EQUAL PAY: WHERE NEXT? - A REPORT OF THE DISCUSSIONS AND CONCLUSIONS FROM THE 2010 EQUAL PAY CONFERENCE, MARKING THE 40TH ANNIVERSARY OF THE EQUAL ...
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Equal Pay: Where Next? A report of the discussions and conclusions from the 2010 Equal Pay conference, marking the 40th anniversary of the Equal Pay Act www.fawcettsociety.org.uk
Fawcett Society
Foreword
Even though legislation on implementing including the Government, employers, trade unions,
equal pay has been in place for 40 years, the NGOs and the general public. For too long now,
gender pay gap in Britain remains among the the debate on equal pay has been stuck, with each
highest in the European Union. We still have a player seeing only one aspect of the multi‑faceted
shocking gender pay gap of 16.4% that hurts approach needed to move forward the agenda on
women, society and the economy. The gap equal pay. Ultimately, while the debate on equal
between women and men for full-time work is pay grinds on, women continue to be unlawfully
equivalent to men being paid all year round, while paid less than men for work of equal value.
women work for free after 2nd November.
The Equal Pay conference held on 28 May 2010
Women in the United Kingdom still earn and own sought to take stock of the recent debate on the
less than men. 64% of the lowest paid workers subject of equal pay and brought together all
are women, contributing not only to women’s the relevant players, including the Government,
poverty but to the poverty of their children1. employers, trade unions and NGOs in an
unprecedented effort to ask the all important
There are many reasons for why the gender question: ‘Equal Pay: Where Next?’
pay gap still exists. The reasons include
discrimination against women in the workplace, Prior to the Equal Pay conference, four think
women shouldering the burden of caring pieces relating to key aspects of the gender
responsibilities, outdated stereotypes about pay gap were produced. The pieces addressed
women and men’s worth at work, and more making the business case for equal pay; how
women in part-time and low paid jobs. structures and organisation of workplaces play
a part in the equal pay debate; the adequacy
Unless we take strong action now, our or inadequacy of the legislative framework
daughters and granddaughters will inherit underpinning equal pay; and prevailing
the ongoing struggle for equal pay. attitudes and culture surrounding equal pay.
Ensuring equal pay for future generations of women This report includes the main arguments from the
requires action from a wide range of players, think pieces, conclusions from the conference
2 1 Office for National Statistics, Annual Survey of Hours and Earnings (2009).
Equal Pay, Where Next?
workshops and the dialogue from the final panel Ceri Goddard, CEO of the Fawcett Society
session. It provides a record of the Equal Pay
conference to encourage action needed from
all of the different players to move forward the
agenda on equal pay. Only with commitment
from across the board and by implementing a
nuanced approach that considers employers, Dave Prentis, General Secretary of UNISON
employees, and trade unions, flexible working
practices, legislation and cultural change, can
we work effectively together to make a difference
for women, wider society and the economy.
We hope that in austere times, when women’s Sarah Veale CBE, Head of Equality and
economic equality is more important than ever, this Employment Rights at the TUC
report will stimulate renewed efforts for equal pay.
Dr Jean Irvine OBE, Business Commissioner for the
Equality and Human Rights Commission
Far left:
Ford sewing
machinists'
strike, 1984
3
Fawcett Society
Executive Summary
Forty years since the Equal Pay Act women are still, on The conference concluded with a final panel
average, paid a sixth less than men for full-time work2. session where workshop recommendations
were discussed and conference participants
This report contains the main discussions and were able to question panellists on the
recommendations of the ‘Equal Pay: Where subject of equal pay. The panellists were:
Next?’ conference held on 28th May 2010 to
mark the 40th anniversary of the Equal Pay Act • Lynne Featherstone MP, Under-
1970. The conference brought together speakers Secretary of State for Equalities
and representatives from across government,
business, unions, and the third sector to discuss • Dr Jean Irvine OBE, Business Commissioner for
the question: ‘Equal Pay: Where Next?’ the Equality and Human Rights Commission
The conference was hosted by the Fawcett Society, • Ceri Goddard, Chief Executive of the Fawcett Society
the TUC, the Equality & Human Rights Commission,
and UNISON. The day explored four key aspects • Dave Prentis, General Secretary of UNISON
of addressing the gender pay gap: making the
business case for equal pay; how structures and • Sarah Veale CBE, Head of Equality and
organisation of workplaces play a part in the equal Employment Rights at the TUC
pay debate; the adequacy or inadequacy of the
legislative framework underpinning equal pay; • Nora Senior, British Chambers of Commerce
and attitudes and culture surrounding equal pay. Board Member Chair, UK Regions
Prior to the conference four think pieces This report provides a summary of the Equal
relating to the aforementioned themes were Pay: Where Next? conference, capturing the
produced to stimulate discussion and proposals debate that took place during the discussion
for change. The think pieces were discussed workshops and final panel session. This report
in workshops by conference participants makes robust recommendations for bringing
and speakers. Based on these workshop business onside, addressing the design of the
discussions, recommendations were formed. workplace, reforming legislation on equal pay and
tackling attitudes and cultures that perpetuate
the myth that women deserve to be paid less.
