Ethnicity Pay Gap: parliament debate on mandatory reporting to take place in September

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by Mayowa Ayodele

If you're a regular visitor to the OBV website, you're probably aware of grassroots efforts looking to see firms disclose their ethnic pay gap. Another step to making that a reality has been taken this week with a date for a parliamentary debate now set for 20 September.

The news was confirmed by the campaign's founder Dianne Greyson who pledged to continue working to ensure anything enacted into law was 'fit for purpose'.

The push to have legislation in support of the ethnicity pay gap has been supported by a number of organisations of which OBV is one. In her address, Greyson thanked the Fawcett Society, Black and Asian Lawyers, Equality Trust and Spktral as being among several groups to support the cause. 

Patience wins but can 'political will' change?

The debate in September has been a long time coming. It will finally arrive after three years of constant campaigning from the Ethnicity Pay Gap campaign team and similar work from affiliated campaign groups dating further back. A petition calling for its mandatory introduction went live last year. By the time the petition closed after six months, it had gained 130,567 signatures. 

The support from the public has been there, but the political will to push through change has lagged behind. This is especially pertinent given April's Race report. Its reception has meant that critics will continue to question whether a government unwilling to acknowledge the realities of systemic racism can be trusted to follow through with policy aimed at dismantling it. 

“Introducing these measures will allow employers to be held accountable in closing the gap where there is disparity. In order to achieve a fairer workplace publishing, this data is one of the next steps to knowing how extensive the issues are from a race and ethnicity perspective and not just through the lens of gender.”

Ethnicity Pay Gap petition, 2020

Progress mirroring Gender pay gap legislation?

The reference to gender is a common one. While there is still much to be done to address its reporting, comparisons (for better or worse) between the two are frequent (such as on the new colourofpower website). Currently, companies with over 250 employees must reveal their gender pay gap, removing the option of voluntary engagement with the issue. 

The decision by the government to suspend gender pay gap reporting amid covid difficulties, and the directive to delay its reporting till October of this year will attract naysayers questioning how big an impact mandatory reporting can have if it is still subject to such disruption. However, this shouldn't undermine why campaigners are pushing for it. Women in Advertising & Communications Leadership cite a study that argues there has been a meaningful influence on reducing wage gap differences, even if the forces driving this transformation could be stronger.

A recent study of the introduction of mandatory gender pay gap reporting in the UK found that it has narrowed the gap between men and women because of a 3% decrease in men’s hourly pay and resulted in a 5% increase in the probability of women earning above-median wages. The study also found evidence that the reporting resulted in occupations with higher gender pay gaps demonstrating more women-friendly hiring practices.

Women in Advertising & Communications Leadership

At local level, some authorities have taken the initiative to begin reporting on their own ethnicity pay gap. Nottingham council did so as recently as last week. The report revealed that individuals termed as 'minority ethnic' employees in the UK earned 92p for every £1 earned by their white counterparts. The TUC, CBI and the ECHR have also joined the call for mandatory pay gap reporting to be introduced.

Nevertheless, tangible progress is needed to avoid the celebration of a false dawn. This means progress not only in reporting of the pay gap, but crucially, in ensuring efforts to narrow it result in a material benefit for individuals termed as 'minority ethnic' employees in the UK. Campaigners will work to ensure that this is ultimately the end result  - a legislation 'fit for purpose' if you will. 

READ

Ethnicity Pay Gap: Why mandatory reporting is important by by Darren Hockley, Managing Director at DeltaNet International

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