European conference on the pay gap: the need for a European strategy and national action plans
The average hourly pay gap between women and men remains at 18% within the European Union and, on an annual basis at 24%, according to the European Report released by the Belgian Presidency; in real terms the difference ranges between 6% and 34%. These figures have led Deputy Prime Minister, Minister for Employment and Equal Opportunities, Joëlle Milquet to make the struggle against unequal pay one of three priorities for her equal opportunities programme during the Belgian Presidency of the European Union. The Minister therefore organized on 25 and 26 October, a conference on this theme, in collaboration with the European Commission.
I. Introduction
Joëlle Milquet’s ambition is to give a new impetus to Europe's determination to eliminate the pay gap. Nearly 250 participants from national authorities responsible for equality between men and women policy, social partners, civil society, EU institutions and academia attended the conference to seek effective action strategies. Joëlle Milquet hoped to rally all key players and will submit the findings for adoption by the EPSCO Council in December 2010.
This thinking is part of a new context: that of the new EU 2020 Strategy for employment and intelligent, sustainable and inclusive growth. A major objective of this Strategy is to increase the employment rates of men and women, aged 20 to 64, to 75% by 2020. To do so, would require dramatically increasing the employment rate for women, which is currently 63%, while tending toward the essential principle of equal pay.
II. A need for European and National Strategy to overcome the pay gap
The conference helped to develop 10 major axes to focus on:
- Implementation of national action plans to reduce the pay gap
Dealing with multiple, interconnected and interdependent causes requires real integrated actions strategies. Joëlle Milquet believes that in order to address the causes of the pay gap it will be necessary for Member States to put in place proper action plans and thereby to establish a focused strategy with which to concomitantly tackle the different causes of the pay gap, and to coordinate the actions of all relevant key players by combining several measures. The new Commission strategy may provide a basis for this, and add new momentum, both at the European and Member State level who should be asked to define real action plans to overcome the pay gap.
- Effective implementation and enforcement of equal pay legislation
Not only should legislations be strengthened, but effective implementation of the existing legislation to ensure equal pay and workplace equality should also be ensured. New legislation must be devised if necessary. The example of Canada and its equitable pay law may be a source of inspiration.
- Ensuring transparency of salaries
The gender-neutral function classification system should be generalised: earnings include not only basic pay but all other fringe benefits, which are paid directly or indirectly, in cash or in kind by the employer. As wage negotiations are become increasingly individualized, lack of transparency is leading to a lack of understanding and less awareness among women regarding fringe benefits, such as profit sharing, company cars, phones, laptops, etc. Only training and awareness programmes for women, and the will to implement salary and fringe benefit transparency could make a difference!
- Elimination of vertical segregation
The elimination of vertical segregation is critical, especially through ambitious measures and penalties aimed at increasing the presence of women in decision-making positions in public and private companies. A number of examples have confirmed that, when all else fails quotas could be implemented. It is not absurd to imagine that 30% of the members of corporate boards and senior executives of private and public sectors should be women.
- Overcoming stereotypes and horizontal segregation
To eliminate horizontal segregation, we must overcome such stereotypes in education and in the media. Yesterday’s speakers reminded us that it was mostly girls who should have the choice of opening up to new training pathways. Positive actions to facilitate the access to activities underrepresented by gender should also be implemented. Guidance and awareness promoting services to bring more women into scientific, technological or financial fields should be strengthened.
- Reconciliation of private and professional lives
Member States must also ensure the provision of a sufficient number of care facilities for children and other dependents, at an affordable price. The Barcelona objectives are still relevant, and often not respected, and should therefore be continued and strengthened.
To better reconcile family and professional life, better paid parental leave for both parents should also be provided and measures taken to encourage their use by men.
- Periodic measurement of the pay gap
To verify the effectiveness of the "set" of measures put in place, regular assessment of the pay gap should be conducted, and its evolution over time, analyzed, using agreed European indicators, and revised as suggested by this conference report.
Some Member States already have experience in this area, such as Belgium and Spain. The United Kingdom’s good practice of forcing the public sector and encouraging the private sector to publish data on the pay gap has also been identified.
- Integrating targets in the National Reform Programmes
Within the framework of the Europe 2020 Strategy, it would be useful if Member States were to consider establishing, in the National Reform Programmes, national targets along with a timetable and a specific strategy to:
- Increase the employment rate of women. This would require development of sub-targets, not only in the area of employment for women but also in training, as well. Particular attention should be given to the most vulnerable women: women who are in charge of single parent families and immigrant women who are often doubly discriminated against, both in terms of wages and access to employment. Attention should also be paid to reducing the precarious status of women in the service sectors and those with part-time contracts. Economic surveillance and monitoring guidelines for employment will play a key role in this matter;
- An increase of the supply of adequate, affordable and high quality care facilities for dependents and for preschool children. For these it is the hope of the Presidency that the offer be greater or at least equal to the targets set by the Council in Barcelona;
- Elimination, by means of a multi-year plan, of the pay gap.
- Relying on the European Commission
The role of the European Commission is important in several respects and the Belgian Presidency is counting on its support to:
- Conduct regular monitoring of the pay gap, with the support of the European Gender Institute, and on the basis of proposals to revise indicators as presented in the European report on the pay gap;
- Produce a European study on the structure of wages in order to highlight fringe benefits (profit sharing, stock options, company cars, phones, etc.).
- Take legislative measures to ensure equal employment and pay and to ensure the presence of women in decision-making positions in public and private companies;
- Increase public awareness by instituting a European Equal Pay Day.
- Empowering the social partners
The role of the social partners is important in order to:
- Decide on targets for reducing the pay gap;
- Improve the quality of women's employment;
- Implement in the work place concrete actions to reduce the pay gap;
- Insert gender equality in collective bargaining.
