6 The pay gap between men and women
| (28839)
12169/07
COM(07) 424
| Commission Communication: Tackling the pay gap between women and men
|
| Legal base | — |
| Document originated | 18 July 2007
|
| Deposited in Parliament | 30 July 2007
|
| Department | Communities and Local Government
|
| Basis of consideration | EM of 9 October 2007
|
| Previous Committee Report | None
|
| To be discussed in Council | No date set
|
| Committee's assessment | Politically important
|
| Committee's decision | Cleared
|
Legal background
6.1 Article 2 of the EC Treaty makes the promotion of equality
between men and women a part of the Community's task.
6.2 Article 141 of the EC Treaty requires Member
States to ensure that the principle of equal pay for male and
female workers for equal work is applied. It also requires the
Council to adopt measures to ensure the application of the principle
of equal pay for equal work or work of equal value. In 1975, the
Council adopted a Directive on the approximation of Member States'
laws on equal pay.[23]
Since then, it has adopted several other Directives on equality
between men and women which are relevant to equal pay.[24]
6.3 There is extensive case law of the European Court
of Justice (ECJ) on the application of Article 141 and the equal
pay Directive.
The Commission's Communication
6.4 The Communication notes that in 2005 women earned
on average 15% less than men in the EU. There are, however, wide
disparities. For example, Malta had the smallest gender pay gap[25]
in the EU (4%); it also had the lowest rate of female employment.
Cyprus had the biggest pay gap (25%) and a female employment rate
higher than the EU average. Despite the requirements of EC legislation,
the judgements of the ECJ and the action of the Member States
to achieve equality, the gender pay gap has narrowed only a little;
for example, the gap for the EU 27 was 17% in 1995 and reduced
by only 2% over the next ten years.
6.5 The Communication discusses the difficulties
in identifying the causes of the pay gap and of showing whether
there is unfair discrimination where, for example, some jobs in
a company are done mainly by women and others mainly by men.
6.6 The Commission emphasises that equal pay is required
not only on grounds of fairness but also to reduce poverty and
make full use of women's potential in employment. The Communication
calls for further action by the Commission, Member States, employers
and trades unions to tackle the pay gap. It suggests what might
be done under four headings:
- examining ways to improve the
EC legislation and its application;
- promoting equal pay as part of Member States'
efforts to achieve the Lisbon Strategy for Growth and Jobs;
- encouraging employers to eliminate unjustified
differences in pay; and
- learning from each other through the exchange
of information about best practice.
6.7 Each of the four sections includes a list of
the action the Commission will take. For example:
- in 2008 the Commission will
analyse the existing EC legislation of equal pay and propose amendments
where necessary;
- the Commission will improve the quality and supply
of statistics relevant to measurement of the pay gap;
- it will encourage Member States to seek grants
from the European Social Fund to tackle the causes of unequal
pay and improve women's access to employment; and
- the Commission will call upon public authorities
to use procurement as a means to encourage private contactors
to adopt equal pay policies.
6.8 The Annex to the Communication contains summaries
of EC legislation and ECJ case law on equal pay; lists factors
which can contribute to the gender pay gap; provides statistics,
by Member State, on the pay gap and related matters, such as women's
employment rates; and gives examples of action Member States have
taken to reduce the pay gap.
The Government's view
6.9 The Secretary of State for Communities and Local
Government (Hazel Blears) tells us that the Communication does
not include any proposals for new EC legislation and that it has
no immediate policy consequences for Member States.
6.10 She says that the most recent data shows that
the gender pay gap in the UK fell from 20.5% in 2005 to 17.2%
in 2006. She adds that:
"The Government is determined to make further
progress to tackle the pay gap, because it is unfair in principle
and because it also entrenches the unequal division of labour
in the home — preventing fathers from playing a more active
role in their children's early years and preventing women from
fulfilling their opportunities to work."
6.11 The Minister says that every Government department
and agency has produced an equal pay action plan; the proportion
of women in Civil Service top management posts rose from 12.7%
in 1998 to 26.8% in 2006; and local government employers have
committed themselves to tackling unequal pay for men and women.
She also tells us that the Government is currently "looking
at how equality considerations can be built into the procurement
process".
Conclusion
6.12 The elimination of unfair pay differences
between men and women is of great political importance and so
we draw this interesting Communication to the attention of the
House. As the Minister says, the Commission is not proposing any
new legislation or expenditure at this stage. We have no questions
that we need put to the Minister about the document and we are
content to clear the document from scrutiny.
23 Council Directive 75/117/EEC. Back
24
For example, Directive 76/207/EEC on equal access to employment,
vocational training and promotion; and Directive 97/80/EC on the
burden of proof in cases of alleged sex discrimination. Back
25
The Commission defines the gender pay gap as the difference between
average gross hourly earnings of male paid employees and of female
paid employees as a percentage of average gross hourly earnings
of male paid employees. Back
| 