The structure of this report mirrors the main
themes of the think pieces produced for the
conference, presenting the key arguments from
the four think pieces and highlighting workshop
recommendations and debate from the final panel
session on each theme. The report concludes with
a section detailing the main recommendations
for taking forward the agenda on equal pay.
4 2 Office for National Statistics, Annual Survey of Hours and Earnings (2009). Statistics based on men’s mean hourly earnings excluding overtime compared with
women’s mean hourly earnings excluding overtime.
Equal Pay, Where Next?
Top Line Recommendations Changing the way work is organised in order
to reflect a changing workforce landscape
This report makes some specific recommendations and to support equal pay measures
relating to the four areas explored at the ‘Equal
Pay: Where Next?’ conference. We recommend:
Establishing an effective business case for • Extending the right to request
uniformly implementing equal pay practices flexible working to all workers.
We recommend: • Raising awareness amongst employers that a
modern workplace should offer more than just
• Encouraging employers and trade unions who flexible working. It should include innovative
have implemented equal pay systems to publicise practice, such as, job-shares at senior levels and
what they have done and how they have gained ensuring that training opportunities for women
from it. Publishing examples of equal pay best working part-time/flexibly are made available.
practice in the private sector will debunk the
myth that equal pay ‘is bad for business’. • Highlighting to employers that maintaining
unsustainable work organisation structures
• Encouraging businesses to extend their that are increasingly out of kilter with the
budgetary perspective. A longer term view way people live today will cause tangible
will be more likely to show not only a more harm to the organisation in terms of lost
accurate financial picture, but also the productivity, lower morale, lower employee
harder-to-evaluate qualitative gains. loyalty and higher employee turnover.
• Connecting the positive effects for the whole • Involving trade unions to negotiate and
economy to arguments for closing the gender bargain for extending members’ opportunities
pay gap. For example reducing the gender for well paid, high quality work and to
pay gap would increase UK productivity while tackle inequalities within workplaces.
reducing financial dependency on the state; these
gains will benefit business and the economy.
Forty years since the Equal Pay Act women
are still, on average, paid a sixth less than
men for full-time work.
5
Fawcett Society
Improving the law to implement a Changing attitudes, beliefs and
framework that makes unequal pay stereotypes that perpetuate the
practices unlawful and holds gender pay gap
organisations to account We recommend:
We recommend:
• Working with schools to incorporate gender
• A root and branch review of equal pay law equality education in the relevant aspects of the
to ensure that it operates in the interests of National Curriculum, including explicit discussions
women and employers. The current legal about the gender pay gap and its causes.
framework is ineffective, does not deliver equal
pay and is wasteful of public resources. • Undertaking more public education work in order
to challenge stereotypical and limited ideas of
• A new equal pay framework that makes clear the women and men’s respective roles and abilities.
obligations on public and private employers to
tackle unequal pay; allows for women claiming • Raising young people’s awareness of the
equal pay cases to take representative action; gender pay gap and its consequences.
includes robust equal pay auditing obligations
and increases the powers and sanctions available
to employment tribunals and regulatory bodies.
• Implementing, in full, existing legislation such
as the Equality Act 2010 that encourages
workplaces to undertake and publish gender pay
audits, change attitudes, challenge stereotypes
and cultures that sustain unequal pay practices.
This would help dispel the myth that women
deserve to be both paid less and valued less than
men.
Action on all the above recommendations is needed as all play
an integral part in tackling the gender pay gap. The causes of the
pay gap are multiple, so a strategy is needed to address all the
barriers that sustain unequal pay practices. For example, changing
the law, challenging cultural norms or making the business case
alone will not give women the urgent change that is needed.
6
Equal Pay, Where Next?
Equal Pay,
why now?
The Equal Pay: Where Next? conference was The areas identified were:
unprecedented in bringing together speakers
and representatives from across business, trade • making the business case for equal pay.
unions, government and the third sector. The
conference marked the forty year anniversary • how structures and organisation of workplaces
of the enactment of the Equal Pay Act 1970 play a part in the equal pay debate.
and provided a stock check of what progress
has been made since, and identified ways for • the adequacy or inadequacy of the legislative
moving forward on the equal pay agenda. framework underpinning equal pay.
The conference was held by the Fawcett • attitudes and culture surrounding equal pay.
Society, the TUC, the Equality & Human Rights
Commission, and UNISON. The innovative Accordingly, four think pieces were produced,
conference design sought to promote collective each relating to one of the aforementioned
analysis of the issues to achieve some themes. The think pieces were written by
consensus and new ideas for a way forward. the Equality and Human Rights Commission
(EHRC); the TUC, Karen Monaghan, QC of
The conference brought together key stakeholders Matrix Chambers and the Fawcett Society.
and developed new ideas on the next steps for
businesses, trade unions, government and the The think pieces were discussed in four workshops
third sector in ensuring equal pay for women. by conference participants and speakers. Based on
these discussions, recommendations were formed.
