Women in the Workplace

Response of the Equality and Human Rights Commission to the Consultation :

 

Consultation d etails

Title:	Business, Innovation and Skills Committee - First Report: Women in Workplace
Source of consultation:	House of Commons: Business, Innovation and Skills Committee
Date:	16 August 2013

For more information please contact

Name of EHRC contact providing response and their office address:
Dr Karen Jochelson Director of Employment and the Economy Equality and Human Rights Commission Fleetbank House 2-6 Salisbury Square London EC4Y 8 JX
Telephone number:	020 7832 7842
Mobile number:
Email address:	Karen.Jochelson@equalityhumanrights.com

The Equality and Human Rights Commission welcomes the Business, Innovation and Skills Select Committee report on Women in the Workplace published on 20 June 2013.

Women in Britain are better educated than ever before and yet they still do not achieve parity with men in the workforce. Job choices are still highly gendered ; the pay gap has declined but women are still likely to earn less than men; and women do not enter senior roles at the same rates as men.

If Britain is to make the most of its human talent, then we need to continue to improve ways of opening up work place opportunities to women. The Commission supports several changes introduced by Government that may help even the playing field. The extension to the right to request may remove the assumption that employees with caring responsibilities are less committed to their employer . N arrative reporting on gender representation and human rights will make company activities more transparent to customers, shareholders, and employees . And many listed companies have increased the numbers of women on their Boards to meet Government’s voluntary target.

However, t o ensure women have similar opportunities to men in their working lives, girls need better guidance around career choices and access to apprenticeships , workplaces need to encourage flexible working and find ways of retaining employees with caring responsibilities so that women who want to work or want to work more hours, can do so , and employers need to consider how to improve their recruitment, retention, promotion and pay so that women have the same opportunities and rewards as men.

This document sets out the Commission’s responses to the Committee’s recommendations relevant to the Commission.

Stereotyping of jobs and gender representation

Schools and Careers advice

Recommendation 3: At the heart of the issue of career aspirations for girls and boys is the need to have a cultural change through the educational system, at the point when pupils make subject choices. In this respect, we support the recommendations set out in the Women's Business Council's recent Report. We recommend that the Government develops an enhanced careers strategy, based on partnership working between the National Careers Service, the Equality and Human Rights Commission (EHRC), the National Apprenticeship Service, the UK Commission for Employment and Skills, the Department of Education, and the Department for Business, Innovation and Skills. Such a strategy must include firm targets and regular review processes to ensure that progress is maintained and is consistent across all parts of the country. The Government should also engage, where appropriate, with the devolved administrations, so that best practice can be shared. Within this Government-led strategy, there should be strong business-led engagement with this process. (Paragraph 28)

The Commission welcomes and supports the recommendation for an enhanced careers strategy to tackle gender stereotyping and segregation, delivered through a partnership of key organisations. As indicated in our evidence to the Select Committee , the Commission recently completed a programme of work on careers advice for young people . This comprised of research highlighting the importance of targeted careers work to tackle stereotyped careers aspirations, choices and destinations , [1] and a resource for primary schools to support equality in careers-related learning for KS2 pupils , Equal Choices, E q ual Chances .     These identified key policy and practice interventions for tackling stereotyped choices, some successful case studies of partnership working, and some classroom teaching resources for raising aspirations and widening choices. The Commission is keen for these materials to be used more widely as part of an enhanced career strategy, and to work collaboratively with partners to support its delivery.

Apprenticeships

Recommendation 4: The Government is committed to improving the representation of women on boards, and has set specific targets for such an increase, and progress against the Davies Report has been encouraging. The Government should demonstrate the same commitment and leadership in the area of Apprenticeships. It should set targets for encouraging more women into Apprenticeship sectors where they are currently under-represented, and consider, where appropriate, how Apprenticeship funding can be used to support such a shift in gender representation. There should be publically-available data on the types of available Apprenticeships and funding, and what successful apprentices should expect in terms of careers and salaries. We repeat the recommendation in our Report into Apprenticeships: the National Apprenticeship Service (NAS) should be given specific responsibility and accountability both to raise awareness of Apprenticeships among under-represented groups and to promote positive action measures available to employers when employing Apprenticeships . (Paragraph 33)

The Commission fully supports the Committee’s recommendations to Government calling for targets to encourage women into Apprenticeship sectors where they are currently under-represented and to consider how Apprenticeship funding can be used to support a shift in gender representation. We similarly endorse the recommendations for the National Apprenticeship Service (NAS) to strengthen their role in helping to increase the numbers of under-represented groups in Apprenticeships.

Earlier this year, the EHRC published a report looking at Modern Apprenticeships i n Scotland covering gender, race, disability and other groups with protected characteristics. It contains an analysis of the most recent diversity data for Modern Apprenticeship (and their equivalent) schemes across England, Northern Ireland and Wales .

