Negotiations with the trade unions representing Coventry City Council staff over the Single Status pay agreement are to begin again after councillors unanimously voted to ditch their own pay policy.

The talks, aimed at equalising pay, broke down because the council insisted that the overall wage bill could not change.

This meant that if lower paid workers were going to get more money, others would face cuts.

Angry demonstrations, a strong vote by union staff against the measure and Labour losses in the May local election has prompted the about-turn.

Cllr John Mutton, who is the cabinet member in charge of Resources, said that negotiations would start again without the restrictions of cost neutrality.

He warned the unions that the council did not have an unlimited chequebook, but said there was a good chance that agreement can be reached.

He said there were many difficulties with equalising pay – one hand it stopped people demanding a high salary simply through long service, but a balance in the wage structure had to be found so good performance could be rewarded.

Cllr Mutton said:

“The fact that we have people doing the same job to the same standard but because someone’s bum has been sitting behind the same desk for longer they get paid more is what we have to get away from.

“But the absence of some form of performance related pays undermines managers and constrains employees.”

Cllr Mutton, himself a former shop steward, said:

“Bonus schemes are one of the problems we face now and they are down to me because I negotiated some of those agreements some time ago.

“From the informal discussions that I have had I believe that if both sides enter into negotiations  in a totally honest and open way that there’s at least a possibility of achieving a negotiated settlement that meets the interests of the council, the interest of the work force, the interests of the unions and the interests of the people of Coventry.”

The change was welcomed by the other political groups on the council.

Dave Nellist (Socialist, St Michael’s) said when the “cost neutrality” policy was introduced he had advocated a different option similar to the one now being followed.

And he said the effect on morale among staff uncertain about their future had been devastating.

“We wouldn’t have lost a number of very experiences employees from this authority who have left and gone to other jobs leaving holes to fill.”

Cllr Andy Matchet (Con, Earlsdon), said the Conservative group supported the new measures, but criticised the time it had taken to reach this point.

“We believe that negotiation as a better way forward than imposition, but we are not supportive of two years of a political vacuum by the Labour group on this matter and what appears to be gross mismanagement of the negotiations.”

“It would be laughable if it wasn’t so tragic.”