More than 50 years after the Equal Pay Act 1970 came into force, the fight for pay justice for women continues and it’s growing bigger, stronger and louder than ever before.
As GMB’s Rhea Wolfson described on Women’s Hour last week, women across the UK are standing up and speaking out against pay discrimination – from Birmingham and Coventry to Dundee and Fife. Low paid women workers, supported by their trade union, are campaigning and organising to take back the wages that have been stolen from them.
Just weeks ago, Birmingham City Council issued a Section 114 notice, admitting the council cannot balance its budget after announcing they owe to up to £760 million of equal pay liability to their workforce.
It is a shameful fact that in 2023 women are still facing hundreds of millions of pounds of unpaid wages, while having to fight a slow and broken justice system, loopholes from greedy employers and a government who want no part in addressing the systemic discrimination of women in this country.
Equal pay is a woman's right to be paid the same as a man for comparable work, work rated as equivalent, or work of equal value. It zooms in on specific comparisons, scrutinising every aspect, from base salaries to bonuses and pensions. It's about ensuring that gender doesn't play a role in determining one's pay cheque.
To protect this right, individuals are forced to rely on "comparators." Unlike other discrimination claims, equal pay claim comparators are required to be real people, employees who work or have worked for the same employer. Identifying the right comparator is integral to any equal pay case.
The current law doesn't allow for "cross-employer comparators". Employers can outsource employees to evade equal pay claims, creating an effective barrier against pay justice. This sinister practice not only perpetuates pay disparities but also fuels gender segregation in the workforce, with low paid women often paying the price.
GMB is calling for legislation to allow for cross-employer comparators, a move that would see a shameful loophole for employers closed once and for all.
To address these issues, legislative changes are needed. We believe that introducing a new Equal Pay Act, designed to fit the challenges of 2024 and beyond, could be the way forward. Perhaps it's time to revisit the idea of a "hypothetical comparator," inspired by early equal pay principles, to bring about a more equitable future.
Enforcement, too, requires radical transformation. Currently, equal pay is treated as a contract matter, necessitating individuals to sue their employers – an arduous task, especially when coupled with the need to find the right comparator. It's time for a new Equal Pay Executive. A body with the power and obligation to monitor and investigate equal pay concerns. This would provide a viable alternative to individuals caught in a lengthy court system.
Why does all of this matter? Because equal pay is not just a legal concept; it's a matter of justice. GMB has shown in recent campaigns that women are owed extraordinary sums of stolen wages - money that could be a transformative force in our society. Money in the hands of women workers strengthens communities and boosts our economy, far more than when hoarded by big businesses. The days of local government and big business balancing the budgets and making profits off discriminatory pay practices must end. We cannot accept our public services being run of the backs of low paid women in schools, in care homes and delivering care in our communities. We also cannot accept big businesses like Asda running up profits as they underpay thousands of women in their stores.
Yes, there are costs involved, but they are an investment in justice and equality. Legislative changes may seem daunting, but their positive economic impact on the country is undeniable. A new regulatory and enforcement body would be a relatively small price to pay compared to the colossal settlements that result from equal pay claims.
In the end, equal pay is not just about money; it's about dignity, respect, and a future where gender is no longer a determinant of one's worth. It's about closing the Gender Pay Gap and ensuring that everyone receives their fair share.
It's a cause that thousands of GMB members are fighting for, a path towards a brighter and more equitable future for all.
Megan Fisher, GMB Union's Women's Campaign Unit