1st May 2009
By Vivienne Russell
Measures included in the Equality Bill to close the 23% gender pay gap do not go far enough, trade unions have warned.
The Bill, published on April 27, requires public sector bodies with more than 150 employees to report on gender pay, as well as other equality data, such as the numbers of ethnic minority and disabled staff. Details of what this will mean in practice and how it will operate will be consulted on over the summer.
The Bill also includes a power to require private sector employers with 250 or more staff to report on their gender pay gap. However, ministers have pledged not to invoke this before 2013, in an effort to encourage employers to report voluntarily.
Unions and equality campaigners had called for compulsory pay audits to be included in the Bill. These would be thorough exercises involving analyses of the value of work performed by men and women, as well as reports on differential pay rates.
Liane Venner, head of membership participation at public service union Unison, told Public Finance: ‘Our concern generally is you need full pay audits and [the Bill’s provisions] don’t go nearly far enough.’
Brendan Barber, general secretary of the Trades Union Congress, said: ‘We are disappointed that the government has fallen short of taking bolder steps to close the pay gap, particularly in the private sector.’
The Bill puts much of the responsibility for driving through the equality programme on the public sector. Public bodies are to be placed under a duty to consider what action they can take to reduce socioeconomic inequalities, such as targeting health advice at deprived areas.
Equality Minister Harriet Harman said: ‘We know that inequality is grounded not just in gender, race, disability, age and sexual orientation but also by class – your family or the place you were born. So we will require public bodies, when they make strategic decisions, to help narrow the gap between rich and poor.’
The Bill also makes it clear that public bodies should use their buying power to secure greater equality, contracting only with those companies that have good equality practices.
