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


Examination of Witnesses (Questions 40-54)

BARONESS PROSSER

14 MARCH 2007

  Q40  Miss Kirkbride: The Commission was cautious on the question of reforming the Equal Pay Act. Could you take the Committee through that because there is still in broad terms men's work and women's work, is there not?

  Baroness Prosser: Yes. I think there is a general recognition that the equal pay for work of equal value regulations are convoluted, to say the least, and lead to tribunals and claims that can go on for years. But, as I said earlier, it was not in our brief to make detailed legal recommendations because the Discrimination Law Review was meeting at the time. Hopefully we will see the results of that review before too long because, particularly with the establishment of the new Commission for Equality and Human Rights, there is a requirement for a single Equality Act—it is a mess at the moment and I would like to see more employers on the bandwagon of demanding that because it is a mess for them. They have an employee that might be a disabled woman—which bit of legislation are they going to look at? They have to look at all of it at the moment, whereas if we had a more streamlined approach it would be much more helpful all round.

  Q41  Miss Kirkbride: So what would your own view be on the Equal Pay Act and the measuring of men and women's work to make sure that there is better parity? Or what has traditionally been men and women's work.

  Baroness Prosser: There has to be some kind of mechanism to value work but the hurdles that you have to get over currently in the equal value regulations with all the assessments and goodness knows what else puts people off and gets people very confused, and that is one of the problems with equal pay reviews; it is all very well to say, "We have men over there doing that and women over there doing that and she is paid as her job has been assessed, so that must be all right, and he is also so that must be all right." An equal pay review is not going to get into valuing those jobs against each other because that is just too much performance, so it will not really, in my opinion, shed a lot more light on whether or not there is real fairness going on. When I was with the T&G one of the responsibilities I had was interviewing people who wanted to become paid officials of the union and we used to travel around the country interviewing very senior shop stewards and conveners who wanted to work full time for the T&G and I used to say to them, "We have had 30 years of equal pay legislation and we still do not have equal pay. What is going on in your workplace?"—"Everyone is paid equally in our workplace. No, no, of course we have equal pay." Do they walk out of the gate with the same money in their pocket? No, of course they do not. And they cannot get their heads around the difference. So there is a lot to be done on that front.

  Q42  Chairman: So the concept of the hypothetical comparator, is that just unworkable or unusable or does it need to be extended so that it covers part-time legislation and so on?

  Baroness Prosser: The requirement for the hypothetical comparator is a real problem because if you look at the way in which contracting out has happened in local government, for example, you have lots and lots of women contracted out to do school meals or cleaning, whatever it might be, lots and lots of men contracted out to do gardening and those people cannot compare their jobs with each other because it is all men doing gardening and it is all women doing school meals, and you cannot use the hypothetical comparator argument. So it is a big issue.

  Q43  Chairman: So you do not have any suggestions that you want to make to us?

  Baroness Prosser: I am assuming that the Discrimination Law Review Group has done all of this.

  Q44  Chairman: Moving on to the future work that we are planning to do, the first area we were looking at was whether we might ask some of the companies that we all meet in the normal course of our work as individual MPs and through the Committee about the position of women in their firms or workplaces, and then we thought rather than us drop a questionnaire we would wait until you came and see if you had any ideas on what sort of questions we should be asking them. If you were a member of this Committee what would you ask companies about their practice and how they would tackle these issues?

  Baroness Prosser: I think one area of interest is how do they recruit people because if you are talking about particular areas of the sectors of the economy, which may be predominantly female or predominantly male, what are those companies doing to try and break down those barriers? Do any of them offer internal adult apprenticeships to women to enable women to change path, a bit like I was saying earlier about women employed in the food industry who are now being given the opportunity to train as food technicians. What sort of upskilling arrangements do those companies have to enable the women they currently employ to move on to bigger and better things? What sorts of arrangements did they have for women returnees to enable women to keep in touch while they are on maternity leave, maybe, or maybe extended leave for caring of one sort of another? Do they have special programmes to enable women to keep up to speed with what is going on in that particular area of the economy, the area of employment? I cannot think of anything else off the top of my head.

  Q45  Chairman: If you do have any thoughts on the sorts of questions we would be asking that would be very helpful to know and you have a chance to come back afterwards. The other area of course we are going to be seeking oral evidence from government departments and inevitably you start off with DCLG, but we then have this issue about why they should be responsible for getting everybody else to do everything and that other government departments need to also be taking a lead. There are those with a clear responsibility, like DfES, who have given us some thoughts on some of the things which we should ask them, and DWP and DTI, but all government departments do have a role in relation to that, so we thought we might send round a questionnaire, and what again do you think we might ask to test whether they are taking their responsibility of giving a lead as a government public agencies?

  Baroness Prosser: Given that there are so many departments which cover so many different areas the big broad question is what sorts of data do they keep about women? If you take the health service, for example, where is the data about different people in different kinds of jobs? Everybody is talking very positively and understandably so about the increased number of women in medicine, but how many of those women are GPs working part-time, maybe, because that is the easiest thing to do if you have a family? How many of those women have managed to move up to become surgeons or consultants because my guess would be that almost all of those women are in the GP side, and that is a good step but it is not far enough. So what sorts of data are they keeping to enable them to monitor how some of these things are progressing? DCA also, for example, with solicitors, are they keeping an eye on newly qualified women solicitors or women barristers, how they are moving forward and what the opportunities are there and what opportunities may be being missed?

