Glasgow City Council has said it will halt a firing and rehiring process for 23,000 staff after talks with unions and the Scottish Government.

The council announced on Friday evening that it had reached an understanding after discussions.

On Thursday, the local authority said talks to resolve a long-running equal pay dispute with the Unite, GMB and Unison unions had broken down.

It said that in order to end the current pay arrangements, all non-teaching staff would be dismissed and rehired under new contracts, which would take effect from January 1.

Workforce convener Councillor Allan Casey said: “I’m pleased that we’ve reached a position following a meeting with the Scottish Government and the three unions where a pause has been agreed, allowing the Acas package to be put back on the table and creating the space for further intensive negotiations with the joint trade unions.

“Our goal remains clear: to secure collective agreement on a new pay and grading scheme that is free from discrimination and can be put to the workforce in a ballot.

“Both I and the wider council leadership remain fully committed to working with trade unions and staff to deliver a fairer and more sustainable pay structure for the future.”

In response, a STUC spokesperson, on behalf of unions Unite, Unison and GMB, said: “We are pleased at the lifting of the threat of fire and rehire and that meaningful negotiations will take place next week.

“We also welcome the Scottish Government’s clear statement that the practice of fire and rehire does not align with the principles and expected practice of fair work.”

Deputy First Minister Jenny Gilruth said she was ‘pleased’ at the pause (Robert Perry/PA)

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Deputy First Minister Jenny Gilruth added: “I am pleased that Glasgow City Council has agreed to pause the process of dismissing staff so that all partners can get back around the table for intensive negotiations to focus on bringing a resolution to this dispute.

“Given the significance of this situation and the impact on staff, I wanted to bring all parties together to make clear that I expect negotiations between the council and unions to continue so that a collective agreement can be reached and bring an end to discriminatory pay practices.

“My expectation is that all parties act in line with the principles of fair work and continue to exhaust all avenues for collective agreement.

“The Scottish Government opposes the inappropriate use of fire and rehire and our position is that such a practice does not align with the principles and expected practice of fair work.”

Susan Fitzgerald Unite Scottish Secretary said: “Unite welcomes the Scottish Government’s intervention convening talks involving all relevant parties at Glasgow city council.

“Unite was crystal clear that the scandalous fire and rehire threat facing workers had to be lifted in order for meaningful talks to resume.

“The immediate threat has now been lifted, and that it is a welcome development, but it should never have escalated to this unacceptable and highly regrettable stage. Talks will reconvene next week on the outstanding issues with a view to finding a breakthrough.”