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Philippa Hall

'Pay Equity Issues and Prospects'

There has been very little movement in women's earnings relative to men's since the early 1990s when the highest ratio to date was reached – women working full time (ordinary time) were earning 84.9% of men's earnings. The ratio has declined since the introduction of enterprise bargaining and now stands at 82.4% This decline has occurred despite factors that could have been expected to bring improvements in women's earnings, including more workforce participation and experience, higher levels of education and participation in a wider range of occupations, industries and workplaces.

The lack of progress on pay equity is a concern in many countries and internationally. A wide variety of approaches is being trialled, including joint employer/union pay studies, the Canadian requirements for organisations to produce pay equity plans, development of new forms of job evaluation, and solidaristic low pay strategies.

Increasing attention was given to pay equity in the mid 90s. The Australian Council of Trade Unions ran two test cases in the Australian Industrial Relations Commission. The NSW Minister for Industrial Relations referred an Inquiry into pay equity to the Industrial Relations Commission. Subsequently new industrial principles were set for determining equal remuneration and other conditions of employment for men and women workers for work of equal value. The first case under the new principles produced substantial pay increases for librarians and recognition that the levels of skill and knowledge of their profession is comparable to other professions.

The equal remuneration principle is largely putting into effect International Labour Organisation Convention 100 on equal remuneration for men and women workers for work of equal value, to which Australia is signatory. The most important thing the NSW Pay Equity Inquiry said about the Convention was that it operates prospectively not retrospectively (and there are no retrospective payments or damages) so there was no need for proof of a discriminatory cause. What is required is simply that for the future rates be set that reflect the value of the work of men and women workers, with the value assessed free of any sex discrimination. What has to be shown is sufficient basis to think that needs doing - evidence about a gender-related undervaluation. So there has to a connection with gender (and in the report there are some indicators of gender-related undervaluation) but not to the level of proof of causation. This was because it was accepted that most industrial relations mattered are settled by consent and without any or good documentation of the reasons. So it was accepted including by two of the three employer organisations involved in the Inquiry that if proof of cause were required, even the most deserving of cases probably could not succeed.

The NSW principles were informed by consideration of the factors contributing to failure of pay equity cases in other jurisdictions and other countries including:
  1. requirements for a specific gender proportion in the occupation or group making the claim
  2. requirements for a male comparator
  3. requirement to use any particular method of evaluating work (job evaluations, independent experts etc.)
  4. requirement to prove discrimination as the cause of a gender-related pay disparity
  5. requirement to make out the case within a particular enterprise, occupation, industry, or single employer
  6. exclusion of certain causes of gender-related pay disparity (for example, seniority, market factors, job evaluation schemes etc).
  7. a narrow view of remuneration, excluding certain forms of reward for work
There are cases for childcare workers in progress in several jurisdictions. Key issues include how the skills and knowledge of the work of caring for and educating and developing children can be understood, described and evaluated, and how account should be taken of the conditions under which the work is done.

Key pay equity issues in general include how work can be described and valued in ways that are not affected by the gender of the people who do or have done it. As well as the technical issues, there are of course political and economic factors and pressures and constraints affecting action for pay equity. For example, concern has been expressed that substantial increases for childcare workers will lead to increased fees and to some parents being unable to afford the increases and therefore being forced out of the workforce or having to use poorer quality arrangements. The economic impact of pay increases in female-dominated occupations is likely to be substantial in public, private and not-for-profit sectors.

Pay equity may also affect the overall operation of labour market supply and demand in particular occupations. Shortages in many female-dominated occupations are related to low pay, and it is likely that some parts of the labour market will become less sex-segregated as higher rates of pay attract more men into some of the currently female dominated occupations.

Progress on this issue is critical to women's economic independence and therefore their life options. It is important to understand what is impeding progress and therefore what might accelerate it.

Bio: Philippa Hall is Deputy Director General at the NSW Department for Women. She has extensive experience of women's policy mechanisms, issues and agencies generally. Her interests are in important issues for women (including in relation to incomes, employment, education and training, services, rights, health, housing and social participation and recognition of women). They include the specific experience of these issues by various groups of women. Ms Hall has worked intensively on women's employment issues including industrial relations, pay equity, labour market, education and training, occupational health and safety and sex discrimination. Ms Hall has presented papers on these issues on many occasions and provided advice to State and Federal Governments on legislative and policy issues relating to women's employment and other issues for women. She has worked in most of the NSW and federal agencies concerned with women's employment. Ms Hall has also worked extensively on human rights issues and takes a keen interest in international cooperation to advance the human rights of women. Ms Hall has a strong interest in the ongoing development of the concepts and techniques required for gender inclusive policy and program development, and in managing the knowledge on these issues that is held in women's policy agencies. Her qualifications include Master of Arts (First Class Honours) from Sydney University; Master of Commerce from the University of New South Wales; Diploma of Information Management (Post-Graduate) from the University of New South Wales; and Bachelor of Arts (First Class Honours) from Sydney University.

<Philippa.Hall@women.nsw.gov.au>