Select Committee on Business, Enterprise and Regulatory Reform Second Report


Conclusions and recommendations


1.  It is not yet clear how successful the attempts to spread best practice in relation to the careers advice and work experience placements arranged by schools have been. It will be some years before any improvements will feed through into the workforce. In the meantime, the Department for Children, Schools and Families must realise the importance of these apparently 'extra' duties of careers advice and work experience to achieving the Government's equality aims and must give more support and funding to the provision of those services in schools. (Paragraph 10)

2.   Employers—especially smaller companies without HR departments—find it difficult to devote the time and resources needed first to set up good work experience placements and secondly to ensure that they have met all the safety requirements. There is clearly a role for Sector Skills Councils, Chambers of Commerce and trade organisations, as well as Learning and Skills Councils, in providing information and helping companies to forge stronger business-education partnerships at a local level. (Paragraph 11)

3.  While we welcome the initiatives to encourage women who wish to do so to train in non-traditional fields of work, we are pleased that some of the initiatives are focusing on encouraging women to take more senior and responsible positions in traditional sectors, such as the project by Improve (the Sector Skills Council for the food and drink industry) to give NVQ3 training to 300 women workers in food manufacturing to enable them to become supervisors or team leaders; and Asset Skill's programme to teach workers in the cleaning sector management skills. Tackling 'horizontal segregation'—the dominance of managerial and professional jobs by men in sectors where the majority of the employees are women—is as important in opening up opportunities for women as ending 'vertical' or sectoral segregation. (Paragraph 13)

4.  The various pilots launched by the Government are welcome. By definition, it is likely that some will be more successful than others. It would be a wasted opportunity if any good practice learned were left to die with the pilots themselves. We recommend that, before the pilots are evaluated, the Department for Innovation, Universities and Skills (DIUS) plans carefully how to ensure the continuance and extension or roll-out of the successful initiatives (Paragraph 16)

5.  Helping with childcare, though welcome, is not the complete solution to the inaccessibility of some training courses to those unable to undertake them full-time in normal working hours. We are concerned that the Ofsted review of the flexibility of training by adult education providers has only recently been launched. We expect its findings as to best practice to be acted upon with more urgency than has been shown in relation to this problem so far. (Paragraph 19)

6.  We recognise that the Government needs to focus funding if it is to achieve its aim of ensuring that 80% of the population has Level 2 skills. However, it is a cause for regret if colleges are having to abandon useful courses or approaches to address under-representation of women in certain occupations. We recommend that, if colleges produce evidence that they are taking initiatives to deal with gender inequality, then the Minister should consider providing additional funding or at least allow them some discretion in the use of existing funding so that they can develop these initiatives. After all, this would also benefit those young people without Level 2 skills on whom the Government is currently concentrating. (Paragraph 20)

7.  We believe that the new Commission for Equality and Human Rights should investigate the reasons for the gender pay gap among apprentices, and that the Low Pay Commission should be asked to consider practical ways of rectifying the situation. (Paragraph 23)

8.  Simply increasing the number of apprenticeships will not, in itself, help women to better paid jobs if all that happens is they continue to choose traditional types of work. It is disappointing that women are less likely than men to complete apprenticeships in the traditionally male-dominated sectors. In the rush to increase the number of apprenticeships, the Government must not lose sight of the need to promote greater equality through this form of training. (Paragraph 25)

9.  Like the Women and Work Commission, we consider that 'Women Like Us' provides an interesting and potentially very useful model for involving social enterprise in giving careers support and guidance to women and placing them in good quality jobs with suitable hours. We support the Commission's recommendation for pilots in areas round the country and urge further action to promote such pilots, including through discussions with Regional Development Agencies and local authorities. (Paragraph 28)

10.  Since our predecessors reported, there appears to be wider recognition of the fact that there are insufficient training opportunities for women in non-traditional occupations, and measures are being taken to address this and to spread best practice. However, we are concerned that neither the need to tackle occupational segregation in general nor the specific problems faced by older women have been taken fully into account in the Government's priorities. The EOC emphasised the fact that because the Government's Skills Strategy focussed on those without basic qualifications, it excluded many women returners from support. Arguing that accessing ways back into work through advice and guidance, updating old skills or retraining in sectors where women have traditionally been under-represented was a major challenge, it alleged that this challenge was yet unmet through mainstream government programmes. We agree. The drive for a large number of training places, focused particularly on the younger and less qualified, threatens to leave older and/or slightly better qualified women behind. This is both unfair and imprudent, given that most of those who will form the UK's 2020 workforce are already at work and that a significant proportion of these are women. We urge the Government to work with employers and trade unions to make better use of the experience and skills within the existing workforce by ensuring better training and development opportunities for women, whether they work full-time or part-time. (Paragraph 29)

