IMI employment expert Sally-Anne Hodder
The Government has announced a consultation on applying the terms of equal pay regulations in the Equality Act 2010. IMI has been asked to make a contribution on behalf of the retail motor industry. We would like to hear your views.
The aim of the changes being considered in the consultation, according to the Prime Minister, is to force all firms with more than 250 staff to publish the average pay of men and women they employ within twelve months. Inevitably, this requirement will be applied to smaller companies thereafter.
The published figures show that women earn 80p for every pound paid to the average man. Even this presents a slightly rosy picture because it is based on averages and not equal pay for work of equal value, which is the focus of the Equal Pay Act of 1970.
The legislation was introduced after a strike by sewing machinists from Ford who claimed a 15% pay rise to give them parity with male production workers. Since then the pay gap generally has been slow to close. After 45 years the government is still only talking about ending the disparity within a generation.
The average gap between pay for men and women conceals some wider gaps in some industrial sectors. Figures from the Office of National Statistics (ONS) show that in skilled trades the gap is still a cavernous 25%.
It is widely understood that the retail motor industry needs to increase the number of women it employs in order to get the most out of the growing number of female customers. Adjusting pay is only part of the story, but it will be better to fix this first rather than wait for expensive equal pay claims to come in later. It will also help to break down negative stereotypes women have about the sector.
If you're wondering just how expensive an equal pay claim could be - local authorities like Birmingham will be paying their bill for discriminating against women until doomsday. They currently owe in excess of £11 billion. Small businesses will not have to find nearly that amount, but it could be proportionate, so it is well worth thinking about.
You may want to call in an expert to help you prepare to comply with Equal Pay legislation, but there is a lot of information already available to assist you. The list of Top Ten Tips for Equal Pay (found on the right-hand side of this page) is a good place to start.
It tells you how to keep your pay systems simple and transparent, which are a good thing to do and a great thing for your female staff to know.
If you would like to contribute to IMI's response to the Government consultation on Equal Pay please send your comments to me on randr@theimi.org.uk.