Observation (CEACR) - adoptée 2001, publiée 90ème session CIT (2002)

The Committee notes the information contained in the Government’s report as well as the additional documentation provided. It also notes the comments of the Trades Union Congress (TUC), which had been forwarded to the Government on 30 November 2000 for any reply it may have wished to make.

1. The Committee notes from the statistical information provided by the Government that in 1999 women’s average hourly earnings (excluding overtime) amounted to 80.9 per cent of men’s earnings in Great Britain, an increase of only 0.9 per cent from 1998, while women’s average hourly earnings (excluding overtime) in Northern Ireland increased by 2.6 per cent to 86.9 per cent in 1999 compared with 1998. The Committee further notes from the Northern Ireland New Earnings Survey, April 1998 and 1999 that, among managers and administrators in Northern Ireland, women workers earned 34.61 per cent less than men in 1998. In comparison, in 1999, women workers earned 34.14 per cent less than men. Among the professional categories women workers earned 13.96 per cent less than men in 1998 but this gap fell to 10.75 per cent in 1999. The Committee requests the Government to continue to provide statistical information in order to enable it to evaluate the implementation of the principle of equal remuneration of men and women workers for work of equal value. It also asks the Government to supply information on any promotional measures taken to narrow the wage gap between men and women workers.

2. The Committee notes the Government’s statement that it intends to introduce changes to employment tribunal procedures to simplify and speed up equal pay claims. It notes that the Trades Union Congress (TUC) welcomes the Government’s plans to change the tribunal procedures, but that the TUC is of the opinion that these measures will not be enough to address the gender pay gap between men and women workers. The TUC refers to research undertaken by the Equal Opportunities Commission (EOC) which reveals that at the current rate of progress it would take another 20 years to close the gender pay gap. The TUC therefore states that consideration should be given to placing a statutory duty on employers to review pay systems and pay structures and to publish the results, a concept which it has elaborated in its response to the EOC publication Equality in the 21st Century. The Committee notes from the information attached to the Government’s report that it is proposed to merge the Sex Discrimination Act, 1975, and the Equal Pay Act, 1970. In this respect, the Committee notes the recommendations of the EOC proposing that employers should monitor their workers’ rates of pay on an annual basis. The Committee asks the Government to continue to provide information on any developments in this respect and to supply a copy of the revised legislation when it has been adopted. Please also provide information on any amendments to the tribunal procedures for equal pay claims.

3. The Committee notes the adoption of a statutory minimum wage on 1 January 1999 by means of the National Minimum Wage Act 1998 and the National Minimum Wage Regulations 1999 (amended in 2000). It notes that the Act contains several sections dealing with enforcement and that promotional measures have been taken by the Government, such as publicizing the minimum wage, issuing guides and awareness raising campaigns. The Committee notes with interest the Government’s statement that, through the introduction of the minimum wage, an estimated 1.5 million workers have become entitled to higher pay and that about two-thirds of them are women workers. In this respect, the Committee notes the comments of the TUC that this measure has led to a rise in the incomes of some of the lowest paid workers and to the largest narrowing in a decade of the full-time and part-time gender hourly pay gap. It also notes that the Low Pay Commission Report (published on 15 February 2000) states that many enterprises are meeting their obligations to pay the minimum wage and that the Inland Revenue has made a successful start in ensuring enforcement. In addition, the Committee notes that a third report has been commissioned for July 2001 with a view to revising the minimum wage, and asks the Government to provide a copy of it with its next report.

4. With regard to the National Insurance Lower Earnings Limit (LEL), the Committee notes the Government’s statement that the introduction of the national minimum wage has no direct implication for the LEL. The Committee notes the introduction of the primary threshold in April 2000 (£76 per week for 2000/01) as the wage level at which national insurance contributions are to be paid. It also notes that the introduction of the minimum wage has resulted in a worker who works just over 18 hours earning more that the LEL and that this measure, combined with the introduction of the primary threshold, results in those workers earning between the LEL and the primary threshold being treated as if they are paying contributions on their earnings to protect their benefit position. The Committee asks the Government to continue to provide information respecting the LEL and the primary threshold and their effects on the application of the principle of equal pay for work of equal value. The Committee notes the statistical information provided by the Government in the Labour Force Survey, Winter 1999, which shows that of all part-time workers 83.29 per cent were women, and that of all part-time workers, 54.77 per cent women part-time workers earned £66 per week or less, while 9.5 per cent of male workers earned this level of wages. In this respect, the Committee notes that section 19 of the Employment Relations Act, 1999, provides that regulations shall be issued to ensure that part-time workers are not treated less favourably than persons in full-time employment, and that section 20 envisages that codes of practice may be issued. The Committee understands that regulations have now been brought into force and requests that information be provided on their content and impact. The Committee reiterates the importance of tackling any indirect discrimination against part-time workers, the majority of whom are women.

5. The Committee notes that the Government abolished compulsory competitive tendering (CCT) as from 2 January 2000, which had been criticized by the TUC as having a negative effect on women’s wages. It notes that, through the adoption of the Local Government Act, 1999, the principle of "best value" has been implemented for tendering in the public sector as from 1 April 2000. The Committee also notes the Government’s statement that it intends to amend the legislation regarding the selection of tenderers with a view to complying with its obligations as a Member of the European Union, and it therefore requests the Government to provide information with its next report on the manner in which it ensures, when purchasing services, that the principle of equal remuneration for men and women workers for work of equal value is applied. It also requests the Government to supply a copy of the consultation paper issued in April 2000 and a copy of the relevant legislation once it is adopted.

6. The Committee notes the Government’s statement that Northern Ireland adopted a Code of Practice on Equal Pay in 1999 and requests the Government to supply with its next report a copy of the Code, which the Government states that it has already provided, but which has not been received by the Office. The Committee recalls the adoption of the Code of Practice on Equal Pay by the Equal Opportunities Commission. It notes the Government’s statement that the Code of Practice has so far not been used as evidence in a tribunal and requests the Government to continue to provide information on cases relating to the principle of equal remuneration.

7. The Committee notes the court rulings concerning equal pay attached to the Government’s report and requests it to continue to provide information on court cases dealing with equal pay claims.