Cash-strapped Highland Council is facing a further budget strain to meet up to £500,000 in backdated holiday and overtime claims, it has emerged.
Protracted negotiations have been ongoing for three years between council officials and trade union bosses to settle claims.
A number of settlements have been agreed, but The Press and Journal can reveal around half-a-million pounds is still outstanding.
The financial pressure comes as the local authority faces making massive budget cuts – on top of claims for gender pay gap claims and annual pay rises.
The council said it has set aside £7.5m to pay for “non-staffing cost pressures” in addition to its other financial burdens.
John Gibson, Highland branch secretary of trade union Unison, said: “The financial position of Highland Council is looking pretty precarious.
“Negotiations about back pay on overtime an holiday entitlement go back to 2015.
“This is not affecting managers or directors, but the lowly paid workers of the council – cleaners, canteen staff, joiners, and the such.
“I would hope the council stands up to their responsibility and pay these people.”
A Highland Council spokeswoman said: “A general provision of £7.5m annually has been allowed for non-staffing cost pressures.
“This figure is intended to cover contractual cost increases, inflationary cost increases, the additional revenue costs that may result from capital investment, the cost impact of demographic change and cost increases that may occur for any other reason.”
Salary costs account for just over £288million of Highland Council spend in 2017/18, which is over half of overall net expenditure.
The spokeswoman added: “The Highland Council is in consultation with the trade unions with respect to payment of Holiday Pay.
“The consultation is ongoing and is being conducted in private through our Partnership Agreement.
“There is currently significant upward pressure being applied to salary costs, via the Scottish government’s pay policy, NHS pay policy and the demands of trade unions. Three different scenarios have been modelled for an annual pay award, increases of 1%, 3% and 5%.”
“Pay negotiations are ongoing at a national level. Highland Council has made provisions in its 18/19 budget of 3% up to £36,500 salary, 2% from £36,500 to £80k salary and for above £80k salary – £1,600 and where applicable 1% in line with Scottish Government’s current pay policy.”