This report is the end product of a process that
identified ways of moving forward on equal The recommendations from the workshops were
pay for women. This process began before the then relayed to a panel at the final session of the
conference, when four key areas were identified conference. Panellists were given the opportunity
as central to the debate on equal pay. to respond and highlight opportunities
Right:
Grunwick Dispute,
London, 1976
7
Fawcett Society
for working collaboratively when implementing The aim of the panel session was to identify
recommendations. The panel was chaired by key recommendations from the morning
Samira Ahmed of Channel 4 News and comprised: workshops, as well as exploring different
approaches to embedding gender equality
• Lynne Featherstone MP, Under- and equal pay practices across business, the
Secretary of State for Equalities third sector, government and trade unions.
• Dr Jean Irvine OBE, Business Commissioner for This report provides a record of the workshop
the Equality and Human Rights Commission recommendations and the discussion at the final
panel session, and concludes by making robust
• Ceri Goddard, Chief Executive recommendations for businesses, trade unions,
of the Fawcett Society the third sector and government to take forward
to ensure that equal pay for women is achieved.
• Dave Prentis, General Secretary of UNISON
This report signals the beginning of a new
• Sarah Veale CBE, Head of Equality and process; one that requires commitment from
Employment Rights at the TUC across business, the third sector, government
and trade unions to ensure that forty years after
• Nora Senior, British Chambers of Commerce the Equal Pay Act, women are paid equally.
Board Member Chair, UK Regions
Published on Equal Pay Day 2010, armed with
a new consensus on how to deliver equality
for women in the workplace, this report signals
the commitment across business, government,
trade unions and the voluntary sector to
champion the cause and end unequal pay.
8Equal Pay, Where Next?
The Business Case
“Firms that take equality seriously There is a need to change the culture around
and look at equal pay as a core ideal what is appropriate pay for men and women.
are those that are the more sustainable In order to change culture, it is important to
in the long-term” position the pursuit of equal pay above other
political, economic or business objectives
Dr. Jean Irvine OBE, and identify equal pay as a core objective for
Equality and Human Rights Commission business, as opposed to a mere add-on.
Key arguments from think piece Business and trade union leaders should initiate the
implementation of pay practices that treat men and
The think piece outlining the business case for women equally, but if this change is to be effective,
equal pay was written by Sheila Wild from the those leaders need to ensure that their decisions
Equality and Human Rights Commission (EHRC). influence the behaviours and decision-making
It provides a synopsis of the benefits to business of people lower down within the organisation.
of implementing equal pay. The think piece argues
that closing the gender pay gap is beneficial to The full think piece can be accessed at
the whole economy and to individual businesses. www.fawcettsociety.org.uk
The main arguments that the think Workshop conclusions
piece highlights include:
Rather than looking solely at the short‑term costs of
There is ample evidence that gender pay gaps providing equal pay, business needs to be encouraged
contribute to the UK’s lower productivity. In 2006 the to consider a long-term view of the benefits.
Women and Work Commission estimated that
removing the barriers to women working in Equal pay must be a core business objective above
occupations traditionally done by men and increasing and distinct from other political and economic
women’s labour market participation, could be worth objectives and should be reported on in a transparent
between £15 and £23 billion to the economy or 1.3 to way. Managers and trade union representatives
2 per cent of gross domestic product. would require support to ensure they have the
knowledge and skills to deliver on equal pay and
A levelling up of women’s earnings has the disseminate good practice within their organisations.
potential to bring gains to the Exchequer not
only in increased revenue from tax and national It is important to apply the law consistently,
insurance, but also through a reduction in target research to answer outstanding questions,
the payment of benefits and tax credits. and build better econometric models to make
the economic case even more effectively.
It is possible to infer from national statistics
that an average woman working full-time until However, all of these recommendations
retirement age would lose £361,000 in gross would require leadership from government,
earnings over the course of her working life. business, individual companies and across
Closing the gender pay gap would improve the business sectors to give companies confidence
financial wellbeing not only of women but also to address these issues effectively.
of their partners and children, and would reduce
the likelihood of women’s poverty in retirement.
9Fawcett Society
Key points from the panel What’s really stopping
businesses?
Nora Senior, a board member of the British
Chamber of Commerce (BCC) felt that current Whilst there was consensus across the
economic conditions may reduce the ability panel that business and industry will play
of many businesses to think “long-term”. Any an important role in ending the gender pay
recommendations on equal pay must consider gap, there were differences in opinion
the impact on small companies to ensure they about what level of responsibility business
do not prevent enterprises from getting off the should have.
ground or growing. Dr. Jean Irvine, Business
Commissioner for the EHRC, emphasised that Some business representatives argue
transparency is key. The EHRC has good evidence that greater regulation will increase the
documenting that when companies progress administrative burden on companies
in equal pay they see benefits such as greater who are already struggling. They also
motivation, staff loyalty and improved productivity.3 suggested that such measures would be
a punishment on businesses that may
Ceri Goddard argued that unequal pay reflects be progressing equal pay in other ways,
a larger inequality that is systemic in our society. through, for example, women’s mentoring
Another way to engage business in the equal schemes. Equal pay practitioners argue
pay agenda could be through framing it within that what really underlies business
the context of organisations’ Corporate Social concerns is the fear of legal action, should
Responsibility (CSR) policies. We must also an audit reveal unjustifiable differences
change the dominant narrative that equal pay in pay. However, case studies have
is “bad for business” so small businesses can shown that audits often provoke greater
see the benefits. It is not necessarily harder for trust and commitment by employees.
small businesses to implement equal pay for their
employees, but we may require more research The need to overcome this difference
into how to effectively lay out the business case. of views is central to moving
forward on achieving equal pay.
