The new pay and grading structure at South Tyneside Council, affecting more than 6,000 employees, was rubber-stamped by members of the council's decision-making Cabinet yesterday.

It comes after Unison and GMB union members voted in favour of the deal.

The complex and protracted negotiations have helped remove past inequalities between predominantly male and female employees.

By brokering the negotiated settlement, it is believed the council will save in the region of £7m in potential payouts at employment tribunals.

Under the deal, 50 per cent of workers will remain on the same pay and grading structure, 40 per cent will be better off, and 10 per cent will be worse off – although those workers' pay will be protected for three years.

Ed Malcolm, lead member for resources, said other authorities faced much bigger cash settlements to deal with the same problem

He added: "This was a problem not of our making that had to be addressed, and now is the right time to put it
right."

Coun Iain Malcolm, the leader of South Tyneside Council, congratulated council officers and the trade unions for completing the "long and arduous task".