11.  While our Report focuses on occupational segregation and ways to break down some of the traditional barriers, we regard it as equally important to encourage a better valuation of work traditionally carried out predominantly by women if there is to be progress in reducing the gender pay gap. In paragraph 13 above, we have welcomed initiatives to encourage women to take on more senior positions in traditional sectors. We note that the Secretary of State acknowledged the need to ensure that the work traditionally done by women, such as in the caring sector, was not undervalued, and that she also emphasised the role of quality part-time work in achieving an improvement to women's pay, using their skills and experience more fully and raising their status at work. (Paragraph 30)

12.  There is a need for increased pay transparency but, as our predecessors noted, the experience of equal pay audits has been mixed. Some of the criticisms of them would be met if an effective 'light touch' approach were developed. We were encouraged by the description of the prototype 'light touch' check given by the Secretary of State and recommend that the Government, the CBI, the British Chamber of Commerce, Regional Development Agencies and other representative bodies make strenuous efforts to publicise this tool when it is launched generally, so that the use of it swiftly becomes best practice among smaller businesses. (Paragraph 41)

13.  Another important criticism, that equal pay checks were of doubtful effectiveness in making companies take the issue of occupational segregation more seriously, could also be met if pay differences were regarded as a proxy for inequality more generally and the form of the audit required employers to consider wider questions such as why, for example, most women in their organisation were employed in the lower grade jobs and most of the managers were men. (Paragraph 42)

14.  However useful equal pay reviews might be at uncovering problems, in themselves they would not ensure that any problems were tackled. We can see the attractions of the public sector gender equality duty in this regard, with its requirements to publish an action plan, report on progress, and take the actions described in the plan in a specified period. The duty also is not prescriptive about the ways to achieve the stated objectives: it leaves decisions on means to the authority implementing the duty. However, it is too early as yet to judge the success of the duty, which came into force only in April. We recommend that the Government evaluate its effectiveness in two years' time and, if it has been successful, the Government should extend the duty to the private sector. Certainly, if the pay gap continues to decline at such a slow rate, the Government must look at such further measures as the extension of the gender equality duty and consider making pay audits mandatory. (Paragraph 43)

15.  Although the Discrimination Law Review suggested that there were disadvantages to the amendments to legislation which have been proposed by our witnesses, the current law is clearly not working well. There has been such a glut of equal pay claims against local authority employers that neither they nor the tribunal system can manage them; and the heavy involvement of 'no win, no fee' lawyers in this area shows the potential for litigation to spread into other public sector areas including those which have conducted pay reviews, such as the NHS 'Agenda for Change' programme, and through the private sector as well. This can also make it difficult to negotiate agreements to incorporate effective equal pay audits and may discourage employers from embarking on pay structure reviews. More fundamentally, given the number of claims, the law does not appear to be effective in preventing discrimination in the first place. The Discrimination Law Review failed to address these problems adequately. We therefore recommend the Government to look again at the possibility of introducing provisions to allow hypothetical comparators and representative actions, and to simplify the law in relation to time limits for bringing cases, remedies and defences for employers. This would not reduce the difficulty of reaching a fair view of issues like 'equal value' in each case, but it would reduce some of the complexity of the law as it currently stands. (Paragraph 49)

16.  We were particularly concerned that at present there is no obligation on an employer who has lost an equal pay case to ensure that other members of the workforce are being paid appropriately. We recommend that employment tribunals are given the power to order employers to conduct equal pay reviews and act upon the findings. (Paragraph 50)

17.  On the immediate problem faced by local authorities, we recommend that the Government should examine the role played by some 'no win, no fee' lawyers in stimulating claims which further complicate the situation and are sometimes contrary to the best interests of the claimant. (Paragraph 51)

18.  We consider that the Quality Part Time Work Initiative has been under-funded, given the importance of quality part-time work in relation to both reducing occupational segregation and tackling the worse, and more obstinately static, gender pay gap which is that in relation to women's hourly pay for part-time work. We recommend that the Government increase the funding to the initial target of £5 million, and seek the help of the CBI, TUC and similar organisations in proposing initiatives among companies which would otherwise be unaware of or reluctant to try best practice. (Paragraph 54)

19.  The Government said in April 2007 that it will continue to consider the case for extending the right to request flexible working to the parents of older children, taking into account the impact of the extension to carers, and working with business." We agree that the right should be extended in consultation with employers and their representatives; but we believe that while the Government's thinking appears to be limited to parents and carers, this ignores the wider changes in work which mean that more people will change career, have portmanteau careers or wish to work part time at the beginning or end of their working lives, and it also risks leaving flexible working in a (perceived if not actual) ghetto as ' a woman's problem' and a sign of a lack of commitment among nearly half the workforce. We recommend the Government consider a gradual extension of the right to request flexible working to the whole workforce. (Paragraph 58)

20.  In relation to Amicus's suggestion that employees should be given the right to challenge any refusal by their employer to grant a request for flexible working at an employment tribunal, we share our predecessors' view that as yet this has not proved necessary as there has been no evidence of widespread refusal by employers to agree to requests. However, the Government should keep the situation under review. (Paragraph 59)

