Equal Pay and the Gender Pay Gap

Neil Gray Excerpts

Wednesday 1st July 2015 Commons Chamber

[Gloria De Piero]

I will come to the way in which full-time and part-time gender pay gaps are measured. I believe there is a flaw in the measurement. An hour at work is an hour at work, no matter whether someone is part-time or full-time. I for one find it peculiar that the Office for National Statistics makes that distinction. Is it because most women are in part-time work? I fear that that is exactly why.

Friends Life, the big insurance company, was one of the first big companies to publish its pay gap. It said that

“what gets measured, gets managed”

and that

“what gets publicly reported, gets managed better”.

In other words, transparency can lead to real and lasting change. We believe it is time to take that principle and apply it to the whole country.

The purpose of the motion is to propose that the independent Equality and Human Rights Commission should be tasked with analysing the information and producing a report to the Government and Parliament each year. It will monitor progress and make recommendations for action. It will act as an equal pay watchdog. An annual equal pay check would be a tool used to measure progress towards the goal of eliminating the gender pay gap in this generation.

By analysing the information, the EHRC could compare progress in different sectors, highlight areas where the gap is unusually high or widening, and identify companies, professions or industries where the gender pay gap is a thing of the past. We recommend that the EHRC draws on the expertise of the statisticians at the Low Pay Commission, because the disproportionate number of women in low-paid jobs is a major factor in the pay gap. Crucially, the EHRC should make recommendations for action, based on its analysis. It could do that by highlighting the best practice it finds in industries and individual companies, because there is not just one reason for the gender pay gap.

Discrimination still happens. I have spoken to women who are senior executives in investment banks and women working as council care assistants who have suffered because of it. Their stories are real and human.

[Neil Gray (Airdrie and Shotts) (SNP)]

The hon. Lady is making a very good speech and an important point, but does she agree that it is unacceptable for Labour-controlled North Lanarkshire Council, which encompasses my constituency, to have dragged the equal pay claims of its hard-working staff through the courts for years at great cost to the taxpayer?

[Gloria De Piero]

I am not an expert on North Lanarkshire Council, but I would say, in relation to Scotland, that the pay gap has increased while the Scottish National party has been in government. That is a worry and it goes against the trend.

One woman who works in childcare won her equal pay claim after years of being paid less than men working in jobs that required fewer skills. She told me:

“I’d got a fair amount of money through the payout, but all of those years I struggled to pay my bills and the debt I was in as a low-waged woman worker…all those years I was in debt to credit card companies, even though I had been to college for two years. I’d got qualifications; it was a vocation not a job. And I think what would my life have been like if I’d been paid a fair wage?”

Winning an equal pay claim has never been easy. Equal pay claims make up only a fraction of employment tribunal claims. The Government have made the task even harder with the introduction of tribunal fees, which have led to a 69% fall in equal pay claims. Fewer women are accessing justice to challenge pay discrimination.