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PRIVATE SECTOR EQUAL VALUE DEVELOPMENTS IN THE UNITED KINGDOM (UK)

PRIVATE SECTOR EQUAL VALUE DEVELOPMENTS IN THE UNITED KINGDOM (UK). Hong Kong Equal Value Conference 5 th October 2001. UK EQUAL PAY LEGISLATION. Passed in 1970 Came into force in 1975 Outlawed ‘ women ’ s rates ’ of pay Cases to Tribunal on grounds of ‘ like work ’

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PRIVATE SECTOR EQUAL VALUE DEVELOPMENTS IN THE UNITED KINGDOM (UK)

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  1. PRIVATE SECTOR EQUAL VALUE DEVELOPMENTS IN THE UNITED KINGDOM (UK) Hong Kong Equal Value Conference 5th October 2001

  2. UK EQUAL PAY LEGISLATION • Passed in 1970 • Came into force in 1975 • Outlawed ‘women’s rates’ of pay • Cases to Tribunal on grounds of • ‘like work’ • ‘work rated as equivalent’

  3. 1970 EQUAL PAY ACT • Very limited impact because of: • Occupational segregationfew ‘like work’ claims • Little job evaluation few ‘work rated as equivalent’ claims • Tribunals interpreted legislation very strictly • Little support for applicants

  4. 1984 EQUAL VALUE AMENDMENT • 1972 –UK joined European Union (EU) • 1975 - EU Equal Pay Directive • 1982 – European Court of Justice (ECJ) said UK legislation did not comply with European requirements • 1984 – Amendment added ‘equal value’ to grounds for Tribunal claim

  5. EQUAL VALUE CLAIMS • Difficult procedure but many claims • Increased EOC and union support • Some examples: • Ford sewing machinists • Pickstone & Others v Freemans (mail order) • Clerical & secretarial staff v Lloyds Bank • Enderby & Others v Health Authorities (Speech & Language Therapists) • McKechnie & Others v County Council (nursery nurses)

  6. 1984 EQUAL VALUE AMENDMENT • Links to Job Evaluation (JE) • ‘equal value’ = comparison between jobs of ‘skill, decision and effort’ factors in mini job evaluation scheme • Fair and non-discriminatory job evaluation scheme is a potential defence to an ‘equal value’ claim

  7. CASE STUDY ONE – PIZZA MAKING COMPANY • Agreed jointly designed JE scheme • Factors included: • Responsibility for hygiene, health & safety • Responsibility for product quality • Manual dexterity • Detailed job information through job questionnaire

  8. CASE STUDY ONE – THE OUTCOMES • Rank order of jobs did not change significantly • Showed pay gap between grades 2 (mainly male) and 3 (mainly female): too wide, so narrowed • Grade 3 women applied for grade 2 jobs • Men prepared to work in grade 3 jobs

  9. CASE STUDY TWO – FINANCE COMPANY • Agreed jointly designed JE scheme • Factors included: • Responsibility for customers • Communication skills • Working conditions • Detailed job information through job questionnaire

  10. CASE STUDY TWO – OUTCOMES • Customer-related jobs moved up rank order • Call takers (female) upgraded • Grading of secretarial jobs changed from boss-related to demand-related • BUT many private sector firms did nothing

  11. PAY STRUCTURE REVIEWS • 1997 EOC Equal Pay Code recommended equal pay audits • 1998 PayCheck published • 2000 Independent Review recommended pay equity plans • 2001 Equal Pay Task Force recommended equal pay reviews • 2001 PayCheck developed for civil service use

  12. WHAT IS AN EQUAL PAY AUDIT? • Statistical analysis of organisational pay structure by gender • Each element (e.g. basic grading & pay; working pattern payments; performance related pay) reviewed against good practice check-list

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