21.  There are good examples of successful businesswomen who can act as role models. However, progress is patchy and it will take some time before the number of these pioneers increases to the sort of critical mass which makes women top managers and entrepreneurs seem commonplace rather than exceptional in the UK. (Paragraph 61)

22.  There is clearly a need for more training and advice to be made available to managers to give them the ability and confidence to adopt new ways of working and of nurturing talent in order to enable their employees to use their skills, to their own benefit as well as that of the company. We support the CBI's suggestion that the CEHR should make a priority of issuing guidance on what types of actions would be considered discriminatory and what could be seen as positive action. (Paragraph 65)

23.  Given the difficulty of bringing about cultural change, which requires the joint efforts of both trade unions and management, and the success of the union learning representatives, we, are disappointed that the Government's support for union equality representatives appears lukewarm (Paragraph 67)

24.  We welcome the examples our witnesses gave of close working and co-operation in spreading good practice between trade unions and employers organisations. We hope that they will continue to be able to build on this now that the immediate flurry of activity after publication of the Women and Work Commission's report has subsided. (Paragraph 69)

25.  We were told of numerous imaginative and practical initiatives to address gender inequality in the workplace, both within and outside government programmes. However, we are concerned that many of the organisations taking part in government programmes are either companies which have already shown leadership in this area or are in the broader public sector, such as Royal Mail and universities. We hope that best practice will be taken up more widely and recommend the Government, via the Commission for Equality and Human Rights and the department that has the central role in communicating with business, the Department for Business, Enterprise and Regulatory Reform, to make spreading best practice in this area a priority. We would like to see the spread of best practice through the economy adopted as one of the actions both the CEHR and BERR pledge themselves to take under the public sector equality duty (Paragraph 70)

26.  It appears from our short survey that departments are making progress in implementation of the Gender Equality Duty, and that this is leading to actions to promote equality rather than just the establishment of formal processes. However, it is obvious that the pursuit of gender equality through positive action (rather than merely the avoidance of discrimination) is a new departure for some departments, and they appear to find it easier to adopt appropriate policies for their own employees than to examine the effect of their policies on their clients. There are some fine examples of best practice, which have yet to spread. We look to the Secretary of State for Equality to maintain pressure on all departments to catch up with the best. The three-yearly review of the Schemes provides a good opportunity to do so. (Paragraph 76)

27.  It would be regrettable if some of the useful actions undertaken to comply with the public sector Gender Equality Duty were lost as a result of a 'tidying-up' process. There is an argument for introducing a consistent approach to the various equality duties, and the focus of the gender duty on outcomes is the appropriate model. However, this does not mean that there has to be a single equality duty: the barriers faced by different groups vary, as do the solutions which need to be applied. Legislative neatness should not take priority over a flexible approach. (Paragraph 78)

28.  We consider that the advice given by the Office of Government Commerce in its guidance, Social issues in purchasing, is too timid. There appears to be greater scope for public bodies to require of their suppliers not only simple compliance with anti-discrimination legislation, as recommended now, but also demonstration of active commitment to equality principles in the recruitment, terms and conditions of staff. Indeed, we believe that if they do not, public bodies could be challenged as being in breach of their duty to promote gender equality. We accept that it may be easier for larger than smaller companies and for those supplying services rather than goods, to show how they are promoting gender equality, but procurement guidelines already make such distinctions between what it is reasonable to expect of different types of firm. We urge the OGC to review its guidance accordingly. (Paragraph 84)

29.  If, for the sake of certainty, the Government concludes it is necessary to introduce a statutory duty to promote equalities through procurement, the proposed Equality Bill appears to be a good opportunity to do so. (Paragraph 85)

30.  In common with a number of our witnesses, we were disappointed that the Government's initial response to the report of the Women and Work Commission—the Action Plan published in September 2006—failed to commit the Government to providing the money necessary to implement the recommendations, lacked any timetable (however aspirational) by which progress could be judged, and generally gave the appearance of only a half-hearted acceptance of the outcome of the Commission. The one year on report showed that a substantial number of initiatives were in hand, some of which pre-dated the Commission's report, and greater progress was being made than one might have feared from the initial response. However, there was still the appearance of a lack of co-ordination and direction: it was not clear whether the then Minister for Women was able, amidst her other tasks, to maintain oversight of this complex and cross-cutting area. We are reassured by the current Secretary of State for Equality's obvious commitment to this policy and infer from her evidence to us that she intends not only to co-ordinate the efforts of her colleagues but also to keep up pressure on them to take into consideration and address gender equality issues in all their policies and procedures, in relation to both their clients and their employees. To ensure that this commitment is translated into effective practice, we recommend that all Select Committees should see monitoring in this area as being an important part of their remit and that the relevant Select Committee should continue to press the Secretary of State for Equality to give regular reports on progress. (Paragraph 92)


 
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Prepared 9 February 2008