PRIVATE SECTOR EQUAL VALUE DEVELOPMENTS IN THE UNITED KINGDOM (UK) Hong Kong Equal Value Conference 5 th October 2001.

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Presentation transcript:

PRIVATE SECTOR EQUAL VALUE DEVELOPMENTS IN THE UNITED KINGDOM (UK) Hong Kong Equal Value Conference 5 th October 2001

UK EQUAL PAY LEGISLATION Passed in 1970 Came into force in 1975 Outlawed ‘ women ’ s rates ’ of pay Cases to Tribunal on grounds of –‘ like work ’ –‘ work rated as equivalent ’

1970 EQUAL PAY ACT Very limited impact because of: –Occupational segregation  few ‘ like work ’ claims –Little job evaluation  few ‘ work rated as equivalent ’ claims –Tribunals interpreted legislation very strictly –Little support for applicants

1984 EQUAL VALUE AMENDMENT 1972 – UK joined European Union (EU) EU Equal Pay Directive 1982 – European Court of Justice (ECJ) said UK legislation did not comply with European requirements 1984 – Amendment added ‘ equal value ’ to grounds for Tribunal claim

EQUAL VALUE CLAIMS Difficult procedure but many claims Increased EOC and union support Some examples: –Ford sewing machinists –Pickstone & Others v Freemans (mail order) –Clerical & secretarial staff v Lloyds Bank –Enderby & Others v Health Authorities (Speech & Language Therapists) –McKechnie & Others v County Council (nursery nurses)

1984 EQUAL VALUE AMENDMENT Links to Job Evaluation (JE) –‘ equal value ’ = comparison between jobs of ‘ skill, decision and effort ’  factors in mini job evaluation scheme –Fair and non-discriminatory job evaluation scheme is a potential defence to an ‘ equal value ’ claim

CASE STUDY ONE – PIZZA MAKING COMPANY Agreed jointly designed JE scheme Factors included: –Responsibility for hygiene, health & safety –Responsibility for product quality –Manual dexterity Detailed job information through job questionnaire

CASE STUDY ONE – THE OUTCOMES Rank order of jobs did not change significantly Showed pay gap between grades 2 (mainly male) and 3 (mainly female): too wide, so narrowed Grade 3 women applied for grade 2 jobs Men prepared to work in grade 3 jobs

CASE STUDY TWO – FINANCE COMPANY Agreed jointly designed JE scheme Factors included: –Responsibility for customers –Communication skills –Working conditions Detailed job information through job questionnaire

CASE STUDY TWO – OUTCOMES Customer-related jobs moved up rank order Call takers (female) upgraded Grading of secretarial jobs changed from boss- related to demand-related BUT many private sector firms did nothing

PAY STRUCTURE REVIEWS 1997 EOC Equal Pay Code recommended equal pay audits 1998 PayCheck published 2000 Independent Review recommended pay equity plans 2001 Equal Pay Task Force recommended equal pay reviews 2001 PayCheck developed for civil service use

WHAT IS AN EQUAL PAY AUDIT? Statistical analysis of organisational pay structure by gender Each element (e.g. basic grading & pay; working pattern payments; performance related pay) reviewed against good practice check-list