Lynne Featherstone MP and Under-Secretary
of State for Equalities stated that the equal pay
agenda is crucial and emphasised the importance
of making the case that equal pay is good for
business to propagate best practice. Equal
pay for women is not just a question of helping
women; it’s about making workplaces happier
and more equal. This goes beyond the singular
issue of equal pay towards creating flexible
working systems that give both men and women
the opportunity of a good worklife balance.
Far right:
Licia Ronzulli, MEP
at the European
Parliament
© Reuters / Vincent Kessler
10 3 Since the conference, the EHRC and the British Chambers of Commerce (BCC) have worked together on a joint venture to help small businesses deliver equal pay. We understand
that small businesses have particular needs and concerns around delivering equal pay, so we designed a guide to help them. The aim is to make it easier for businesses to fulfil their
legal obligations and understand the benefits of doing so. The guide can be found on the EHRC website. This is a good example of how organisations can come together to find
solutions for businesses that are keen to deliver equal pay but are unsure how to do it.Equal Pay, Where Next?
How Work
is Organised
“I think people assume flexible working In many organisations, large scale work
only benefits women who are returning organisation for better worklife integration is
from pregnancy or who are parents. not high on the agenda. This means that work
This is true and important, as currently organisation is often delegated to managers,
women do the lion share of child care. who deal with individual requests for flexible
But we need to make things change to working. The inherent weakness in this localised
reflect that more fathers want to take response is that it often depends on an individual
time to look after their children” manager’s attitude and beliefs. A higher-level
approach is required which looks at areas of
Sarah Veale CBE, TUC operation when considering work design.
Key arguments from think piece Organisations should be thinking about
sustainability and the potential impact of work
The think piece regarding the way work is intensification and long working hours on the
organised was written by Working Families. The long‑term viability of an organisation. Long hours
core arguments are that the current way of should not be the solution to badly designed
organising work is detrimental to closing the pay working practices. Good work organisation is
gap. This is in many ways because the focus is on ensuring that people have manageable workloads.
providing choices within the current systems, rather
than changing the systems themselves. Partnerships between trade unions and employers
can work to increase the choices that workers have
by encouraging a different approach to work.
The main arguments that the think
piece highlights include: Within set parameters, there must be an openness
to review what work actually entails, and how it can
Flexible working is now in the mainstream of best be done taking into account both the needs
employment practice but has flexible working of business and employees. This is goes beyond
changed how work is organised? In most flexible working at the individual level; it is about
organisations it has simply allowed some people to organisational flexibility to enable better working.
change the way they do their jobs. Fundamentally,
flexible working remains an accommodation for The full think piece can be accessed at
workers to deviate from the ‘standard’ working www.fawcettsociety.org.uk
pattern to suit their individual circumstances.
Although generous maternity incentives have
increased the number of women returners, their
performance on return to the workplace has not
been maximised. What has evolved, however, is
a workplace where less well paid, less well-trained
part-time jobs is the lot of mothers; employers
get a great deal out of employing thousands of
part-time women who will trade better pay and
career prospects for flexibility, even though they
are often over-qualified for their attained position.
11Fawcett Society
Workshop conclusions the ‘command and management control’ model.
We are prioritising how many hours people work
It is government’s responsibility to support changing at their desks, and how closely they work to
worklife organisation; this could include financial their job description, rather than assessing what
support for micro businesses, improved child care they deliver. There are now real opportunities for
provision, better social security and tax credit companies of all sizes to look at flexible working
systems and better incentives around work. practices, including both working from home
and remotely. In order for our public perceptions
to change, best-practice examples need to be
Employers also have a key role, for example
shared. Companies need support on how to put
by ensuring visibility of flexible working across
together a coherent strategy for defining work
organisations; by taking decisions on flexible
processes, performance and job evaluation and
working collectively amongst teams; by ensuring
involving professional bodies, such as the Chartered
that job evaluations are done regularly with
Institute of Personnel and Development (CIPD).
open dialogue about flexible working, including
making information available to managers.
Nora Senior, a board member of the British Chamber
The pressures of managing work and of Commerce (BCC), responded by highlighting that
family life, poor prospects of promotion and flexible working is something that most employers
progression in part-time work, and the lack would support. However, it must be context-specific.
of flexibility in workplaces, are often factors It is easier in some environments than in others,
that serve to widen the gender pay gap. but there are always solutions once you consider
the role of employees within their industry and the
constraints they are working within. Government
Key points from the panel support would be welcome within business,
especially through investment in technologies to
Dr. Jean Irvine, Business Commissioner for the enable remote and flexible working. It is important
EHRC, noted that, at the heart of the equal pay to give credit to those businesses who are already
challenge is the fact that work is still organised in working to support women into senior positions.
