Thousands of workers at UK retailer next win equal pay case

Equal pay victory: More than 3,500 current and former employees of British retailer Next won their equal pay case on Tuesday, their lawyers said, ending a six-year battle.

The legal firm Leigh Day, which is representing the claimants, has stated that an Employment Tribunal concluded that Next had failed to demonstrate that it did not discriminate on grounds of sex because it paid its predominantly female sales consultants less than its warehouse workers.

Six years' back pay

The ruling gives workers the right to back pay for up to six years before lodging the claim and compensation for the intervening time-a total estimated at more than £30 million ($39.6 million).

Leigh Day said that the judgement would therefore be an important win for its 112,000 staff in similar cases against big retailers Asda, Tesco, Sainsbury's, Morrisons and Co-op. But each case will be dealt with on its merits.

A tribunal in Leeds, Northern England, ruled this year that work carried out by women at Next stores was equivalent to those at the warehouse, yet receiving different pay packets.

Helen Scarsbrook, one of three leading claimants, was euphoric and pleased: “After a long six-year struggle for the equal pay we believed we deserved, today we can proudly say we won.”

Financial choice over fairness

Leigh Day partner Elizabeth George said the case was a textbook example of the type of claim equal pay legislation is intended to address. When jobs dominated by women are paid less than those dominated by men, even where it's equal value work, employers can't justify lower pay simply by referring to the going market rate, she said.

The tribunal concluded that Next was in a position to pay more yet had chosen not to, basing its decision on the cost perspective.

In response, Next stated that while the tribunal had dismissed most of the claims, including those of direct discrimination and bonus payments, it intends to appeal. "This is the first equal pay group action in the private sector to be decided at Tribunal level, raising several important legal issues," the company said in a statement.

(With Reuters Inputs)