Select Committee on Business, Enterprise and Regulatory Reform Minutes of Evidence


Examination of Witnesses (Questions 20-39)

BARONESS PROSSER

14 MARCH 2007

  Q20  Dr Berry: Finally, on the government's Action Plan, some people have said—perhaps perfectly reasonably—that one of the reasons the Action Plan is a bit vague and non-committal in detail is that there are public spending implications on all of this, and with the Comprehensive Spending Review being in preparation in fairness there was a limit to what could be said in terms of very specific commitments that involved public expenditure. To what extent do you think your recommendations could be achieved without significant extra resources? Is there an argument that a lot of what you recommend, without people needing to worry too much about spending, is simply about the political will?

  Baroness Prosser: I think there is a great deal that could be done with political will and some of it is about redirection. For example, the Trade Union Modernisation Fund, we recommended that there should be a specific fund for training equality reps in the workplace and DTI has been complaining for some considerable time about how strapped it is for cash, and so what they did—which was not terribly pleasing to everybody but was, I suppose, the best they felt they could do at the time—was to redirect monies from the Trade Union Modernisation Fund to be specifically allocated to training the equality reps, and there has been one round of claims under that and another round which I think concludes in April, and the T&G, the NUJ and Wales TUC have all started doing the equality rep training arising from that money. So that was a redirection, if you like. Speaking to people in the education service—not in DfES but from schools and from the education unions—they say that work experience and careers guidance will not really improve until there is a recognition that those jobs should be more specific and funded in a more specific way. So at the moment, for example, the responsibility for work experience is just tacked on to the responsibility of a teacher who has to do something else. So if it is not taken seriously at that level then we cannot really expect the teacher to do too much about it. So I do think more funding there would have been helpful. But of course the £40m from the budget was very, very welcome, and the specific training that is going on at the moment, I guess, would not be happening if there were not that extra money for it.

  Q21  Miss Kirkbride: You touched on this earlier, about exemplar employers. Do you want to give us any more details about that? You said there were 100 of them.

  Baroness Prosser: There is over 100 of them.

  Q22  Miss Kirkbride: Does any one stand out as to what they are doing, so that you can inform the community?

  Baroness Prosser: I can give you a few examples of things that people are doing. For example, Cranfield University is developing a work experience project and that is targeted at local schools so that they are doing that. Friends Provident has a big investigation going on to try to determine why it is that more women are not moving up into senior management and they have a staff survey going on to analyse all of that. The Royal Mail, for example, has a big Springboard training programme going on, which is training women who are working in the sorting offices to become junior managers and then another programme to get junior managers up to senior managers; and in Post Office Limited, which is a separate company within Royal Mail, they have a very big women's network that is funded by the company, and a buddy system for women who are more senior to help those who are coming forward. Staffordshire University is doing an equal pay review. The University of Southampton has a women and science network, so there is a whole variety of different things going on, and a number of the companies involved are the very big corporates, like Shell Oil, the Ford Motor Company, BMW, ABB Engineering—quite big organisations as well as numbers of public sector bodies of course.

  Q23  Miss Kirkbride: They are doing things similar to what you have described at the Post Office?

  Baroness Prosser: Yes.

  Q24  Miss Kirkbride: So do you see that as a model for better practice that you would like extended to certainly plc companies—or all companies—that would be easier in some ways?

  Baroness Prosser: I think more and more businesses are beginning to recognise that there is an enormous waste of talent going on. There is a shortage of skills in the country and they also recognise that their businesses should reflect rather better the people that they try to serve, so if you have a business that is largely aimed at women and it is entirely run by men people are beginning to FALL in that that is maybe not the best business practice. So there is all that going on on that side, so it is in their interests really at the moment to try to improve things. Then the lessons that will come out of each of these companies and the best practice that is exchanged will be produced as guidance by Opportunity Now and it will be up to us to come and stand behind that and make sure that it continues to move forward. The one thing that I am really afraid of is that all of a sudden there will be another recession and nobody will want so many workers any more and we all know who will be out of the door first, really, so I am slightly anxious. We need to get to critical mass before such a thing happens.