12Equal Pay, Where Next?
Sarah Veale, Head of Equality and Employment Rights individuals with their caring responsibilities is needed.
at the TUC, added to the discussion by stating that For example, women working flexibly should not
employers, business owners, and leaders in the public miss out on training that takes place on their days
sector must acknowledge that they want flexibility off and opportunities for career progression.
and appreciate its benefits. Third party intervention
is key, and some of the most inventive and The Chair questioned whether there are
successful flexible working systems are in unionised costs related to implementing flexible
workplaces, both in the private and public sectors. working practices for business.
Sarah Veale argued that flexible working does not Ceri Goddard noted that while one size does not
only benefit women. For example, more and more fit all, there are some principles that can always be
fathers acknowledge that sometimes it makes applied in small or large companies. Despite women’s
financial sense for women to go back to work. mass movement into the workforce over the last forty
Some fathers are also more prepared to stay at years, the workplace has not changed or caught up
home and be hands-on fathers. A cultural shift is with the changes to people’s lives. The economic
needed for employers to challenge assumptions crisis and resulting reduction of jobs have provided
that men should be those at work and in the most an opportunity to question what we value and how
senior positions. Sarah noted that government we structure our work lives. Government support
institutions such as the Equalities and Human Rights and leadership is key. Big shifts only occur when
Commission and Advisory, Conciliation and Arbitration either government realises the world has changed
Service (ACAS) are already considering questions and they need to keep up with that change or when
such as, “what is a job?” and “what is a job in your government takes the lead to secure change.
particular industry?”. It is critical that government
makes more use of the resources it already has.
Dave Prentis, General Secretary of UNISON, furthered
the discussion by stating that more consistency from
management and greater commitment to supporting
Left:
Public sector pay
campaign, 1979
13Fawcett Society
The Minister, Lynne Featherstone MP and Under- How work is organised
Secretary of State for Equalities, was asked
whether there is an appetite within government to The need for flexible working practices was
give more support for flexible working practices. an area of strong consensus across the
panel. It was agreed that responsibility for
The Minister stated that the Coalition Government increasing the opportunities for flexible
has already pledged in the Queen’s Speech working should be shared across
to extend the right to flexible working to all employers, employees and government,
employees, subject to consultation with business and it was also noted that unions are able
and others. Flexible working must also make to play a key role in developing innovative
our working patterns more amenable for men. practices.
This will acknowledge that men’s relationship
with their children is important and that they too Fundamentally, it was recognised that
may have caring responsibilities. Government if flexible and part‑time work are to be
should be examining the role of job sharing, successful in reducing the gender pay gap,
particularly across Whitehall, because government we must re-think how we understand what
practices reflect men in higher paid positions a ‘job’ is and what constitutes ‘full‑time
and women in lower paid positions. The Minister work’ as well as address the quality of
maintained the view that we need to put forward part‑time work available. As noted in the
an integrated approach to worklife balance think piece, the increase in flexible working
policies and practice within organisations, in does not constitute a fundamental shift in
order to create whole organisational change. working patterns, but an ‘accommodation’
by which workers may deviate from
standard working patterns. Because of
this, the worklife balance agenda is not
integrated into standard working practices,
leaving team managers in control of
decision-making regarding flexible working
practices. Good practice at this level
may not impact on organisational culture
if there is no leadership from above.
The panel agreed that flexible working
had limitations in certain workplaces,
but also that flexible working was only
one answer to changing how work is
organised. A holistic approach is needed
in order to shift outdated notions of work.
14Equal Pay, Where Next?
The legislative
framework for equal pay
“Women have a legal right to equal pay. The Equality Act 2010, the majority of which has
We have had the act for 40 years and we recently been implemented, regrettably enforces
always get arguments [saying] “it’s not measures addressing inequality in pay which are
the right time” but...when is the time similar to those in the Equal Pay Act 1970. It puts
right? When will this happen unless we the responsibility on the woman bringing forward
grasp the nettle now?” a claim to undertake the role of investigator, legal
champion and enforcer. The Equal Pay Act also
Dave Prentis, UNISON requires a male comparator employed in the same
employment against whose pay the women’s pay
Key arguments from think piece can be measured4.
The think piece regarding the legislative framework The Equality Act does not enforce mandatory
was written by Karon Monaghan, QC of Matrix pay audits to ensure that employers are reporting
Chambers, and provided a synopsis of past and on their gender pay gap and does not allow for
present legislation on equal pay. The think piece representative action claims, which would allow
situates the issue of equal pay in the wider context individuals collectively affected by systematic pay
of human rights. The premise of this piece is that discrimination to make a claim as a group.
gender equality is universally recognized as one of
the most important and fundamental human rights. Reforming equal pay law requires transparency,
Accordingly, women’s unequal pay should be the introduction of hypothetical comparators to
considered within a broader context of inequality address job segregation and job stereotyping;
and as a breach of human rights. the introduction of awards of compensation to
women and the enforcement of punitive measures
on employers failing to comply; and must include
The main arguments that the think robust pay auditing obligations for employers.
piece highlights include:
The full think piece can be accessed at
The Equal Pay Act 1970 has not proved successful www.fawcettsociety.org.uk
in achieving the aim of closing the gender pay
gap. It adopted a remedial model which allows
employers to backdate pay or contractual
damages to women who successfully win a claim.
