Glasgow to 'sell' city chambers and Kelvingrove to settle equal pay claims

The proposal was signed off by councillors this morning. 

The other properties involved in the scheme include Kelvin Hall, and brand new schools in Sighthill and Gowanbank.

In a paper before the City Administration Committee, officers insist that “all operational activity carried out at these establishments will continue as normal and will not be affected by the sale and leaseback proposals."

The local authority paid out  £505m in 2019 to end a legal challenge over the unfair pay grade system which saw some male workers paid more than women in equivalent roles. 

However, that only covered the period up to 2018.

As a new pay grading scheme has still not been introduced, the authority needs to settle the remaining liability as well as some outstanding claims.

The sale and lease-back arrangement was used to finance the previous settlement, with the council's arm’s-length City Property Glasgow Investments LLP borrowing to purchase the buildings and then leasing them back.

The paper goes on to say that doing the same again with Kelvingrove and the five other buildings "will significantly contribute to the overall funding available for the settlement of the remaining equal pay liability."

According to the independent advice taken by the council, the total value of the six properties is around £200m. 

Another £70m is still in reserve from the first round. 

The council say the deal means the buildings "will remain in the city’s ownership and users will not see any difference in how they access them on a day-to-day basis. "

Council leader Susan Aitken said: “I’m determined to deliver pay justice for thousands of women in our workforce.

“After a decade going round in circles in the courts, we made this a priority in the last council term and, in twelve months, reached a fair settlement through open and honest negotiations.

“This update is about putting the building blocks in place to finish that job.

“We are, again, making this a priority early in the council term and seeking to put right a wrong that has damaged the council, its workforce and the city for too long.”

She added: “Raising these kinds of sums is exceptionally challenging – and the high-profile properties involved, particularly in this second tranche, illustrates that.

“However, the city’s historic failures on equal pay come at a price – and releasing the potential of our property, while keeping it in the city’s ownership, at least protects services and the future of these valued assets.”

GMB Scotland Organiser Sean Baillie said the council having to take this action was a consequence of their "chronic sex discrimination of low-paid women workers."

He said there would be "highly paid unelected officials sitting uncomfortably in the city chambers today."

The trade unionist added: “Let’s also be clear this plan is to generate funding to support negotiations for interim equal pay settlements and not full and final settlements, which can only be achieved when the council has finally replaced its discriminatory job evaluation system.

“We would like the public to understand that our members are fighting for the return of money stolen from them by their employer – this is a long and hard battle, and their expectations are the council will honour its liabilities.

“That’s the very least these workers deserve for the discrimination they have suffered and continue to endure.”

Liberal Democrat spokesperson for Scotland, Christine Jardine described the plan as "absolutely horrendous."

She added: "The Kelvingrove Art Gallery and the City Chambers are a deeply important part of the city and to sell them off would be devastating.

“Due to years of an SNP government slashing local authority budgets, this is now a possibility.

“Scottish Liberal Democrats would give councils the funding they have been starved of for years and prevent the SNP from doing damage to Scotland’s cultural heritage.”