COUNCIL leaders from across the UK will meet in the North-East tomorrow to discuss a multi-million pound litigation threat from thousands of low-paid women.
The equal pay wrangles could empty local authorities of spare cash, cost billions and affect services and jobs across the country.
Many female council workers were historically paid at a lower rate than their male counterparts and thousands are now claiming back pay from their employers for up to six years .
Councils are gradually eradicating the imbalance, but progress of negotiations with trade unions has been slow.
The matter has also been brought to a head by "no win, no fee" lawyers, who are collecting cases to sue for back pay.
The equal pay conference tomorrow at the Sage, in Gateshead, will hear from council executives, union bosses, as well as solicitors and other organisations. It has been arranged by the North-East Regional Employers' Organisation.
Director Mick Brodie said: "This is a huge national problem, in this region 11 local authorities have already paid out £100m and that doesn't take into account legal costs and the costs of implementing a new pay structure."
Mr Brodie said that councils across the UK were awaiting the outcome of two key equal pay cases from the North-East.
One is a case of a Middlesbrough woman, who is suing the GMB union for discrimination. A tribunal found in favour of the woman and the council is now appealing. The other is a case brought against Redcar and Cleveland Borough Council.
The equal pay wrangle has its roots in the North-East. It was this region that led the way in litigation and it is why a specialist court has been set up in Newcastle.
Sunderland City Council chief executive Ged Fitzgerald will address the conference. His council is thought to have paid £15m to women workers, with 900 still suing for more.
Mr Brodie said the North-East region was leading the lobbying of the national Government to step in and help councils.
He said: "Authorities don't have the money to pay huge sums out in compensation."
The Government is being asked to give permission for councils to borrow the money to pay the compensation
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