However, it does not place punitive measures on
employers failing to comply with the law and offers
no compensation, beyond the pay adjustment, to
women who have successfully won their claim.
The Equal Pay Act fails to address structural
inequalities such as gender stereotyping in schools,
occupational segregation, women’s disproportionate
share of caring responsibilities and women’s patterns
of work which are more likely to be interrupted by
child care and other responsibilities and are more
likely to be punctuated by part-time work.
4 There is some provision for using a hypothetical comparator but only with regard to claims on the grounds of direct discrimination. 15Fawcett Society
Workshop conclusions Sarah Veale, Head of Equality and Employment
Rights at the TUC, highlighted how society can, and
The workshop on the legislative framework should be flexible and imaginative about processes
highlights that the practice of unequal pay is an for equal pay for different types of business.
abuse of human rights and an affront on women’s Women in small firms should not be considered
dignity. The current law around unequal pay as second class citizens in terms of employee
does not recognise structural forces such as rights. Not giving women in small businesses the
occupational segregation and gender stereotyping same right to equal pay as those in big businesses
and the overwhelming caring responsibilities that would be inequitable, and in the long‑term,
women have in reiterating unequal pay practices. detrimental to society and business itself.
Participants felt that the current legal framework From a business perspective, Nora Senior, a board
is ineffective, does not deliver equal pay and is member of the British Chamber of Commerce (BCC),
wasteful of both public and court resources. They argued that small businesses do not always have the
concluded all political parties should commit administrative support to deal with extra reporting.
to a root and branch review of equal pay law Businesses do want to change and it’s often the
to ensure that it operates in the interests of smallest businesses that are more likely to try and
women, of employers and the legal process. redress the balance. Nora emphasised the need for
a simple template rolled out through organisations,
It was also noted that there is a lack of knowledge like the British Chambers of Commerce, which
about pay practices, particularly in the private would support small businesses in providing the
sector which sustains unequal pay structures. information needed rather than castigating smaller
Redressing this inequality requires action from businesses by overburdening them with legislation.
the Coalition Government, including an indication
of what it will do to implement the gender pay Dr. Jean Irvine, Business Commissioner for the EHRC,
reporting requirement in the Equality Act 2010. explained that after wide-ranging consultations with
businesses, the CBI and TUC, the EHRC published
voluntary gender pay reporting metrics on its website
Key points from the panel and is now drafting guidance. The EHRC would
be keen to talk to business representatives about
The Minister committed to pressing how to extend this work to smaller businesses.
the case for equal pay, highlighting that More transparent processes are needed to ensure
transparency is integral to this process. organisations can compare themselves with
their peers, particularly on a sectoral basis.
Dave Prentis, General Secretary at UNISON,
stated that he felt that the Equality Act 2010 which Sarah Veale, Head of Equality and Employment
came into force on October 1st does not go far Rights at the TUC, emphasised that the Equality
enough in securing equal pay for women. UNISON Act has not changed the contractual basis for
supports the recommendation of gender pay equal pay law in the UK; sex discrimination and
reporting and will continue to press the Coalition equal pay are treated differently in statute which
Government on mandatory pay audits which are makes it harder to use the law to address unequal
a key means by which we will achieve equal pay. pay. Until we address this division, it will be hard
to close the gender pay gap. She also felt it is
important to be honest about why employers shy
away from mandatory auditing; specifically, if they
16Equal Pay, Where Next?
do uncover systemic unequal pay, then employers Human Rights and Equal Pay
would be obliged to change this practice which – examining the bigger picture
could result in short‑term costs for their business.
The discussion on the legislative framework
Both trade union representatives raised concerns for equal pay explored a variety of topics.
about the lack of a representative action remedy, Given the current lack of progress on
which allows individuals collectively affected by closing the gender pay gap, it is apparent
systematic pay discrimination to make a claim that legislation alone is not working. The
as a group. Sarah Veale argued that the reason essence of this debate concerned the idea
representative action has become central is because that the current legislative framework is
without it, equal pay is individualised – attached to not enough to end the gender pay gap,
contracts and removed from individual rights within because the conceptualisation of equal
pay systems. As long as employment tribunals only pay in current legislation is inadequate.
deal individually with cases, it will be hard to get a A holistic and human rights‑based
systemic solution. The TUC would encourage the approach is needed to link gender
Coalition Government to allow representative action. discrimination with pay discrimination and
Tribunals compensate people for breaches of law but to help set out the case to businesses.
they do not actually change workplace systems.
On the other hand, there was some
The Minister said that she had argued strongly for significant contention over whether
representative action in debates on the Equality gender pay audits should be made
Act and that government would continue to mandatory. Business representatives
encourage voluntary pay disclosure and she was argued vigorously against the case for
committed to greater transparency in pay. more legislation on equal pay, arguing
that the tools were already there and
just needed to be used properly.
