The pay gap between men and women is wider than official figures suggest, according to a new report.
Research by Payfinder.com finds that men earn an average 24 per cent more than women, compared to the 19 per cent figure usually quoted.
Forum Response: Chartered Institute of Personnel and Development
John Philpott, chief economist, said: "Independent pay surveys should always be treated with caution. The annual New Earnings Survey (NES) remains the most respected measure of the gender pay gap and should remain the main reference source for policy debate given its careful attention to comparing the earnings of full time workers only. Nonetheless the 19 per cent gap still identified by the NES is obviously an ongoing concern.
"Most observers accept that around three quarters of the gap is due to differences in the patterns of employment between men and women.
"However, while direct pay discrimination – where an employer pays a women less than a man even though she is as effective a worker doing the same job - is not found to be a major factor, differences in employment patterns can themselves reflect unequal opportunities.
"Women’s employment is highly concentrated by occupation – almost two-thirds of women work in 10 service related occupations, mostly performing admin, secretarial or caring roles - and such ‘women’s jobs’ tend to be poorly paid. The reasons for this are partly social, partly economic.
"Women’s role as the primary carer in most households limits their occupational choices, lifetime work experience, and/or their ability to commute to where the best jobs are.
"Society in turn tends to undervalue ‘feminised’ occupations relative to those that men dominate – and because of limited opportunity women crowd into these occupations, depressing pay rates still further. Moreover, in all occupations, job grading and appraisal systems are found to undervalue women’s contribution both in terms of pay and status resulting in a form of indirect discrimination. So wherever one looks – feminised occupations included – women trail men in the pay stakes.
"There is some good news on the horizon for women however in that the supply and demand side of the UK labour market seem to be shifting in women’s favour. Related CIPD research also shows that one in five employers had carried out an EPA in the five years to 2002, one quarter had carried them out in 2003 and another half will undertake one this year.
"The CIPD is not persuaded therefore that a compulsory pay audit is the most effective way of dealing with the pay gap as this would amount to a tick-box exercise among businesses and not tackle the wider causes of pay differentials.
"Instead, the CIPD is pushing organisations to adopt transparent and understandable pay systems and is calling on employers to make the necessary investment in their human resources information systems so that their pay audits are based on reliable data."
Forum Response: Transport and Salaried Staffs Association
A spokesman for the TSSA said: "Almost 30 years after the Equal Pay Act made it illegal to pay women less than men for doing the same job, women working full time still earn on average £559 less per month than men.
"Achieving women's rights is not the responsibility of women alone and that's why TSSA is supporting the Equal Opportunities Commission's 'It's time to get even campaign'."
Forum Response: GMB - Britains General Union
Debbie Coulter, GMB deputy general secretary said: “The GMB believes that the next Labour government should bring about a new single equality act. The act should compel employers to use equal pay questionnaires to find out if they have an equal pay problem.
"We applaud the work that the government has already done in creating voluntary questionnaires and we know that the best employers will make use of them.
"However as ever, it is the bad employers who will refuse to take action over unequal pay. The government’s questionnaire – without legal force - will make targets of women who are trying to achieve equality by putting the burden of proof on the individual. The only way to resolve the problem is to ensure that all employers take their responsibility seriously and conduct equal pay audits.
"In the meantime the GMB is serving notice on employers who persist with inequality of pay. We will take legal action against employers on behalf of any women whose employers persist with pay secrecy.
"The GMB is currently writing to 200 employers asking them to work with us - and for us together to carry out equal pay audits on behalf of the thousands of women who work for these employers. Where employers work with us we can solve any identified problems together.”
Westminster Briefing
ePolitix.com is pleased to announce a Westminster Briefing entitled "Countdown to the CEHR: Equality and Diversity After the White Paper" which will be hosted by The House Magazine on Thursday June 24, 2004 in Westminster.
For further details please contact Parvin Madahar on 020 7227 3048 or register your interest via www.westminster-briefing.com.
