The organisation responsible for services including school catering and roads maintenance across Tayside has been accused of “dodging its moral responsibilities” amid an ongoing dispute over equal pay.
The GMB union has accused Tayside Contracts of “hiding behind legal processes” to avoid potentially settling with women who have lodged equal pay claims against them.
Union members hope to receive thousands of pounds in compensation for years of alleged lost earnings which they say stems an unsound pay agreement.
The pay structure, GMB argues, gave bonuses to workers in predominantly male roles such as plumbers and electricians while ignoring mainly female roles in care and educational support.
Action has also been launched against Dundee City Council and Leisure and Culture Dundee in the same dispute.
Question over Tayside Contracts equal pay claims
Tayside Contracts was launched in 1996 as an arms-length external organisation for the councils in the region.
And GMB claims many low paid council workers, “predominantly women”, were subsequently transferred to this organisation from the local authorities.
However legal advice given to the union has suggested these women may not be able to mount equal pay claims because of the legal status of Tayside Contracts.
This has led to accusations the organisation is hiding behind the legal process to “shed responsibility” for these workers.
Cara Stevenson, GMB Scotland organiser, said: “With hindsight it is easy to suspect one reason this organisation was set up all those years ago, was that equal pay claims were looming and the councils were attempting to shed responsibility for these workers.
“We are urging all of the councils and Tayside Contracts to stop hiding and do the right thing, to act with decency and fairness, and agree a settlement with every woman who worked for them and was treated unfairly for all those years.”
Equal pay claims lodged across U.K
Equal pay claims have dogged local authorities across the U.K in recent years.
Last week, Birmingham City Council announced they were effectively bankrupt after revealing it has to pay up to £760m to settle these cases.
And in 2022, Glasgow City Council agreed to pay £770m in settlements after facing a barrage of claims.
Tayside Contracts declined to comment.
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