UK Cases Database – Equal Pay: Case Name Facts Strathclyde The appellants, all of whom are unpromoted women teachers employed by Regional the respondents, advance a claim to equal Council v pay under the Equal Pay Act 1970. Their Wallace, claim is based on the fact that, although HL they do the same work as a "principal teacher," they are paid at a lower rate. Each of the female applicants has selected a male comparator who is a principal teacher employed by the respondent and claims equality of pay with such comparator. The appellants claim that they were doing "like work" to that done by the male comparators and are therefore entitled to the benefit of an equality clause giving them equal pay with their comparators. The respondents now concede that the appellants' work is like work. It follows that the appellants will be entitled to equal pay with principal teachers unless the respondents can establish a defense under subsection (3) of section 1, i.e. prove that the differences in pay are "genuinely due to a material factor which is not the difference of sex." Ruling Principle Links Both the Sex Discrimination Act 1975 and article 119 of the European Treaty recognize two types of sex discrimination. First, there is direct discrimination, i.e. a detriment suffered by women which they would not have suffered but for being women. Second, there is indirect discrimination, i.e. a detriment suffered by a class of individuals, men and women alike, but the class is such that a substantially larger number of women than men suffer the detriment. The classic example of indirect discrimination is a policy under which part-time workers, whether male or female, are paid less than full-time workers. There are many more women than men who are part-time workers. Accordingly such a policy applied to part-time workers is indirectly discriminatory against women. Section 1(3) provides a defense if the employer shows that the variation between the woman’s contract and the man’s contract is “genuinely” due to a factor which is (a) material and (b) not the difference of sex. The requirement of genuineness is satisfied if the tribunal comes to the conclusion that the reason put forward was not a sham or pretence. For the matters relied upon to constitute “material factors”, it has to be shown that they were in fact casually relevant to the difference in pay, i.e. that they were significant factors. This is a test which looks to the reason why there is a disparity. Finally, the employer has to show that the disparity in pay is due to a factor “which is not the difference of sex”, i.e. is not directly or indirectly sexually discriminatory. http://www.bailii. org/uk/cases/UK HL/1998/4.html Under the Sex Discrimination Act 1975, direct sexual discrimination is always unlawful. But, both under the Sex Discrimination Act 1975 and under article 119, indirect discrimination is not unlawful if it is "justified”. There was clear and largely uncontradicted evidence as to why the appellants were not paid the same rate as the principal teachers. Glasgow City Council v Marshall, HL The case concerns the pay of instructors and teachers in special schools. The applicants are eight instructors, seven women and one man, working in special schools within the former local government area of Strathclyde region. Their employer was Strathclyde Regional Council, the education authority for the region. That was the position when the applicants lodged their claims. After the local government reorganization of 1996, the applicants were employed by the council's statutory successors. The teachers are paid much more than the instructors; they have teaching qualifications, and the instructors do not. In these proceedings the seven women instructors claimed that, although lacking formal teaching qualifications, they were employed on like work with male teachers working in the same special schools. Conversely, one male instructor claimed he was engaged on like work with female teachers. The applicants claimed that, accordingly, they were entitled to the same pay as their respective male and female teacher comparators. Part of the purpose of the Equal Pay Act was to ensure that discrimination does not arise through accident or inertia. If an employer fails to rebut the presumption of sex discrimination because he is unable to show a proper reason for the disparity in pay, the case falls within the mischief the Act was intended to remedy. The scheme of the Act is that a rebuttable presumption of sex discrimination arises once the gender-based comparison shows that a woman, doing like work or work rated as equivalent or work of equal value to that of a man, is being paid or treated less favorably than the man. The variation between her contract and the man's contract is presumed to be due to the difference of sex. The burden passes to the employer to show that the explanation for the variation is not tainted with sex. In order to discharge this burden the employer must satisfy the tribunal on several matters. First, that the proffered explanation, or reason, is genuine, and not a sham or pretence. Second, that the less favorable treatment is due to this reason. Third, that the reason is not 'the difference of sex'. If there is any evidence of sex discrimination, such as evidence that the difference in pay has a disparately adverse impact on women, the employer will be called upon to satisfy the tribunal that the difference in pay is objectively justifiable. But if the employer proves the absence of sex discrimination he is not obliged to justify the pay disparity. An employer, who proves the absence of sex discrimination, direct or indirect, is under no obligation to prove a “good” reason for the pay disparity. If there is any evidence of sex discrimination, such as evidence that the difference in pay has a disparately adverse impact on women, the employer will be called upon to satisfy the tribunal that the difference in pay is objectively justifiable. In order to discharge the burden of showing that the explanation for the variation is not tainted with sex the employer must satisfy the tribunal on several matters. First, that the proffered explanation, or reason, is genuine, and not a sham or pretence. Second, that the less favorable treatment is due to this reason. The factor relied upon must be the cause of the disparity. The factor must be “material” in a causative sense, rather than in a justificatory sense. Third, that the reason is not “the difference of sex”, which is apt to embrace any form of sex discrimination, whether direct or indirect. Fourth, that the factor relied upon is a “material” difference, that is or, in a case within s.1(2)(c), may be, a significant and relevant difference, between the woman’s case and the man’s case. http://www.ba ilii.org/uk/cas es/UKHL/200 0/5.html Rainey v Greater Glasgow Health Board, HL The appellant, a woman, has since 1/10/80 been employed by the respondent board at the Belvidere Hospital, Glasgow, as a prosthetist. The remuneration of employees of the National Health Service is determined by negotiation and agreement in the Whitley Councils for the Health Services. Mr. Crumlin commenced employment with the National Health Service at Belvidere