forced to retract letters terminating the contracts of its 4,000 staff within a week of sending them.
The Greater Manchester authority sent the letters on January 2, ending the contracts but offering re-engagement on new terms. The aim was to force through a new pay and grading structure to meet the council's equal pay obligations.
The withdrawal of the notices means Bury will be unable to implement new terms before April 1 and will have to pay any increments due to staff under their existing contracts.
The move to sack and rehire staff follows similar action taken by Birmingham City Council in April last year, in a dispute also driven by equal pay requirements.
In November, the threat of strikes forced the London Borough of Hammersmith and Fulham to backtrack on its plan to impose new contracts in an attempt to cut costs.
Bury rescinded its letters on January 8, after a letter from Unison solicitors, to allow for consultation with the unions about how the new pay structure would be implemented.
Council chief executive Mark Sanders said: 'It is regrettable that we have had to withdraw the letter issued to staff earlier this week, as 10% of the employees had already accepted the new terms and conditions. However, having considered up-to-date legal advice, we feel that this is the most appropriate course of action.'
Bury's new pay structure is expected to result in around a quarter of staff losing pay. The local Unison branch said the worst-hit employees could lose more than £7,000.
Branch treasurer Gareth Bevan said the pay cuts would have a 'devastating effect' on those staff. He added: 'The way the authority has handled this has been atrocious really.'
PFjan2009
