Equal Pay

Yasmin Qureshi Excerpts

Wednesday 18th March 2015 Westminster Hall

[Yasmin Qureshi (Bolton South East) (Lab)]

It is a pleasure to speak under your chairmanship, Mr Weir. I congratulate my hon. Friend the Member for Islington South and Finsbury (Emily Thornberry) on securing this important debate. It is important because we are coming to the end of this Parliament, and who knows what will happen after the election? It is also important because, irrespective of what people think, there is a fundamental principle that those who do the same job should be paid the same amount. It is well documented and accepted that, on the whole, women in the job market do worse than men in terms of pay.

I want to place on record my thanks to the Dagenham machinists who took action over equal pay, leading to the 1970 Act. However, 40 years later, women are still being paid less than men, which means they effectively stop earning, relative to men, on 4 November in any year, which is why that is equal pay day. On average, a woman earns £5,000 less than a man, whether they are in a part-time or full-time job.

There are many reasons for that. One is the motherhood penalty—the impact of having children—which affects women’s careers and earnings. There is also the fact that many women were employed in public sector jobs and are now having to go into the private sector, where the pay gap is often big and where no one knows what somebody may be earning. Since 2008, almost 1 million women have moved to low-paid jobs, zero-hours contracts and temporary jobs. Where women have become self-employed, the pay gap with men is 40%. Women are also still the primary carers for their children, elderly parents and other relatives, and we know how much pressure the growth in the elderly population is putting on the family and particularly women.

The good news is that more women are in upper management in different industries, but research from the Chartered Management Institute last year found that female managers aged 40 or above took home 35% less on average than their male counterparts. There is also a difference in bonuses. The average female director gets £41,956, but the average male director gets £53,010.

Some of what I am saying is in the public arena, but many people are still surprised by it. As has been alluded to, some young women probably think they will be paid equally with someone else because they will be doing a similar job, but they will find that the reality is very different. There is also still gender segregation, in that there are jobs that women do not tend to do. There are not many opportunities for women in those areas, whereas there are for men, who can earn quite a decent income.

I do not want to repeat everything that has been said, but my hon. Friend the Member for Islington South and Finsbury put forward some practical steps Governments can take to deal with these issues, and those should be taken on board. In that respect, I was disappointed earlier in this Parliament when the Government changed the rules on employment tribunals, effectively making them even harder to access and inevitably imposing a financial penalty on people. The mind just boggles.

As a barrister, I did not practise much in employment law, but I did a lot of voluntary work, and I went to employment tribunal appeals on behalf of claimants—many were women, some were disabled and some were from the ethnic minorities. It is not an easy thing for people to go to the tribunal system, as the Government suggested when they made their changes. Someone who is dismissed does not simply say, “Right, the first thing we are going to do is go to a tribunal, because that’s the way to deal with this.” The tribunal system was the last resort for many people. Although many people were discriminated against and unfairly dismissed, only a tiny percentage ever made it to an employment tribunal. At that point, however, there were at least judges and others who could independently evaluate the case.

The current financial penalties did not exist then. Putting such restrictions in place means that people can now rarely go to a tribunal. Constituents have come to me in my constituency about work-related issues. They want to go to an industrial tribunal about the way they have been treated, but they are unable to, because they are blocked from doing so. The changes the Government have brought in are punishing people. At least previously people had recourse to a tribunal, to which they could get access without too much difficulty. Now that is not possible, so will the Minister reconsider the tribunal issue and a return to the previous system? It worked fine, and was not being misused. Before a hearing, there would always be a case management hearing in which the tribunal judge would sit with the parties for discussion of the evidence, to learn what the contentious issues were. The tribunal would concentrate on the narrow issues that were the subject of dispute, and not spend time unnecessarily on issues that everyone agreed about.

I am sorry to say that the present Government’s ideology and rhetoric are anti-employee and anti-trade union. They comment all the time in Parliament on the fact that some Labour MPs have union funding, and make it sound as if it is really bad. Guess what? The unions are made up of working people who choose to give the union their subscription. If the union donates money to a political party, that is because the Labour party is the one that has always pushed for equal pay and workers’ rights and campaigned on discrimination. It created tribunals as useful bodies for people whose rights were being taken away. Now the majority of people cannot get access to a tribunal. There is an ideological dislike of the working person, and we should get rid of that mentality. There is a lot of bullying, intimidation and discrimination in the workplace. Women—and other groups as well—are suffering discrimination. That is not good enough. I ask for the question of tribunals to be reconsidered.

My hon. Friend the Member for Rotherham (Sarah Champion) argued for pay to be published. That is important—it is only right and fair. We believe in transparency and think that everyone should know what is going on. We believe in fairness; but where is the fairness in not telling someone what the person next to them earns, especially if they do the same job? The civil service and public sector are open about pay and grading, and what salary goes with what grade. What is wrong with the private sector doing the same? What does it have to hide? It hides the information because that allows it to discriminate without anyone being able to tell. It allows managers to pick favourites and to discriminate in secret, knowing that no one will jump on them for that. If we believe in an equal, fair and transparent society, that should be one of the first things we should deal with. The Government have been asked to do it, and have not.

Primary legislation would not even be needed, because regulations to require pay to be published can already be passed under section 78 of the Equality Act 2010, before the next election. It is not difficult, and it is important, because it would help women and would discourage employers from the practices in question. If they knew that what they were doing would be in the public domain, they would stop doing it. It would be a concrete step, and not a very complicated one, to help women to argue for fair pay. It would effectively stop private employers discriminating against women and getting away with it. It is not too much to ask for; it is a simple thing in a fair and equal society, and I ask the Minister to consider it.