Two art galleries and Glasgow City Chambers are among buildings which are to be “sold” to settle equal pay claims.
Councillors on Thursday approved a strategy to sell the buildings, valued at about £200m, to an arm’s length company and lease them back.
Glasgow City Council agreed to pay out at least £500m in 2019, following a long-running equal pay row.
It has now published an update on work to resolve the remaining cases, which include some claims made too late to be included in the 2019 deal and also the period after 2018, using property assets to secure loans.
Council leader Susan Aitken said: “Raising these kinds of sums is exceptionally challenging – and the high-profile properties involved, particularly in this second tranche, illustrates that.
“However, the city’s historic failures on equal pay come at a price – and releasing the potential of our property, while keeping it in the city’s ownership, at least protects services and the future of these valued assets.”
The 2019 deal was financed through a sale-and-lease-back arrangement, with wholly-owned arm’s-length company City Property Glasgow Investments borrowing to purchase a portfolio of buildings from the council, including the Riverside Museum, Glasgow Royal Concert Hall and Emirates Arena; then leasing them back.
A similar deal is planned for the latest round of settlements, which will see the council’s City Chambers headquarters, Kelvingrove Art Gallery, the Gallery of Modern Art, Kelvin Hall and school campuses at Sighthill and Gowanbank sold and leased back.
The council said that the buildings will remain in the city’s ownership and users will not see any difference in how they access them on a day-to-day basis.
This will raise about £200m, meaning that together with existing reserves, the total funding available to settle equal pay liabilities will be about £270m.
Aitken said: “I’m determined to deliver pay justice for thousands of women in our workforce.
“After a decade going round in circles in the courts, we made this a priority in the last council term and, in 12 months, reached a fair settlement through open and honest negotiations.
“This update is about putting the building blocks in place to finish that job.
“We are, again, making this a priority early in the council term and seeking to put right a wrong that has damaged the council, its workforce and the city for too long.”
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