Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s report, along with its statement before the Conference Committee on the Application of Standards in June 2006, the ensuing discussion and the conclusions of the Conference Committee. It also notes the communication dated 31 August 2006 submitted by the Trades Union Congress (TUC) on the application of the Convention.

1. The Committee notes with interest the report prepared by the Women and Work Commission (WWC) entitled “Shaping a Fairer Future” which considers a diversity of factors that have contributed to the persistent pay gap between men and women along with a range of solutions towards narrowing this gap. The Committee notes that the solutions identified in the report address four key areas including: (1) informed choices for girls at school; (2) combining work and family life; (3) lifelong training and learning; and (4) improving workplace practice. It notes, in particular, the discussion relating to the barriers that women face in lodging equal pay claims. On this matter, the Commission recommended that consideration be given to extending the concept of the hypothetical comparator to equal pay claims – a mechanism already in place under the Sex Discrimination Act – allowing women to draw on other evidence showing what a man might be paid in order to bring a claim. The WWC also recommends that the introduction of generic or representative equal pay claims be considered as a way to enable women to bring joint claims. The Committee welcomes the Government’s indication that it is determined to address all the causes of the pay gap highlighted in the WWC’s report, and requests information on its plan of action for implementing the WWC’s recommendations and what impact the measures taken have had on addressing the root causes of pay inequality between men and women. The Committee also asks for a copy of the Commission’s follow-up report, once available, assessing the implementation of its recommendations. Please also provide information on the results of the Discrimination Law Review with respect to the Equal Pay Act 1970 and whether the Government intends to introduce additional procedural options for equal pay claimants such as those noted above.

2. Measures to address the wage gap between men and women in the private sector. With regard to the wage gap between men and women, the Government reports that, in 2005, it stood at 22.6 per cent in the private sector compared with 13.3 per cent in the public sector. The Committee notes that the Government and the Equal Opportunities Commission (EOC) continue to encourage private sector employers to carry out equal pay reviews (EPRs) on a voluntary basis. It notes from research conducted by the EOC in 2005, however, that only a third of large organizations in both the private and public sectors have completed an EPR, falling short of the EOC’s target of 50 per cent by the year 2003. The research also showed that, if the current rate continues, the Government will not meet its own EPR target for large public sector firms by 2008 (45 per cent). In light of this slow progress, the Committee recalls the conclusions of the Conference Committee on the Application of Standards in 2006 encouraging the Government to take more proactive measures to address the remaining gender pay differentials, particularly in the private sector. It also notes the TUC’s submission arguing for the introduction of mandatory pay reviews in the private sector in order to require employers to demonstrate that they respect the principle of equal remuneration and that their pay systems are not discriminatory. Given that the Government’s efforts to encourage employers to carry out voluntary equal pay reviews have not met expectations, and considering the Government’s indication that it is not convinced of the need for a gender equality duty in the private sector, the Committee asks the Government to provide information on what additional measures it is taking or considering to ensure the application of the principle of equal remuneration in the private sector, particularly in light of the recommendations of the WWC. The Government is also asked to keep the Committee informed of the progress made towards encouraging more private sector employers to conduct equal pay reviews, along with details on the contribution of the EOC and Equal Pay Panel of Experts in this regard. Please also indicate what further measures have been taken to engage with the social partners on this matter as encouraged by the Conference Committee in its conclusions.

3. Part-time and flexible work. The Committee notes that, in 2005, the average hourly pay for women working part time was 61.4 per cent of the average hourly pay of men working full time – a situation which the WWC considers unacceptable. According to the WWC, women returning to the labour market after time spent looking after children often encounter difficulty finding work that matches their skills. Those looking for part-time work crowd into a narrow range of lower-paying occupations due to a lack of quality part-time jobs. Often they have to change employer and occupation – and accept lower pay – to get part-time work. Furthermore, research by the EOC on flexible work showed that working part time has a detrimental and long-term impact on women’s earnings. The Government indicates that there has been a greater use of flexible work arrangements, which has significantly benefited women as well as men. It reports that the introduction of a right to request flexible work has seen 30 per cent more mothers and three times as many fathers working on a flexitime basis as compared to 2002. This in turn has enabled mothers in particular to stay with the same employer after returning to the labour market rather than having to look for lower-paid part-time work elsewhere. While acknowledging these positive developments, the Committee notes the WWC’s numerous recommendations touching on part-time and flexible work arrangements, including its recommendation that the Government establish a UK-wide quality part-time work change initiative to support new measures aimed at achieving a culture change, so that more senior jobs – particularly in the skilled occupations and the professions – are more open to part-time and flexible work. The Committee also notes in this regard the conclusion of the Conference Committee on the Application of Standards that special attention should be given to the temporary and part-time work sector, having regard to both the gender pay gap and the concentration of women in that sector. The Government is asked, in light of the WWC’s recommendations, to indicate what measures it is adopting or considering to further address the significant pay disadvantages facing part-time women workers.

The Committee is raising other points in a request addressed directly to the Government.