Others argued that without mandatory
audits businesses would continue to
shirk responsibility for equal pay.
Left:
International
Women's Year Rally,
London, 1975
17Fawcett Society
Attitudes and Culture
around Equal Pay
“Unequal pay in some ways is the product Efforts to effect change should be focused around
of wider cultural beliefs and the fact that three key areas. They include addressing and
we still value women less than men” preventing misconceptions and stereotypes formed
in children and young people from an early age;
Ceri Goddard, Fawcett Society. raising public awareness of gender inequality and
tackling stereotyping; and indirect interventions by
Key arguments from think piece employers to tackle negative attitudes and beliefs
and support positive ones.
The think piece written on changing attitudes,
beliefs and stereotypes that perpetuate the gender The full think piece can be accessed at
pay gap was written by the Fawcett Society. It www.fawcettsociety.org.uk
examines the relationship between attitudes, beliefs
and stereotypes around women’s worth in the
workplace and the gender pay gap. This think piece Workshop conclusions
identifies strategies for changing attitudes and
challenging stereotypes around women and work. The workshop focused on education as a key
driver in addressing and preventing misconceptions
and stereotypes formed in children and young
The main arguments that the think people. Discussions emphasised the need to
piece highlights include: inform children from an early age of their rights
through education, so that women’s rights
There are converging causes of the gender pay gap and gender equality are embedded early.
all of which are affected in some way by attitudes
and cultural beliefs about the respective roles and Participants at the workshop discussed the
value of men and women. They include life time importance of the case for equal pay to be raised
working patterns of women, such as time out for through public awareness. Ideas included making
caring and the reality of more women being in equal pay part of popular culture by way of
part-time work; occupational segregation between incorporating it into a storyline on Eastenders, for
women and men; unequal access to opportunities example. It was agreed that the issue of equal pay
in education; and direct and indirect discrimination has to become a part of the public consciousness,
against women in the workplace. which at the moment it is not.
Challenging negative attitudes and stereotypes that We need more openness about the existence of pay
prevent women from achieving equal pay is discrimination in the workplace; equal pay audits
perhaps more complex than legislative change but could go some way to address this problem.
it is clear that without it, women will not achieve Employers could contribute to awareness raising by
economic equality. demonstrating the positive effects of equal pay, i.e.
that an employer will have productive, happier, more
Employers have a role to shape workplace cultures satisfied workers as a result of paying them equally.
and in-so-doing have a significant influence on
progressing change action in both the wider public
sphere and in workplaces.
18Equal Pay, Where Next?
Key points from the panel
Dr. Jean Irvine, Business Commissioner for the
Ceri Goddard, Chief Executive of the Fawcett EHRC, presented the view that provisions in the
Society, began by arguing the need to step outside Equality Act provide safeguards for individuals
the usual, narrow conception of the equal pay in businesses, whose contracts of employment
debate in order to understand its wider cultural include secrecy clauses around pay. The Act
context and the way in which we value women will render such clauses unenforceable, thereby
and men in our society. There is a link between encouraging greater openness and transparency.
unequal pay and the wider social, structural The EHRC are working with the Government
and cultural inequality that exists between men Equalities Office on a national equality framework
and women. Education and schools are critical for business which will aim to raise standards
in teaching young boys and girls about gender of equality practice across British business.
equality and the gender pay gap. This type of On top of this, the National Curriculum should
public education – the type of shift in attitude that inform young people about gender inequalities
we need – would need to be led by government. that perpetuate the practice of unequal pay.
Nora Senior, of the British Chamber of Commerce
(BCC), agreed that education and public
awareness raising are an important part of
addressing the subject of equal pay. Both large
and small businesses must understand why
there should be diversity in the workplace.
However, we should not penalise the whole
business population for the sins of a few.
Government is already introducing a number
of payroll and legislative measures which are
going to cost business over £25.5 billion pounds
between 2010 and 2014. So, it is important that
the equal pay agenda is moved forward at a rate
that business can actually sustain and cope with.
The Minister was asked whether the absence of
women in the General Election campaign and
negotiations that followed, has marked a huge
appetite for change in terms of redressing the
women’s inequalities in public life, including the
unequal pay of women. The Minister suggested
that the establishment of a parliamentary
working group on women could be incredibly
fruitful in changing attitudes around equal pay.
Instigating cultural and behavioural change
can be a difficult process which requires both
legislation and greater public awareness.
19Fawcett Society
Sarah Veale, Head of Equality and Employment How can we shift attitudes and
Rights at the TUC, echoed the notion that change culture around equal pay?
education is key, but raised a concern that despite
huge efforts through the National Curriculum and
careers advice to persuade more girls to go into There was consensus across the panel that
the higher paid jobs, it is difficult to overcome peer culture is hugely important in the formation
pressure. To shift perceptions, public awareness of public opinion around equal pay.
is important. Children, and particularly teenagers,
are very influenced by popular culture – who Education is key to ensuring that boys
people see on television, who girls see as role and girls learn about gender equality from
models, what they see a woman being able to do an early age. This would help to prevent
that they previously would never have expected stereotypes about women and men’s worth
a woman to do. Legislation is not just about in the workplace forming at a later stage.
forcing people to do things through the law, it
has a reflexive effect: it gives an indication of a Other measures to change attitudes
direction of travel that’s acceptable and desirable. around equal pay include raising the profile
of the issue in public consciousness.
