International Study Highlights Pay Equity Gap

March 10 2009 - ACTU President Sharan Burrow says that Australian women are risking loss of pay, skills and access to decent work because of the Global Financial Crisis. Sharan Burrow says that employers should do more to protect jobs and Government should fund a paid maternity leave scheme.

Burrow's statement marked 2009 International Women's Day on March 8 following the release of international data indicating that women are being hit hard by the economic crisis.

She said that the crisis could lead to Australian women losing important gains in pay equity, as seen in other countries deep in recession, unless appropriate measures were put in place. Women are already over-represented in vulnerable jobs, particularly low-paid and part-time work.

Sharan Burrow, who is also president of the International Trade Union Confederation (ITUC) said:

"There are a number of reasons why women still earn so much less than men, including overt and subtle discrimination against women,.

"There is a lack of transparency about how the private sector handle promotions to better-paid jobs. Entrenched discrimination and lack of maternity leave for women are all contributing factors.

"Women were hurt by the industrial relations policies of the Howard Government, and during the WorkChoices era the pay equity gap grew wider after many women were forced onto individual contracts that stripped their pay to the barest levels, in many cases underpaid them, and removed their rights and job security.

"The Federal Government's pay equity inquiry is still underway and there is no time to lose on this. We urge the government to act sooner rather than later to set up a Pay Equity Commissioner in Fair Work Australia to monitor mandatory annual reporting of gender pay data by all employers, including small businesses.

"With newspaper reports that the cost of a paid maternity leave scheme may be less than originally estimated, this is also a measure that is long overdue and must be bedded down in the 2009 Budget."

ITUC's international study of 300,000 women and men in 20 countries indicates a much higher pay gap between men and women worldwide than the figures in official government figures. The ITUC believes the true rate to be around 22% - compared to government estimates of 16.5%.

The ITUC study also showed that the gap between male and female pay was smaller when pay rates were based on collectively negotiated agreements in the workplace.

According to the ACTU, the average pay equity gap in Australia is 16%, with a wide variation between states and industries. For example, in Western Australia the pay equity gap is 28%.