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Cath Everett

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Pay gap publishing will not be compulsory

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The coalition government has abandoned plans to make it compulsory for employers to measure and disclose the pay gap between male and female workers in favour of a voluntary publishing scheme.

 
The move, which was criticised by equalities campaigners and unions alike, will result in the relevant clause in the Equality Act 2010 simply not being implemented. Measures on positive action – rather than positive discrimination – in relation to recruitment and promotion will be introduced, however.
 
This means that, if employers have two or more job candidates of equal merit, they will be able to choose a female in preference to a male in order to make their organisations more representative.
 
Equalities Minister Lynne Featherstone said: “We want to move away from the arrogant notion that government knows best, to one where government empowers individuals, businesses and communities to make change happen. Different organisations face different challenges in promoting equality so if we are to get this right for everybody, a more flexible approach is needed.”
 
The Government Equalities Office, for which she currently works, will now be disbanded as a separate organisation and simply become a unit of the Home Office in a move intended to bring “equality into the heart of government”.
 
But equalities campaigners were sceptical. The Fawcett Society pointed out that in the 40 years since the introduction of the Equal Pay Act, voluntary measures had failed and women were still paid an average of 16% less than men.
 
A 2010 Female FTSE report by the Cranfield School of Management likewise revealed that only 12.5% of UK board positions in FTSE 100 companies – or 135 out of a total 1,076 – were held by women, a “barely noticeable change” on last year.
 
Geri Goddard, the Fawcett Society’s chief executive, told the Guardian: “The government’s decision not to bring into force section 78 is a huge disappointment and means this injustice will continue for a long time to come. The government has today consigned another generation of women to lower pay.”
 
The decision to rely on voluntary business action was not only “naive”, it also sent a “dangerous signal” that tackling discrimination against women was a “choice not a requirement”, she added.
 
Dave Prentis, general secretary of the Unison union, agreed. “The government fails the fairness test and is stripping down its commitment to equality. It is a disgrace that women are still getting paid less than men. This move threatens to turn the clocks back on the progress already made with equal pay,” he said.
 
While broadly welcoming the move Katja Hall, director of employment policy at employers lobby group the CBI, warned meanwhile: “The ability to choose candidates which are under-represented in the workforce in tie-break recruitment situations could be a useful tool, but employers will need clear guidance on how to use this positive action provision correctly to avoid falling foul of the law.”

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