Dave Prentis, from UNISON, noted that education Although anti-discrimination legislation
should tackle inherent discrimination within our exists, this alone does not prevent the
society. This includes ensuring that schools talk persistence of the gender pay gap. A
about dignity and respect and that diversity is targeted public awareness campaign, led
accepted within the school environment, so that by government, could raise the profile of
when children become adults and go to work and the issue of equal pay and would go some
become part of our society, they can tackle the way to changing culture and attitudes,
discrimination that currently exists. The gender whilst supporting existing legislation.
pay gap is only one part of that discrimination
that we have to tackle across our society.
20Equal Pay: Where Next?
Conclusions and
Recommendations
This report makes some specific recommendations • Raising awareness amongst employers that a
relating to the four areas explored at the modern workplace should offer more than just
‘Equal Pay: Where Next?’ conference. flexible working. It should include innovative
practice, such as, job-shares at senior levels and
ensuring that training opportunities for women
Establishing an effective business case for working part-time/flexibly are made available.
uniformly implementing equal pay practices
• Highlighting to employers that maintaining
We recommend: unsustainable work organisation structures
that are increasingly out of kilter with the
way people live today will cause tangible
• Encouraging employers and trade unions who harm to the organisation in terms of lost
have implemented equal pay systems to publicise productivity, lower morale, lower employee
what they have done and how they have gained loyalty and higher employee turnover.
from it. Publishing examples of equal pay best
practice in the private sector will debunk the • Involving trade unions to negotiate and
myth that equal pay ‘is bad for business’. bargain for extending members’ opportunities
for well paid, high quality work and to
• Encouraging businesses to extend their tackle inequalities within workplaces.
budgetary perspective. A longer term view
will be more likely to show not only a more
accurate financial picture, but also the Improving the law to implement a framework
harder-to-evaluate qualitative gains. that makes unequal pay practices unlawful
and holds organisations to account
• Connecting the positive effects for the whole
economy to arguments for closing the gender We recommend:
pay gap. For example reducing the gender
pay gap would increase UK productivity while
reducing financial dependency on the state; these • A root and branch review of equal pay law
gains will benefit business and the economy. to ensure that it operates in the interests of
women and employers. The current legal
framework is ineffective, does not deliver equal
Changing the way work is organised in order pay and is wasteful of public resources.
to reflect a changing workforce landscape
and to support equal pay measures • A new equal pay framework that makes clear the
obligations on public and private employers to
We recommend: tackle unequal pay; allows for women claiming
equal pay cases to take representative action;
includes robust equal pay auditing obligations
• Extending the right to request and increase the powers and sanctions available
flexible working to all workers. to employment tribunals and regulatory bodies.
21Fawcett Society
• Implementing, in full, existing legislation such This joint initiative has succeeded in achieving a
as the Equality Act 2010 that encourages shared vision of the way forward on equal pay. A
workplaces to undertake and publish gender combination of legislative, policy and campaigning
pay audits, change attitudes, challenge action needs to be enacted in order to end
stereotypes and cultures that sustain persistent pay inequalities. These contribute to
unequal pay practices. This would help women’s poverty, an imbalance in employment
dispel the myth that women deserve to be opportunities, and women’s disproportionate
both paid less and valued less than men. share of caring responsibilities, which often limits
their choices and progression in the workplace.
Changing attitudes, beliefs and stereotypes On Equal Pay Day 2010, armed with a new
that perpetuate the gender pay gap consensus on how to deliver equality for
women in the workplace, this report signals
We recommend: the commitment across business, trade
unions, government and the voluntary sector to
• Working with schools to incorporate gender champion the cause and end unequal pay.
equality education in the relevant aspects of the
National Curriculum, including explicit discussions
about the gender pay gap and its causes.
• Undertaking more public education work in order
to challenge stereotypical and limited ideas of
women and men’s respective roles and abilities.
• Raising young people’s awareness of the
gender pay gap and its consequences.
Action on all the above recommendations is needed as all play
an integral part in tackling the gender pay gap. The causes of the
pay gap are multiple, so a strategy is needed to address all the
barriers that sustain unequal pay practices. For example, changing
the law, challenging cultural norms or making the business case
alone, will not give women the urgent change that is needed.
22Designed by www.strudel.co.uk
Fawcett 1-3 Berry Street London EC1V 0AA Tel: 020 7253 2598 Fax: 020 7253 2599 www.fawcettsociety.org.uk Fawcett is the UK’s leading campaign for equality between women and men. We trace our roots back to 1866, when Millicent Garrett Fawcett began her lifetime’s work leading the peaceful campaign for women’s votes.
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