  Q25  Miss Kirkbride: I suppose that is probably what you would hope employers and trade unions are going to do, with your report, to take this up.

  Baroness Prosser: Absolutely.

  Q26  Miss Kirkbride: Is there anything else in your report that you think they could do?

  Baroness Prosser: The mention of trade unions, I would like to see unions being more proactive in the workplace and asking more questions about why it is that women continue to lag behind, why it is that somehow or another men get these jobs and women get those jobs. You do not need an equal pay review when you walk around a trade union organised workplace to determine who is earning what; you can see it. I would like them to be more proactive to encourage employers to monitor who gets what of the training budget, why is it that the training budget always goes to the most senior staff, almost all of whom will be men? Why do those part time women not get more training money allocated to them? Why are not requests for flexibility, extended leave or whatever it might be, monitored more carefully so that it can be determined whether or not a particular manager is behaving fairly as against the behaviour of another manager? But quite often in work places that are scattered or large the answer you get to a question in one part of the workplace would be completely different to the answer you get in another part, despite the fact that the national policy of the organisation might be very progressive and helpful; and yet nobody monitors these things, so it is all a bit happenstance. So there are a number of easy things really that unions could buck up on, frankly.

  Q27  Chairman: Following on from that, it is very gratifying now that when the TUC comes to give evidence we have very senior women there coming and doing that.

  Baroness Prosser: Absolutely.

  Q28  Chairman: But as I am sure at some stage we will be seeing the TUC, from your inside knowledge are there any pointed questions or issues that we should be putting to them about their own practice, both in terms of themselves as employers and themselves as representatives of the workforce, and what they should be pursuing?

  Baroness Prosser: The TUC policy has been—and I have no quarrel with this—that we should have recommended statutory equal pay reviews, and at the Commission we could not agree on this so we agreed to set out the arguments for equal pay reviews without making a case for legislation to back them up—that was where we found ourselves. First of all, in a trade union organised workplace unions can of course negotiate to get equal pay reviews conducted so it would be interesting to know just how many are going on and how many have been either conducted or in the process of so being. It would also be interesting to know just how many training agreements are in place, which include the upskilling of women, and there will be some good examples but there are lots and lots more places where lots more could be done. Then the whole question of equality reps; I do not think that an equality representative should be a substitute for the shop steward. When we were taking evidence at the Women & Work Commission a number of equality reps came to see us and we had a round table and they came from all different unions, my own included, but I found it a very disappointing session because they were doing the equality work that the shop steward was not interested in—"Oh, there is a woman's problem over there," but actually it is a workplace problem, it just happens to be a woman who has it. Equal pay is a workplace problem, it is not specific, and it is not something that should be thrown over the shoulder. My idea of equality reps is that they should be proactive, they should be working with the union and with the employer to identify ways in which opportunities for women in that workplace could be improved or measured, or data collected to determine exactly what is going on and how things could be shifted. So it would be interesting to know if the TUC is still supportive of that approach.

  Q29  Chairman: Are there any other questions that we should be asking trade unions about their own practice?

  Baroness Prosser: Lord above!

  Q30  Chairman: It is your opportunity.

  Baroness Prosser: You can certainly ask them about their own practice. In my personal experience it leaves a great deal to be desired.

  Q31  Chairman: So they follow the same pattern as the rest of society?

  Baroness Prosser: Yes. I will not say more than that.

  Q32  Chairman: Going back to employers, the examples you gave were mostly quite large employers, were they not, and I know that within your report you did also talk about issues relating to small firms and some of the difficulties, and I think that was one area where the government has not in its recommendations gone as far as you would have liked. Would you like to say something on that and what you think we should be pursuing?

