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Equal Pay Developments in UK: Impact & Challenges

Explore the history and impact of equal pay legislation in the UK since 1970, including the Equal Value Amendment of 1984. Learn about landmark equal value claims and the connection to job evaluation. Discover case studies showcasing the outcomes of jointly designed job evaluation schemes in different industries. Delve into the importance of equal pay audits and how they promote gender pay equity. Stay informed on the latest recommendations and initiatives for achieving fair pay practices in the UK private sector.

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Equal Pay Developments in UK: Impact & Challenges

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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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