Equal Pay and the Gender Pay Gap

Daniel Zeichner Excerpts

Wednesday 1st July 2015 Commons Chamber

[Daniel Zeichner (Cambridge) (Lab)]

I join others in congratulating the hon. Members for Stirling (Steven Paterson) and for Inverclyde (Ronnie Cowan), my hon. Friend the Member for Bermondsey and Old Southwark (Neil Coyle), and the hon. Member for Bury St Edmunds (Jo Churchill) on their powerful initial contributions to the House. I also associate myself with the comments of my hon. Friend the Member for Birmingham, Yardley (Jess Phillips) on the use of language here. I also pay tribute to my right hon. and learned Friend the Member for Camberwell and Peckham (Ms Harman) and my right hon. Friend the Member for Normanton, Pontefract and Castleford (Yvette Cooper) because whenever I meet women’s organisations in Cambridge I am struck by how quickly they tell me about the work done by them when they were in government and how they were such powerful champions for women. I suspect my hon. Friend the Member for Ashfield (Gloria De Piero) is well on the way to being spoken of in similar terms.

As others have pointed out, this has been a long battle and it is a long way from being won, and, sadly, progress has slowed since 2010. I will try not to repeat the points others have made, but before I entered Parliament I was very proud to work for Unison, Britain’s biggest public service union with over 1 million women members, many in low-paid public service jobs. Unsurprisingly, much of Unison’s time was spent campaigning to tackle the unfair gender pay gap.

As has been pointed out, that is not easy because the causes are complex. It is worth recalling that a decade ago another inestimable champion of women’s causes, Margaret Prosser, was asked by the then Government to look at these issues in detail. She concluded that it is

“a many faceted and multidimensional issue. The pay gap is affected by issues such as outdated work practices; expectations and stereotypes that are ingrained in us from a young age; differences in working patterns because of women’s role as ‘carer’; and a lack of quality part-time work”.

Sadly, in the decade since then these issues remain as real as ever, and the progress that was being made has slowed.

I am reminded of a book whose title has stuck with me over many years: “How working-class kids get working-class jobs.” It is always useful for those of us with time management problems to have a book where the entire message is summed up in the title. I think that same cycle applies to women’s jobs. The positive attempts to break that cycle have been undermined in recent years. For instance, the crisis in our careers service means that young women are again more likely to be directed down the traditional low-pay routes. There is a risk that the depressing funding cuts to many of our further education colleges will have the same effect.

Change comes when we make it happen, and Labour Governments have a proud record. We are particularly proud of the Equality Act which will for ever be associated with my right hon. and learned Friend the Member for Camberwell and Peckham. It is sad that the coalition Government chose not to implement some of the proposals, but I believe when they are finally implemented—I do believe they will be at some point—the impact will be far reaching.

In the meantime, the Government’s belated conversion to the cause of tackling unequal pay is welcome, as is their stated intention to implement section 78 of the Equality Act, but it is vital that this is done in a way that reflects what actually happens in the workplace, and is not used to hide what is really happening. I am grateful to former colleagues at Unison for bringing some of these points to my attention. For example, perhaps the Minister will be able to tell us whether bonus payments and overtime will be included. Men are typically far more likely to receive both. By not including them, comparisons will be seriously distorted and it will look as if pay in the workplace is more equal than it really is.

We also have to watch out for attempts to game the system. In the public sector, if a company wants to skew the results it will simply outsource the lower-paid, predominantly female part of the workforce so that their salaries are not included in the pay comparison figures.

[Chris Stephens]

I will call the hon. Gentleman my Unison comrade, if that is in order. Will he confirm that many public bodies now have legal advice which says that if they outsource they are no longer liable for equal pay claims?

[Daniel Zeichner]

I thank the hon. Gentleman for his comradely intervention. I am afraid I am not expert enough to be able to give advice on that, but I am sure others will be able to do so.

On the matter of sanctions for companies that fail to comply and whether that should be a criminal or civil matter, whatever sanction is applied has to be meaningful, or else we will be stuck in the same position that we were in for many years, when local authorities refused to implement equality-proofed equal pay because it was cheaper for them just not to do so at the time. It is perhaps worth considering whether publishing the results should be done as part of the annual auditing process, for which sanctions for non-compliance are already in place. This would work in tandem with Labour’s sensible proposals for an annual equal pay check to be carried out by the EHRC.

It is also worth pointing out that the EHRC has under this Government suffered drastic cuts to its funding and staffing with consequent effects on the level of service it can provide. It will need to be better resourced to take on the challenge of monitoring and supporting employers to do the right things. Other things could be done, including introducing mandatory pay audits for all employers, regardless of size. If we are serious about equal pay, that has to be the ultimate goal, and there must be a requirement to act on the audit. Failure to do so should, in itself, be an act of unlawful discrimination. Any protective award made in such circumstances should be proportionate to the scale of the problem and the number of women affected.

Let me finish by mentioning one sector that has suffered consistently from low pay for many years: local government. It is worth noting that, according to the Local Government Association, the gender pay gap in that sector has widened by 3% since 2010. Women’s pay for full-time equivalent posts in 2010-11 was 83.2% that of men’s whereas it is now 80.8%, so they are almost 20% worse off. It is worth pointing out that the local government workforce is 78% women and that 61% of jobs are part time, but more than 90% of those are done by women. Local government is undergoing constant reorganisation, with many people doing far more complex jobs. I fear that some councils are not undertaking the kind of job evaluation that should be going on, and there is a danger that after paying out some £2 billion in equal pay settlements, councils are again becoming vulnerable to a new wave of equal pay claims. There has to be a better way of doing it.

There are clearly ways forward and clearly things that can be done. As ever, the question is: is there the political will to do it? Sadly, I have to say that the signs from the Government are not encouraging—but we live in hope.