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The agreement between Birmingham City Council, Unison and the GMB union will see 6,000 staff with the authority receive settlement payouts. The equal pay issue was one of the key factors in the authority declaring effective bankruptcy last year when it said it was facing a bill of £760m to settle the claims.

Birmingham City Council has reached a historic legal agreement with trade unions to settle an equal pay claim, marking a significant step towards pay equity.

Council leader John Cotton said the agreement would mark the start of a new era of productive and progressive industrial relations in the city.