  Baroness Prosser: I think it would do no harm if you asked representatives of the small business service to come and talk to you about what they are doing. I recognise absolutely that the issues for small business can be quite tricky and they have a complete fear of the legislation which gives maternity rights and paternity rights—how can they manage when they only have four and a half staff, or whatever it might be, and these are real issues to be addressed. But they are not addressing them at the moment, they are just afraid of them. Many, many women work in small firms and somehow or another it would be useful to get some ideas from them about ways in which we can start stepping forward in this area.

  Q33  Miss Kirkbride: If you were they what would be your answer to that, given the very practical difficulties of four and a half staff in the business and one goes off?

  Baroness Prosser: Lots and lots of jobs can be done in very different ways; lots of jobs do not require nine to five attendance at the workplace. So trusting employees to work in different ways, and starting that process before it is thrust upon you I think would be a help to them. They do get repaid for maternity leave so it is not such a financial burden as they seem to think. We have a big problem in this country that small enterprises do not grow into bigger enterprises; we have lots and lots of small firms, not so many of the small and medium enterprises, and if they want their companies to grow they have to embrace modern society. It costs them more to employ people; to train people, bring them in and then do that all over again than it does to work out ways in which they keep those folk.

  Q34  Miss Kirkbride: You just answered to Judy the question of compulsory equal pay audits, upon which the Commission did not agree. In your opinion do you think progress can be made unless they were brought in, without them?

  Baroness Prosser: I think it is interesting that the people who pressed most hard for compulsion was the trade union group and actually within trade union organised companies it is not such a problem, I do not think, because the pay and grades are negotiated, it is much more transparent in the union-organised workplaces. The areas where it is a problem are areas where pay is not transparent, largely speaking right at the top of law firms or city finance, those sorts of places, over which the trade unions do not have any influence at all. So I found that odd positioning. I do not think that those major companies would ever make their systems transparent unless they were forced to.

  Q35  Miss Kirkbride: That is an interesting point you have raised, is it not, because law firms, accountancy firms are unlikely to be unionised, partly because of their structures in partnerships and things, so who would do it and how would you allow for the confidential commerciality, which is reasonable in those circumstances, whilst reassuring the women staff that they were being paid fairly in comparison to their peer group? What mechanism could be used for those kinds of companies?

  Baroness Prosser: Certainly the major firms all have HR departments and pay systems that are computerised.

  Q36  Miss Kirkbride: But who would be in charge? How transparent then would that information be on the issue of confidentiality?

  Baroness Prosser: The mechanism of conducting the review is not too tricky. What you would then do with the information is the next step, of course, and I think it is a bit of a stretch to say that these things are commercially confidential. I would like to see that tested; I do not really think that that could be seriously argued.

  Q37  Miss Kirkbride: It might be tricky if all these firms compete with one another, they might not necessarily be keen on the other companies knowing their pay structures?

  Baroness Prosser: Of course what they have at the moment, if you look at law firms, they all have the same problem, that women leave. So they all know that it is a big issue, and I guess under the surface that the most senior lawyers at Clifford Chance will know what the senior lawyers at Simmons are earning. These are quite small fields anyway, are they not? I think the big problem for them is partly that it is about who gets paid what, but more it is about the requirements that are laid upon people who want to get to the top or who the company wants to get to the top—24 hours a day is not too much of an exaggeration really. If you go to the Clifford Chance offices in Canary Wharf you could move in there and live there for six months—you would not be deprived of anything, everything is available.

  Q38  Miss Kirkbride: Just bring your toothbrush.

  Baroness Prosser: Yes, and they expect people to spend hours and hours and women either cannot or do not want to do that. But they are losing a lot of talent. Clifford Chance is one of the exemplars and has joined us as an exemplar.

  Q39  Miss Kirkbride: What are they doing, out of interest?

  Baroness Prosser: I do not know to be truthful and I cannot answer that in detail, but hopefully when we have the exemplars' conference we will be able to learn more.



 
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