Hospital in July 1980 at the salary of £6,680 per annum, the same as he had been receiving from his former employer. The appellant’s qualifications and experience were broadly similar to those of Mr. Crumlin. The rates of pay and conditions of service offered to and accepted by her corresponded to those of a medical physics technician at the appropriate point on the Whitley Council scale. Her starting salary was £4,773. The difference between the case of the appellant and that of Mr. Crumlin is that the former is a person who entered the National Health Service at Belvidere Hospital directly while the latter is a person who entered it from employment with a private contractor. It is significant that a large part of the difference which has opened up between the appellant's salary and Mr. Crumlin's is due to the different negotiating machinery. There is no suggestion that it was unreasonable to place them on the particular point on the Whitley Council scale which was in fact selected, ascertained by reference to the position of medical physics technicians and entirely regardless of sex. It is in any event the fact that the general scale of remuneration for prosthetists was" laid down accordingly by the Secretary of State. It was not a question of the appellant being paid less than the norm but of Mr. Crumlin being paid more. He was paid more because of the necessity to attract him and other privately employed prosthetists into forming the nucleus of the new service. I am therefore of the opinion that the grounds founded on by the board as constituting the material difference between the appellant's case and that of Mr. Crumlin were capable in law of constituting a relevant difference for purposes of section 1(3) of the Act of 1970, and that on the facts found by the industrial tribunal they were objectively justified. A difference in pay between a female prosthetist and her male comparator, employed on like work but recruited from the private sector on his existing terms and conditions when the prosthetist service was established prior to her employment, was “genuinely due to a material difference (other then the difference of sex) between her case and his”, where the fact that the new service could never have been established within a reasonable time if the employees of private contractors had not been offered a scale of remuneration no less favorable than that which they were then enjoying was a good and objectively justified ground for offering that scale of remuneration. There was no suggestion that it was unreasonable to place the prosthetists on the particular point on the salary scales which was in fact selected, and it was not a question of the women being paid less than the norm but of the comparator being paid more because of the necessity to attract him. Per Lord Keith: there is no material difference in principle between the need to demonstrate objectively justified grounds of differenc3e for the purpose of s.1(3) of the Equal Pay Act and the need to justify a requirement or condition under s.1(1)(b)(ii) of the Sex Discrimination Act. Although the European Court in BilkaKaufhaus case referred to “economic” grounds objectively justified, read as a whole the ruling of the European Court would not exclude objectively justified grounds which are other than economic, such as administrative efficiency in a concern not engaged in commerce or business. The true meaning and effect of Article 141 in the context of the employer’s defense is the same as that correctly attributed to s.1(3) of the Equal Pay Act by the EAT in Jenkins v Kingsgate (Clothing) Productions (No. 2). A difference between the woman’s case and the man’s must be “material”, which means “significant and relevant”. A relevant difference for the purpose of s.1(3) may relate to circumstances other than the personal qualifications or merits of the male and female workers who are the subject of comparison. Consideration of a difference between “her case and his” must necessary involve consideration of all the circumstances of that case. These may go beyond the personal qualities by way of skill, experience or training which the individual brings to the job. http://www. bailii.org/u k/cases/U KHL/1987/ 16.html Ratcliffe v North Yorkshire County Council, HL A difference in pay, between the female school catering assistants and their male comparators in local government on work rated as equivalent, which resulted from a reduction in the woman’s wages from the local government rate because of the employer’s need to tender for work at a commercially competitive rate, was not genuinely due to a material factor which was not the difference of sex. To reduce the women’s wages below that of their male comparators was the very kind of discrimination in relation to pay which the Act sought to remove. Hayward v Cammell Laird Shipbuilders Ltd, HL If a contract contains provisions relating to basic pay, benefits in kind such as the use of a car, cash bonuses and sickness benefits, on the natural and ordinary meaning of the word “term” of the contract, simply because they can all together be considered as providing for the total “remuneration” for the services to be performed under the contract. On the correct construction of s.1(2)(c) of the Equal Treatment Act as amended, a woman can point to a term of a similar kind in the man’s contract is entitled to have that term made not less favorable irrespective of whether she is as favorably treated as the man when the whole of her contract and the whole of his contract are considered. Therefore, a woman employee on work of equal value was entitled to the same basic hourly wage and overtime rates as her comparator, notwithstanding that she received additional holidays and better sickness benefits. Conducted & Edited by: Arwa Rinawi, Adv. Per the Lord Chancellor [Lord Mackay]: Section 1(3) would not provide a defense to an employer against whom it was shown that a term in the woman’s contract was less favorable to her than a corresponding term in the man’s contract, on the basis that there was another term in the woman’s contract which was more favorable to her than the corresponding term in the man’s contract. At the very least, for s.1(3) to operate, it would have to be shown that the unfavorable character of the term in the woman’s contract was in fact due to the difference in the opposite sense in the other term and that the difference was not due to the reason of sex. The natural meaning of the word “term” in the context of s.1(2)(c) is a distinct provision or part of the contract which has sufficient content to make it possible to compare it, from the point of view of the benefits it confers, with a similar provision or part in another contract. Therefore, on the correct construction of s.1(2)(c)(i), if in the contract of a woman and the contract of a man employed on work of equal value there is “a term of a similar kind” – i.e. a term making a comparable provision for the same subject- matter – the two must be compared and if, on that comparison, the term of the woman’s contract proves to be less favorable than the term of the man’s contract, then the term of the woman’s contract is to be treated as modified so as to make it not less favorable.