Outsourcing 'could widen gender pay gap'

2 Nov 10
Pressure on public bodies to outsource services to the private sector could exacerbate the pay gap between men and women, campaigners and trade unions have warned.

By Mark Smulian

2 November 2010

Pressure on public bodies to outsource services to the private sector could exacerbate the pay gap between men and women, campaigners and trade unions have warned.

A report Equal pay –where next? has been issued today by the Fawcett Society together with the Equality and Human Rights Commission and the Trades Union Congress to mark Equal Pay Day 2010. It says pay inequality is worse in private firms than in the public sector.

Fawcett Society chief executive Ceri Goddard said: ‘With job losses in the public sector and spending cuts already threatening women’s overall economic independence, robust action on equal pay is more not less important.’

Unison general secretary Dave Prentis branded continuing pay inequality ‘an utter disgrace’ and said women relied disproportionately on public sector jobs, which would be lost through spending cuts.

Jean Irvine, a commissioner at the EHRC, said: ‘We must seek innovative ways to increase transparency, look at what role the law can play and explore where culture change can make a difference. This report is an important contribution to the debate, for the first time bringing together key players – ranging from business to unions – to discuss and debate ways forward’

The report calls for more use of flexible working and job sharing, clear obligations on employers to tackle unequal pay and powers for trade unions to take class actions in court against unequal pay.

Meanwhile, the Third Sector Research Centre has said that voluntary bodies offer women better pay and job prospects than either the public or private sectors.

In a report titled Women’s’ leadership, employment and participation in the third sector and social enterprises, it said women made up 67% of the third sector workforce, 64% in the public sector and 40% in the private sector.

Women occupied half of senior posts in the third sector, 46% in the public sector and only 24% in the private sector.

The pay gap ‘almost disappears’ at senior levels in the third sector, and was lower overall.

Report author Steve McKay said: ‘It is encouraging that the third sector, while small, seems to provide opportunities for women to advance to management positions.’

 

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