Union leaders have agreed to take a new pay deal from Glasgow City Council to their members later this month, following intensive negotiations involving the council and Scottish Government.

Trade union Unison and the council, which is Scotland’s largest local authority, have been at loggerheads over a long-running pay dispute as well as “fire and rehire” proposals from the council.

However council leader Ricky Bell has said the latest deal means he is able to “remove the unpalatable prospect of fire and rehire”.

Deputy First Minister Jenny Gilruth, who was involved in the talks, said the proposal was reached with the help of additional funding from the Scottish Government.

Glasgow City Council is seeking to bring in a new pay structure after the previous one was found to discriminate against female workers – but Unison has raised concerns that some staff still do not know what their wage would be under the new system, and some will be worse off.

The row over the fire-and-rehire plans, which would see 23,000 staff rehired on new contracts on January 1, prompted the Scottish Government to become involved.

On Monday, union leaders said a proposal for pay protection for workers facing losses has been increased to three years.

The council has also agreed to continue discussions with Unison on outstanding issues including lower-paid workers, allowances, unevaluated jobs, equality impacts and the operation of the new pay model.

Unison says the latest position creates a route towards a ballot of its membership.

“Unison stood firm because Glasgow’s workers deserved better than what was originally put on the table,” branch secretary Chris Sermanni said.

“That position has secured significant movement. Staff will have three years’ pay protection and further commitments around workers facing detriment.

“There’s now a path for Unison members to give their verdict without the immediate threat of dismissal and re-engagement hanging over them.

“Importantly though, this isn’t Unison’s acceptance of the pay and grading package and the fight for improvements isn’t over.”

He said the period ahead will be used to keep fighting to give the whole workforce the information they need to make their decision.

Ultimately, Mr Sermanni said it will be Unison members who decide.

According to union leaders, the council has agreed not to issue fire and rehire notices during the ballot process.

Unison said important issues remain unresolved and negotiations will continue before members vote.

The union is preparing for a ballot later in October, expected to run for approximately four weeks. The precise timetable will be confirmed to members once the remaining conditions and arrangements have been finalised.

David Hume, GMB organiser at the local authority, said the proposals have come after “seven years of hard negotiation”.

“Every day workers are being underpaid is a day too long and there is no more time to lose,” Mr Hume said.

“Our members at the council will now vote on these proposals as swiftly as possible.”

Mr Hume said the local authority had introduced new financial supports, including £110 million to cover additional back pay, to address concerns raised by unions since the framework was approved by councillors in August.

Glasgow City Council confirmed it has reached an agreement with union leaders.

Council leader Ricky Bell said the agreement removes the need for the council to consider dismissing and re-engaging staff and paves the way for the replacement of the city’s current discriminatory pay arrangements.

“I am delighted that we have been able to reach agreement with Unison,” Mr Bell said.

“This deal means we are able to remove the unpalatable prospect of fire and rehire, with proposals put to members in a ballot later this month.

“This is a strong and fair deal. Both GMB and Unite have already agreed to take it to their members and, with all three unions now engaging with their memberships, we are moving closer to the outcome we have always wanted to achieve: ending pay discrimination in Glasgow City Council once and for all.”

Ms Gilruth said: “I am pleased that Glasgow City Council has now reached agreement with the joint trade unions.

“I have been involved in intensive discussions in recent weeks, and this is the result of lengthy and detailed negotiations between Glasgow City Council, Unite, GMB and Unison.

“I would like to thank all of those who have worked tirelessly for their efforts in reaching this positive outcome.

“The revised proposal, facilitated by additional financial support from the Scottish Government, enables the council to end pay discrimination and protect all staff from any reduction in their pay until April 2030.

“It is welcome that we are now in a position where no dismissal letters will be issued, and there is no prospect of fire and rehire, and I hope that this is reassuring for staff.”