  Q46  Chairman: The other area we thought we might pursue was government departments which have huge public procurement responsibilities, which also ties into an inquiry our overall Committee is doing on the manufacturing industry and public procurement is one of the aspects of that. We did have an interesting exchange with one of the European officials when we were there who did not really seem to get us asking about whether it was legal to impose conditions on people from whom you are procuring in relation to, for example whether they were implementing the new gender duty. Are there areas there where, from your knowledge, we could be seeing guidance from government departments on how we deal with public procurement?

  Baroness Prosser: Absolutely. I think it is very important and I should have mentioned it earlier, perhaps. We held a round table on procurement as part of our evidence taking and the Office of Government and Commerce could not get the argument that maybe it was good for people to have some sense of equality and equality of requirements contained within their modus operandi, if you like, and at that meeting were representatives from the Greater London Authority, who were doing this all the time. They have big requirements on equalities, on training, on health and safety for the contracts which they put out for London Underground, for example, and other London-based organisations. If they can do it I do not see why anybody else cannot, and there was somebody there, an academic whose field this is, and he was arguing that this is not a problem. The Office of Government and Commerce were saying, "We have to fall in line with all of this because this is what Europe requires of us," and the opposite view was, "Nonsense, you can do it, you are just being too tight-lipped about it all." So I think it is a very big area, there are huge amounts of money spent and what we always used to call contract compliance has been long forgotten, and it is a pity.

  Q47  Chairman: One of the areas of evidence we have is from the Greater London Authority, which obviously has a long history of in the past having wished to pursue those issues, so we might pursue that a bit further.

  Baroness Prosser: Yes.

  Q48  Chairman: Just a final, maybe broad question. Earlier on, or threaded through the evidence really, you talked about the impact on the economy, the loss of skills that we are losing, and obviously as a trade and industry and economic Committee the whole issue of the relationship between this issue and the economy and health of the economy and the waste of skills is a very critical issue and there was a report from economists at the IMF showing the lost growth around the world of billions of pounds from not implementing gender equality issues. For us that is clearly an important issue in relation to our broad remit as a Committee, but do you have any thoughts on how we can promote that as an issue, that this is not just a moral question, a question of fairness, it is an issue that is a serious economic issue. Is that something that Commission addressed at all—

  Baroness Prosser: We have included that in our report.

  Q49  Chairman: And how would you think we could pursue that?

  Baroness Prosser: I think I am right in saying that we determined, "The Commission estimates that removing barriers to women working in occupations traditionally done by men, and increasing women's participation in the labour market, could be worth between £15 billion and £23 billion or 1.3 to 2.0 % of GDP." So that is a lot of money. That does not include such increased tax and national insurance contributions that would come from women who were earning more, it simply is an estimation of how much more could be contributed to the economy if they were in levels of employment which they themselves have determined they would have the ability to do and to cope with.

  Q50  Chairman: How widely do you think that argument is accepted and understood within government or within the economic players, employers and so on?

  Baroness Prosser: This report was widely pored over by Number 10 and Number 11. The Chancellor of the Exchequer invited himself to the launch, which we were very pleased about, but, for reasons of space and all sorts of other proprietorial niceties, he was not on the original list, but he wanted to come along and we were, of course, very pleased about that. He would not have wanted to come along if there was anything contained in the report that (a) he did not agree with or (b) he thought was going to make him a hostage to fortune. I can only conclude from that that he is quite comfortable with this point and I would hope that it encourages his department to continue to recognise that upskilling and retraining of women to enable them to participate at an appropriate level is good for women and families and good for the economy generally.

  Q51  Chairman: That is extremely helpful. Can we ask you, you know we are going to be carrying on with the inquiry, is there anything that you feel that you have not covered or other issues that you feel we need to jump on and keep pushing on?

  Baroness Prosser: I do not think so, thank you. You are going to be calling DOC, TUC and CBI and they will be able to hopefully say a number of the things that I have said and some of it will be a bit different and different angles. Of course, DOC has lots of research evidence of detail about these things, but I am grateful to you for conducting your work and for asking me to come along because it is another measure of keeping the show on the road.

  Q52  Miss Kirkbride: I remember one headline we saw a few weeks ago which we all remarked upon and I wonder what your take was, which was the figures on women in the boardroom had gone backwards and the underlying assumption for this was that they were all going out to work for themselves instead of starting their own companies, and I wonder if you had any observations or further thoughts on that.

  Baroness Prosser: There is a lot of evidence which says that women are starting their own businesses because either they are not prepared to face what some of them see as a daily grind at that level, or they are being ignored and not being enabled to reach the level that they see is appropriate. I hope that business takes this as a big wake-up call to them because it is an enormous loss of talent. I sit on the board of Royal Mail, there is now one other woman who sits on the board who is a non-executive director with a financial background but everyone else is male and much as I must say I really thoroughly enjoy the work, masochist that I must be with the problems that Royal Mail has got, I am extremely fortunate in the sense that the men who are there are very much of the view that as long as you demonstrate you know what you are doing then they are really pleased to have you along. There is not a closed atmosphere about it. For all that, all their conversation is based around, "We need a good chap for that", it just comes naturally and if there is not a woman in the room to pull these blokes up sharp sometimes, they bowl along without thinking.

  Q53  Miss Kirkbride: And discussing football all the time!

  Baroness Prosser: I have to put a stop to that.

  Q54  Chairman: That is a good end, it shows us what we are up against. Thank you very much for coming. You have given us a lot of thought to sharpen up the questions that we need to go on and ask of other witnesses and hopefully it will help sharpen up the debate around your report and recommendations to us. We are very grateful to you for giving us your time, even though you have only had to come down the corridor, but thank you very much indeed.

  Baroness Prosser: Thank you very much.





 
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