A LANDMARK equal pay case that has awarded 25 low-paid female workers almost £100,000 could pave the way for thousands more North-East council staff to sue their employers.

There were claims last night that any resulting action could cost one North-East council as much as £12m and posed a "significant risk" to council taxpayers.

After a three-year legal battle, the 25 Durham County Council staff were awarded the compensation at a tribunal in Newcastle.

The women, who were all paid less than their male equivalents, had refused their portion of a compensation deal that Durham County Council shared between almost 5,000 workers in 2005.

Instead of accepting the money that was offered to them, the women, who were represented by specialist equal-pay lawyer Stefan Cross, took the case to a tribunal.

Last month, they were each awarded much more than they were originally offered in 2005.

Now Mr Cross' sister company, Action 4 Equality, is campaigning for the 5,000 workers who accepted Durham's compensation in 2005 to sue the authority again and, in a new twist, to sue their trade unions for urging them to accept the original compensation offer.

Stuart Hill, of Action 4 Equality, said: "The potential is staggering.

"These 25 women didn't believe what they were being told. They are detonators of a huge explosion.

"Their colleagues who accepted the compensation will be so angry when they find out. It could cost Durham County Council another £12m."

In February 2005, Durham County Council set aside £12m for compensation to be paid that year and a further £8m for future years.

Last night, council treasurer Stuart Crowe said: "We have reached a settlement with the 25 women who opted out of the collective agreement as we were instructed to do by an employment tribunal.

"We are currently negotiating with the employees and their trade union representatives to establish a fair level of pay, backdated to April 1, 2005.

"The county council has made financial provision for this within its budget, but it still poses a significant risk for the council and council taxpayers."

One of the group of 25 women, a 55-year-old school cleaner from Horden, who did not want to be named, said: "I was offered £70 and I said no. Now I have won £3,000. I was jumping for joy. It will make a real difference to my life."

However, Durham County Council leader Albert Nugent fears this latest ruling could be a jobs timebomb in the future.

He said: "In the short term it may be okay, but in the long term it could cost jobs. It could be a catastrophe for the workforce.

"It could affect pensions and working conditions and it could drive people into the private sector, which doesn't pay as well or offer such good conditions as a local authority."

Law firm Stefan Cross, in Newcastle, specialises in fighting councils over equal pay. Since it was set up about five years ago, the firm has collected thousands of cases against every council in the North-East and many others throughout the country.

It represents 35,000 clients who are fighting equal pay cases, plus 2,500 clients suing their unions for negligence, and 8,000 with sexual discrimination cases.

In the past few years, Mr Cross has represented hundreds of workers in Middlesbrough, Redcar and Cleveland, Darlington, Stockton and Hartlepool.

Last year, he represented 100 Middlesbrough Council workers who had accepted a deal from the council over equal pay.

A tribunal ruled against the GMB union, which had advised the women to accept a settlement.

It left the union facing a £1m bill. The GMB has pledged to appeal against the decision.

Mr Cross is also helping hundreds of female workers sue Sunderland Council for equal pay.

Sunderland South MP Chris Mullin has said the claim could cause "financial meltdown" and could cost taxpayers £50m.

Mr Nugent, a former trade unionist, said: "Although he may think the unions and the county council haven't treated its workers right, I don't think he is treating them right."