THOUSANDS of underpaid women will finally receive their due after Birmingham City Council announced a settlement to its historic equal pay claim with the GMB and Unison unions today.

Europe’s largest local authority said a framework agreement will be put forward by its cabinet committee next week for formal approval.

GMB said the agreement meant that, four years after launching their campaign, 6,000 low-paid workers — predominantly women — look set to finally receive settlement payments from the local authority.

The payouts are expected to be up to four times higher than the payment offered to workers in 2021, with settlement expected to take place in the middle of 2025, the union said.

The full terms of the settlement are confidential, but the pay claim had left the authority with liabilities estimated at £760 million when it declared effective bankruptcy last year.

GMB head of industrial relations Rhea Wolfson hailed the “historic outcome” for women employed by the council.

“This result would not have happened without their dedicated and tireless leadership of a campaign which has overcome huge odds,” she said.

“They were told there wasn’t enough money, that they must accept that women workers are paid less.

“But they showed council bosses that the show doesn’t go on without them.

“Their bravery on the picket line, in the classrooms, care homes, offices and workplaces across Birmingham has been staggering.

“Pay discrimination is rife and GMB will not turn a blind eye when women workers are being short-changed.”

Unison West Midlands head of local government Claire Campbell added: “This is a good day for low-paid women who work at the council. They will at last get the pay justice they deserve.

“Birmingham City Council has longstanding industrial relations issues, but this agreement will show what can be achieved when the council negotiates constructively and in good faith.

“This will hopefully be the much-needed turning point for staff, services and local communities across the city.”

The council said the settlement cost falls within the limit of an “exceptional financial support” package agreed with the previous government in January.

Council leader John Cotton said the agreement “marks the end of an intense period of dialogue,” thanking GMB and Unison for their constructive approach to negotiations.

In June 2023, the authority said it had already paid out £1.1 billion to settle equal pay claims over the previous decade.