In England, male participation in "traditionally female" apprenticeships is rising far faster than women's access to "traditionally male" apprenticeships, indicating persistent barriers to the employability of women in certain sectors.

We recognise there are some differences in Scotland and England with regard to Moder n Apprenticeships and Apprenticeships ; however , t he recommendations for Scotland have relevance for England ( Gove rn ment and the NAS), in particular:

· Targets for greater access to Modern Apprenticeships for (some) ethnic minorities and women need to be made explicit in commissioning documents and economic development aids of Government (and their agencies)

· These targets need to be monitored and their attainment made a condition of funding by government.

· Full data on the performance on equality in ( Modern ) Apprenticeships and economic development need to be reported as mainstream management information open to public scrutiny

Apprenticeships feature in the Commission’s Business Plan for 2013/14. In particular, we aim to focus on achieving:

· more diverse groups of young people securing apprenticeship places

· clarity on the extent to which Government public procurement and economic development aid can be used to support the aims of the Public Sector Equality Duty (General Duty) in England, Scotland and Wales

· encourage central and/or local government to use procurement as a lever to improve employability of protected groups and opportunities for employment.

Equality legislation and equal pay

Equal Pay Audits

Recommendation 12: We welcome the Government's proposal to give tribunals the power to require an employer to undertake an equal pay audit when discrimination has been proved. However, there is existing legislation addressing inequality in pay that has not yet been implemented. The Government should introduce regulations under Section 78 of the Equality Act 2010, to require large private sector employers to undertake and publish equal pay audits. That data could then be used to highlight where pay gaps exist. (Paragraph 63)

Recommendation 13: The Equality and Human Rights Commission (EHRC) should make public those businesses that are non-compliant under Section 78 of the Equality Act 2010 , as well that those examples of equal pay best practice in the private sector, to show that equal pay is good for business. (Paragraph 65)

The Commission understands that Government is keeping s78 under review and in the meantime, is supporting Think , A c t , Report as an alternative, voluntary, business-led approach .  

The Commission acknowledges the achievements of the Think, Act Report initiative to date as it has served to show c ase the positive work that companies in the UK are doing to tackle gender equality , for example:

· AstraZeneca has set targets for 2015 to improve female representation at senior manager level and abov e from 38% (2010) to 43% (2015) .

· The Met Office launched its diversity declaration in 2012 to enable it to better understand the diversity of its employees. Since then, it has reduced its gender pay gap from 10.1% to 9.2%.

These examples suggest that individual companies can make progress in improving gender representation and reducing their pay gaps. However, the Commission’s recent statistical briefing on the gender pay gap shows that the full-time and especially part-time pay gaps continue, and that the differentials are more pronounced in particular industries.

The Commission supports Recommendations 10 and 11, which urge Government to promote the Think, Act Report initiative more widely and to review its impact on pay differentials.

To support employers, the EHRC has published guidance about equal pay:

· Part Two of the Code of Practice on Equal Pay (2011) sets out good equal pay practice including a 5-step model for carrying out an equal pay audit.

· Online guidance about equal pay and audits is available for large and small employers, including a Quick start guide to providing equal pay for SMEs endorsed by the British Chambers of Commerce.

In r ecognising the impact of business leading by example, t he EHRC has support ed the development of the business-led N ational E quality S tandard (NES) . The Standard sets clear equality, diversity and inclusion (EDI) criteria against which subscribing companies will be assessed and i t is hoped that the NES will become the accepted standard for business across the UK and that its adoption will produce a s ignificant and lasting impact on the way equality, diversity and inclusion is integrated into everyday business. There are seven components to the NES focusing on areas such as equal pay, flexible working and unconscious bias.

Should Government decide to adopt the Committee’s recommendation (Number 12) to introduce regulations under Section 78 of the Equality Act 2010, the Commission believes it would be necessary for Government ( and the Commission ) to consider what resources would be required to monitor compliance with the regulations . For example, r ecent BIS figures (Oct 2012) suggest there are 6 , 000 private sector businesses in the UK with more than 250 employees and therefore, the size and scale of such an undertaking should not be under-estimated . The Commission would wish to participate in such a review and draw on recent experience of monitoring public sector organisations’ compliance with the Public Sector Equality Duty .

Public Sector Equality Duty

Recommendation 15: The Equality and Human Rights Commission needs to improve its performance in relation to the monitoring and assessment of compliance of the Public Sector Equality Duty. It should use its powers to issue compliance notices to those public bodies that have failed to comply with the PSED. The Government should give a clear statement of support for the EHRC in exercising these duties. (Paragraph 71)

As the regulator of the PSED, the Commission places a strong emphasis on transfer of expertise, including through a range of guidance for public authorities. We aim for a proportionate approach to enforcement, promoting compliance through informal action and co-operation with public authorities as the preferred option, using formal legal powers only when attempts to encourage compliance have failed.  Where necessary, we can use the power to issue compliance notices in relation to the general duty and the specific duties – although for the general duty, a formal assessment of compliance must first be carried out. 

