BT targets pay gap

British Telecom has agreed to put an extra half a million pounds into this year's pay deal for managerial and professional staff, as a step towards eradicating the equal pay gap. This follows a £1 million allocation for the same reason last year.

BT managers' union Connect has exposed pay inequalities at BT in a series of union surveys over the last 10 years. Assistant secretary Aveen McHugh told Labour Research: "We welcome this move. While it's not enough to bridge the gender pay gap completely, it is quite a significant step, and keeps the issue on the agenda". An agreed review of the pay structure will address the underlying problems in the longer term.

The extra money put aside at BT is to be used to make additional awards, after the main 2002 pay settlement has been implemented. These will be targeted at "women or men whose pay is significantly less than peers with a similar level of competence and performance". The move follows improved pay on promotion arrangements agreed earlier this year.

In a submission to the Equal Opportunities Commission's Equal Pay Task Force, Connect identified promotion systems that reflect the lower pay levels of women workers as one of a range of factors contributing to the continuing pay gap.

Other sources of inequality include job segregation, the use of 'market' pay data, performance appraisal, lack of progression through long pay ranges, and bonus payments based on a percentage of base salary.