Equal Pay: Are we winning? Sandra Fredman Oxford University Old Square Chambers Gender Pay Gap 1997-2007 45 40 35 30 25 1997 2007 20 15 10 5 0 full time median full time mean part time median part time mean Components of the pay gap per hour worked* Component % of gap Years of full-time employment experience 26 Interruptions to the labour market due to family care 15 Years of part-time employment experience 12 Education 6 Segregation 13 Discrimination and other factors associated with being female 29 Total 100 Why aren’t we winning? • Equal pay • With a man in the same or comparable establishment • Doing like work • Work rated as equivalent • work of equal value • Unless justifiable • No proportionality • Job segregation, contracting out • Factors outside the market: division of labour in the home • Part-time, precarious work • Education, experience The Complaints Model: Weaknesses • Reliance on individual complainant – excessive strain on victim • Court’s intervention random – many cases unremedied • Fault-based: employer responsibility • Individualised: disrupts pay structures • Adversarial Complexity through complaints A potent combination • Each issue must be litigated • Pay protection: (Redcar v Bainbridge ) • Which terms to compare (Degnan v Redcar) • Do bonuses reflect productivity (Surtees) • Same employment: Same employer not sufficient- from ‘single body responsible’ (Robertson) to ‘body setting pay’ (Armstrong) Taking Individualisation to its extreme • 13,000 NHS equal pay claims; 10, 000 local government • Against employers: No-fee no win solicitors now joined by trade unions • Against trade unions: Discriminatory collective agreements (SDA s.77 ) • No collective approach - fear that agreements or settlements will lead to discrimination claims Outside public sector • • • • • Equal pay = 0.5% of claims in tribunals Predominantly like work Long process – 11 years for Enderby Low success rate: From 2000-2004, 25 private sector equal pay claims reached decision stage • 5 successful Principles for change • Equal pay as a fundamental right • Duty to implement equal pay exists regardless of individual complaint • Art 141: Member states must ensure that principle of equal pay is applied • Holistic response – address causes of unequal pay • Collective dimension • Private as well as public Way forward: Collective and Proactive • Initiative with employer and trade union through collective approach • Change systematic rather than ad hoc • Responsibility with those who can bring about change; no need to prove fault • Group remedies – institutional change • Participation Benefits of proactive duties • • • • Comprehensive and systematic Collective: consider whole pay structure Co-operative rather than adversarial Incorporate trade union and employee representatives • Benefits to employers Gender Duty • Duty to pay due regard to need to eliminate unlawful discrimination and promote equality of opportunity • Unlawful discrimination includes breach of equal pay act • Gender equality scheme – consider need to have objectives that address cause of difference in pay • Put into effect actions in plan within three years unless unreasonable or impracticable. Gender Duty Benefits • Endorsement of proactive approach • Holistic • Policy-making and service provision as well as employment • Applies to contracting out • Private bodies with public functions (but narrow) Weaknesses • ‘Due regard’ (Elias) • ‘Consider need to have objectives addressing causes’ • Equal pay reviews not mandatory • CF Art 141: ‘Ensure principle is applied’ • Public sector Building on the gender duty: A proposed proactive duty • Duty to institute equal pay within given time frame not just pay due regard • Central role of trade unions: information, negotiation, monitoring • Private employers • Hypothetical comparator Equal pay reviews guidance • Transparent grading structures and analytic job evaluation • Ongoing monitoring • Role of red-circles • Gender impact assessments on new policies Synchronising with individual claims • Individual claims derailing collective • Individual’s role: not individual claim but right to demand compliance with equal pay duty. • Key: compliance with EU law • Synchrony with individual claim • Adjudication: CAC