Equal pay crusade heats up

To mark the 40th anniversary of the Equal Pay Act, the Equality and Human Rights Commission (EHRC) has called on organisations to do more to close the pay gap between male and female employees.

Forty years on, the commission reports that women working full time are still being paid on average 16.4% less than men.

In some sectors, the pay gap is significantly higher. In the banking and finance sector, for example, women working full-time earn up to 55% less of the annual average gross salary of their male colleagues.

The commission’s research attributes the continuing existence of the pay gap to a number of factors. These include stereotyping about women’s capabilities and skills, women bearing the brunt of caring responsibilities, and discriminatory pay systems.

Commissioner Jean Irvine has called on employers to introduce pay systems that are both transparent and fair.

“Most employers should be able to measure their own pay gap, particularly those with combined payroll and human resource systems,” Irvine said. “They should also be able to take steps to resolve it, including offering flexible parental leave.”

The EHRC says that the rewards are well documented for the businesses that do link equal work to equal pay with boosts in workplace productivity and a good business reputation.

But Irvine warned that when the voluntary approach fails, the EHRC will use its enforcement powers to address any persistent and significant problems.