Equal pay

New Equal Pay Initiatives: Good, but Not Good Enough

Nicky Morgan, Minister for Women and Equalities, has announced she is introducing “a raft of measures to support women in their careers from the classroom to the boardroom, leaving nowhere for gender inequality to hide.”

These measures, which will have little effect on small businesses as yet, include initiatives to address pay inequality. Although they were welcomed by Woman’s Equality Party leader Sophie Equal payWalker, she warned there is still “too little ambition in the government’s approach,” and feels the measures add little to the government’s previous pledges: “It is shocking that we are still talking about the gender pay gap, 45 years after the Equal Pay Act was passed.”

Labour’s Kate Green, Shadow Spokesperson for Women and Equalities, agrees – and says that far from leaving nowhere for gender inequality to hide, it is the policies of Nicky Morgan’s government “that have consistently worsened and entrenched economic inequality for women.”

Gender Equality League Tables

One of the measures announced was new legislation to force companies with 250 employees or more to produce gender-specific data on average pay, bonuses and employee numbers at each pay grade. This data will be used in ‘league tables’ designed to name and shame companies with large gender gaps.

“Publishing league tables will drive diversity, bringing benefits not just to women but to business,” said Ann Francke, Chief Executive of the Chartered Management Institute. “Closing the pay gap will open the talent pipeline, increase management quality and boost productivity.”

However, while Sophie Walker welcomed the measure and the government’s intention to address gender inequality, it is too little too late for her.

“Introducing gender pay league tables in 2018 means we will have to wait another two years [to] see only a little bit of what’s going on inside Britain’s companies,” she said. “WE have a clear plan that requires immediate action from companies to show full transparency on pay, status and hours worked – plus retention before and after parental leave – and to break that data down not only by gender but also ethnicity and disability.”

Kate Green agrees: “2018 is far too long for women to wait when the UK gender pay gap remains well above the EU average. At this rate it will be another 47 years until the gap is closed, so we haven’t a moment to lose. The Tory Government’s approach simply isn’t good enough for women.”

STEM Initiative Misses the Point

Sophie Walker is also disappointed by the government’s aim to have 15,000 more girls studying maths and sciences by 2020.

“Girls already outnumber and outperform boys in STEM subjects at GCSE level, so making sure they can access more of the five million STEM jobs across the UK shouldn’t be too difficult. When I met with the Minister last year, I explained how vital the need was to break down gendered expectations around STEM careers… she must be much more robust in setting out measures to make sure this happens.”

However, Nicky Morgan’s figures show that at A level, when students begin to specialise and focus on the subjects they need for entry into their chosen degrees and careers, just 24% of girls’ entries to A levels are in maths and sciences compared to nearly 40% of boys’ entries – so there is still a gender gap in STEM subjects uptake.

Time to Be Bolder

Kate Green sees equal pay just the tip of the iceberg. “81 per cent of savings through tax and benefit changes since 2010 have come from women, maternity discrimination is out of control on the Government’s watch and domestic violence and rape crisis centres have closed across the country because of a lack of long term, sustainable funding. While the measures announced today go some way to address the UK’s gender pay gap, these announcements fight against a tide of Tory policies which are hitting women hardest.”

Sophie Walker shares Kate’s desire for greater progress and also sees equal pay as part of a bigger issue. “It is time to be much bolder,” she says. “WE are the only party with a comprehensive set of plans to tackle ALL the causes of women’s unequal pay by proposing employer transparency, equal parenting leave, flexible working, stronger anti-discrimination processes and help for carers who wish to work.”

The Future of Gender Equality

It remains to be seen whether the threat of league table exposure will force larger companies to address gender imbalances in their workforce – and whether the government extend the legislation to smaller companies. If it does, will your business be ready? How equality conscious are you?

It may be best to get ahead of the game and consider these issues now.