£70 Million Cost of Birmingham Bin Strike Revealed in Leaked Council Report

Birmingham’s ongoing bin strike is set to cost the city council up to £70 million by the end of the year if left unresolved, according to a leaked internal report.

This confidential 40-page document, obtained by BirminghamLive, reveals the severe consequences of the dispute, as council officials scramble for a “least worst” solution. The report stresses that there is no “cost-free” option to end the strike.

Urgent resolution is critical as the prolonged disruption harms Birmingham’s reputation and discourages business investment. The report estimates the strike has already cost between £20 million and £35 million in the 2025-26 financial year, with an equivalent amount expected this year — pushing total losses to between £40 million and £70 million.

This staggering sum includes at least £600,000 per month spent on agency workers and contingency arrangements, along with millions on overhauling waste services, lost revenue from deferred garden and bulky waste collections, and rising legal fees.

Council officers also highlight the damage done to Birmingham’s image as a clean, safe city, which in turn weakens investor confidence.

The report contains plans for a final settlement attempt: offering payments of £3,000 or £7,000 to about 150 striking workers who have filed Employment Tribunal claims, provided they drop these claims and return to work. Striking workers without legal claims, around 100 in number, would receive no payments.

However, the council anticipates that the union Unite is unlikely to accept this offer, which is significantly lower than last year’s rejected proposal and less than half the amount tentatively agreed between Labour and Unite before the May 7 election.

Controversy surrounds a disclosed contingency strategy to dismiss striking bin workers if negotiations fail. The report suggests that any dismissals might occur immediately after the May elections, before a new political administration takes office — a move condemned as an attack on local democracy and raised with incoming Labour leader and Prime Minister-in-waiting Andy Burnham.

Under the plan, 66 former Waste Recycling and Collection Officers, whose roles were eliminated in January 2025 sparking the dispute, would receive £3,000 each, while 91 Driver Team Leaders downgraded to Drivers would be offered £7,000 each. These 157 workers are part of the 253 still on strike when the report was drafted. Other striking or affected workers would get nothing. The total payment cost would be under £1 million.

However, any such payments could expose the council to new sex discrimination claims from other unions and employees, potentially costing another £26 million to £65 million.

Despite the risks, officers view this proposed settlement as the “least worst” option. The report states: “Having considered the financial costs, legal risks, operational implications and wider impact on the city, the value-for-money assessment supports proceeding with a tightly structured settlement of issued and credible claims.”

The report warns that if this approach fails, remaining options — including dismissal or continued reduced services and outsourcing — are unpalatable and require careful consideration.

Negotiations must be carefully structured to ensure payments are contingent on workers ending industrial action, returning to work, and settling all legal claims. The council must also be clear on the steps to take if Unite rejects the offer.

The council’s options have been assessed by commissioners, external auditors Grant Thornton, and legal specialists. The report also acknowledges that settlements could provoke legal challenges from unions like Unison and GMB over possible discrimination.

Neither Birmingham City Council nor Unite would comment on the settlement likelihood, citing the sensitivity of ongoing talks. However, Unite General Secretary Sharon Graham and Unison representatives have strongly criticized officers and commissioners over the leaked report’s contents.