The Commission has recently undertaken assessments of public authorities’ compliance with the two specific duties for England: the duty to publish equality information and the duty to set and publish equality objectives.  Further research is planned to explore the conditions, drivers and barriers for public authorities to deliver effective PSED outcomes. In parallel, work will be undertaken to identify effective approaches and practices by English public authorities using the PSED to deliver tangible equality outcomes. 

In May 2012, the Government announced a review of the PSED review group to assess whether the equality duty is operating as intended. The EHRC is currently awaiting the publication of the review’s report and recommendations and the Government's response.

Small and medium businesses (SMEs)

Recommendation 24: The Equalities and Human Rights Commission needs to take a more active role in supporting and advising SMEs, in relation to the issue of flexible working. Many SMEs are exemplars of flexible working, which benefits both the business and the staff, but others lack the knowledge to utilise flexible working successfully. The Government should invest resources in advising small and medium businesses, of the benefits of recruiting and retaining flexible workers, and it should highlight the work that organisations such as the Federation of Small Businesses do to promote the positive benefits of flexible working. (Paragraph 102)

The Commission acknowledges that we need to take a more active role in support and advising SMEs, both on specific issues such as flexible working, but more broadly on equality and human rights. To this end , we are considering various proposals to be agreed by our Board and funded from a Programme Fund agreed with the Government Equalities Office in two areas:

· SMEs understanding of equality legislation and human rights, and their application to business practices

· Employer understanding and practice around pregnancy, maternity and return to work

Maternity leave and childcare

Parental leave proposals

Recommendation 26: We recommend that the Government collects data on pregnancy discrimination, in order to monitor its incidence, from the position of both employees and employers. This should be done in conjunction with our previous recommendation that women with pregnancy discrimination cases should not have to pay the proposed £1,200 tribunal fee. (Paragraph 110)

The Commission welcomes the Committee’s recommendation for Government to collect data on pregnancy discrimination as there is widespread anecdotal evidence that this continues to be a serious problem. T here has not been any in-depth study on pregnancy and maternity discrimination since the widely cited research undertaken by the Equal Opportunities Commission in 2005 .

The Commission is currently exploring appropriate routes to gather additional data on pregnancy discrimination . Any research will need to examine the scale and types of discrimination experienced by women who are pregnant, on maternity leave or returning to work, their knowledge about their legal rights and remedies, and the knowledge and attitudes of employers.

Equality and Human Rights Commission

Proposed changes to the EHRC

Recommendation 27: We welcome the fact that the Government reconsidered its intention to repeal the Equality and Human Rights Commission's general duty, as set out in Section 3 of the Equality Act 2006. However, we remain concerned at other Government measures that are weakening the EHRC's ability to carry out its general duty. In this Report, we have recommended that the EHRC should be providing: enhanced information and advice covering career strategies; equal pay audit and equal pay best practice advice; the monitoring and assessment of the Public Sector Equality Duty (PSED); data transparency advice; and support to SMEs. Funding is tight, but if the EHRC is to carry out all of these activities effectively, it needs to be better resourced. We welcome initiatives such as the EHRC's recent work with the meat and poultry industry, and recommend that that EHRC actively seek funding from other private business sectors for similar funding. (Paragraph 117)

The Commission building on its work with the meat and poultry processing sector through a new project to improve protection for vulnerable workers in the cleaning industry . . Workers may be vulnerable as a result of their precarious employment status, due to the prevalence of agency work, zero hour contracts or bogus 'self employment'. Protected characteristics can increase this vulnerability, and certain protected groups, such as women or migrant workers are over-represented in the cleaning sector. The aim of this project is to improve protection for vulnerable workers through better working conditions and increased knowledge of employment rights.

We will follow the model of our meat and poultry processing sector work. We will gather evidence from cleaning firms, organisations that contract out their cleaning functions in both the private and public sector, unions, agencies, regulatory bodies and organisations such Citizens Advice. Gathering evidence from a wide range of stakeholders will ensure that we gain a full picture of the sector, and hear about the challenges facing workers and businesses alike.

We will then invite the main stakeholders in the sector to join a taskforce whose focus is to identify and implement solutions to any issues identified. This consensual sector - led approach led to improvements in the recruitment and employment practices in the meat and poultry processing sector.

Due to the need for the Commission to maintain its independence as a regulator we do not seek funding from businesses for our inquiries or wider policy work of this nature. Instead we seek to build engagement and commitment from businesses to introduce practical improvements.