Women and Work Commission chairman Baroness Prosser pleased at pace of progress on gender pay gap

One year on from the publication of the Women and Work Commission's report into closing the gender pay gap, its chair Baroness Margaret Prosser said she was "surprised" with the progress that had been made.

At a trade and industry sub-committee hearing last week on the commission's Shaping a Fairer Future report, published in March 2006, Prosser was asked what she thought about the government's action plan on her 40 recommendations.

"I was pleased that [the government] produced an action plan at all," she replied. "I'm surprised so much has been done already. I'm certainly not unhappy with the pace."

Prosser cited the Department of Trade and Industry's £500,000 part-time work fund and the Exemplar Employers initiative as significant achievements.

"More than 100 companies have taken part in the Exemplar Employers scheme, and are trialling more women managers and providing better careers advice," she said.

However, Prosser said she had some concerns that many schools still stereotyped women when it came to work experience and career guidance.

"The Department for Education and Skills accepted our recommendations on work experience, but I'm not sure how carefully [the department] is monitoring it," she said.

Norma Jarboe, director of Opportunity Now, which oversees the Exemplar Employers programme, said: "Lots of government reports have not had that much impact and have simply been shelved, but the government has reacted well to this one."

Jenny Watson, chair of the Equal Opportunities Commission, said the gender pay gap remained a stubborn 17% for women working in full-time roles.

"We are glad the government is taking this forward and look forward to seeing the report," she said.
But Prosser warned that the gender pay gap would remain a complicated and difficult issue to overcome.

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Equal Opportunities Commission says fundamental cultural shift is key to employment opportunities for ethnic minorities

A fundamental cultural shift in the way black and Asian women are treated at work and by public policy makers is needed to increase their employment opportunities, according to a report by the Equal Opportunities Commission (EOC).

Moving on Up: Ethnic Minority Women at Work, a two-year study of the issues, has established that Pakistani, Bangladeshi and black Caribbean women face significantly greater penalties than white women in the workplace.

Those who want to work are finding it more difficult to get jobs, progress within them and are more likely to be segregated into certain types of work, despite leaving school with the same career aspirations as white girls and similar or better qualifications than white boys.

In areas with above-average numbers of black and Asian women participating in the local labour market, women are entirely absent from a third of workplaces and under-represented in almost three out of five workplaces.

However, the EOC’s report found 28% of employers surveyed said they intended to introduce steps to improve the recruitment and progression of black and Asian women. However, the same percentage said they were unsure what action to take.

Between 2001 and 2020, ethnic minorities are expected to account for more than 70% of the growth in the UK population aged between 16 and 59, according to the report.

With UK employers facing skills shortages, the report concludes it is crucial to tap into a growing and increasingly well-qualified pool of young Pakistani, Bangladeshi and Black Caribbean women’s talent to maintain economic growth.

Jenny Watson, chair of the EOC said: “Young Pakistani, Bangladeshi and black Caribbean women are ambitious and equipped for work. But they are still suffering even greater penalties at work than white women. Time after time women told us about the ‘unwritten rules’ in their workplace, the hidden barriers that prevent them from realising these ambitions. Without tackling these unwritten rules, change will never come.”

John Cridland, the CBI’s deputy director-general, said: “Employers will welcome the examples of good practice highlighted by the EOC’s investigation, on which others can draw. As the report says, employers are keen to employ more women from ethnic minorities, but better guidance is needed to support them.

“The EOC’s call for better careers advice is also to be welcomed Ð this is something the CBI has repeatedly pressed government on.”

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Employers Forum on Age warns national minimum wage band for younger workers is ageist

The national minimum wage (NMW) band for younger workers constitutes age discrimination and must be brought into line with the adult rate, the Employers Forum on Age (EFA) has warned.

Last week, the government announced a 3.2% increase in the adult rate, from £5.35 to £5.52 per hour, with effect from October 2007. But staff in the 18- to 21-year-old bracket will only be paid a minimum rate of £4.60 per hour.

EFA director Sam Mercer said this sent out "completely the wrong message" to employers about the consequence of making decisions based on age in the workplace. "We are frustrated by the refusal to address the fact that under the current bands, 18- to 21-year-olds are paid less, simply because of their age and irrespective of their capabilities or responsibilities," she said.

The EFA call for action follows a warning from lawyers that the NMW flouts the new age laws and that apprenticeships specifically targeted at younger people would eventually be proved illegal.
Age discrimination in employment became illegal on 1 October 2006. The EFA is lobbying the government on the issue of minimum wage age bands. An Early Day Motion has been tabled in Parliament and now has 88 signatures representing cross-party support.

"The current argument from the government that employers might potentially avoid taking on younger workers if they had to pay them the same amount as workers over 21 is simply reinforcing the discriminatory practices that the legislation was designed to eradicate," Mercer said.

Employers' and unions' views on the NMW rise
EEF: "We are pleased the government has recognised the additional costs that many employers will face when statutory annual holiday entitlement increases in October."

CBI: "The NMW has brought real benefits to many lower-paid workers, but it is right that this year's increase took account of business reality."

CIPD: "If the NMW is to succeed, it must be set at a rate that improving pay at the bottom of the labour market does not have adverse consequences for jobs, inflation or the wider economy."

T&G: "We are concerned that the progress that has been made in tackling inequality could be rolled back if the minimum wage fails to even keep pace with inflation."

GMB: "The figure of £5.52 is still well short of half of the UK average hourly rate for full-time workers."

TUC: "Everyone stands to gain from making the minimum wage as robust as possible, so the government should use this year to continue moving its enforcement work up a gear."

This story was first created and published by Personnel Today