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Birmingham City Council could open itself up to equal pay liabilities worth £200m if a proposed deal unveiled by leader Cllr John Cotton goes ahead. In his capacity as the leader of the Labour group, Cotton claimed he had tabled an offer he believed would ‘end the strike once and for all'.Speaking outside the council's headquarters in the run up to next week's local elections, he said an improved offer had been made to trade union Unite based on ‘ballpark issues' discussed at the Advisory, Conciliation and Arbitration Service.But Birmingham sources claimed the deal could open up the council to a further £200m in equal pay liabilities – adding to the more than £1bn paid out to date.The terms of the proposed deal include the cessation of legal action, quashing of disciplinary issues and permanent employment for agency workers.Cotton said: ‘After months of frustration and delay, for the first time in over 12 months a negotiated settlement to end the bin strike is now within sight.‘I have instructed officers to move forward with negotiations so that we can bring this matter to a close.'A Birmingham source stressed any agreement would have to go through the governance processes of the council.Birmingham's statutory intervention means any deal would need to be approved by the Government-appointed commissioners, as well as council officers, politicians and union members. Unite has claimed ‘unelected' commissioners have twice blocked a deal.While the deal has the political support of Cotton as current leader, polls suggest Labour is unlikely to maintain full control of the council following the elections, and the leader's own seat is also under threat.Birmingham's Lib Dem group leader Roger Harmer said: ‘A deal can only be made by senior council officers, and I am told they have played no part in developing this proposal. This is nothing short of a cynical pre-election ploy by a Labour Party heading for a massive defeat.'Tory group leader Robert Alden said it was an ‘illegal deal that will saddle the people of Birmingham with tens of millions of pounds of equal pay liability'.The dispute centres on the removal of the waste recycling and collection officer role, which would have resulted in some staff losing thousands of pounds in reduced salaries.Unite claimed the Cotton deal would include a £16,000 pay out to every affected bin worker – at a cost of up to £5m for the council.General secretary Sharon Graham said: ‘The move made today by the leader of the council is a vindication of the bin workers' struggle for a decent deal.'Heather Jameson says if Cllr John Cotton's pay deal - announced by him as Labour leader of Birmingham City Council, not leader of the council - goes ahead 'it would mean another equal pay headache for the city'.

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POLICY AND POLITICS

EXCLUSIVE: 'Illegal' deal to end Birmingham strike risks £200m equal pay bill

By Heather Jameson, Martin Ford | 30 April 2026

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