The UK’s largest trade body TUC, Confederation of British Industry (CBI) and Equality and Human Rights Commission (EHRC) have today, on 25 June 2021, issued a joint call for the government to introduce mandatory ethnicity pay gap reporting.
The joint letter to the Chancellor of the Duchy of Lancaster, Michael Gove, from the heads of the three organisations, states: “Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.” The letter – signed by TUC General Secretary Frances O’Grady, CBI Director General Tony Danker and EHRC Chairwoman Baroness Kishwer Falkner – urges ministers to set out a clear timeframe for introducing ethnicity pay gap reporting to help “ethnic minorities reach their full potential in the workplace”.
TACKLING INEQUALITY & DISCRIMINATION
“Everyone deserves the chance to thrive at work; and to have a decent, secure job they can build a life on. But the sad reality is that even today race still plays a significant role in determining people’s pay and career progression,” stated TUC General Secretary Frances O’Grady. “This problem isn’t going to magic itself away. Without robust and urgent action many BME workers will continue to be held back. Unions stand ready to work with employers, regulators and government on practical steps to tackle inequality and discrimination in the workplace.”
Mandatory ethnicity pay gap reporting “is an obvious first step in helping to improve transparency and bring about change”, added O’Grady. “We need ministers to commit to introducing ethnicity pay reporting now and to bring forward a clear timetable for getting it into law.”
URGENT ACTION NEEDED
In response to today’s letter, Dianne Greyson, Founder of the Ethnicity Pay Gap campaign, said “it’s refreshing to see the need for clear action plans to tackle the disparities”. Greyson launched the #EthnicityPayGap campaign three years ago to push the government to take action on mandatory pay gap reporting. Additionally, she launched Ethnicity Pay Gap Day this year (on 8th January 2021) to promote a call to action, as reported. “For change to happen, we must all play a part,” pointed out Greyson. She urges individuals and businesses to “join the campaign; lobby your MP and make the Ethnicity Pay Gap a thing of the past”.
Urgent action is needed to close the gap as most minority ethnic groups continue to earn less than their White colleagues, as confirmed by the Office of National Statistics (ONS). The CBI, in fact, has been pushing companies to voluntarily disclose their pay gaps since last year (as reported).
ETHNICITY PAY GAP DISCLOSURES
Smart UK companies have already started to report their ethnicity pay gap, even though it’s not mandatory yet. Lloyds Banking Group became one of the first major UK high street lenders to disclose its ethnicity pay gaps, at the end of last year; which revealed that Black staff are being paid around a fifth less than their colleagues. The group’s CEO António Horta-Osório, also outlined its plan to fix the gaps, as reported.
More recently, Sodexo UK & Ireland has become the first company in the UK’s hospitality and facilities management industry to voluntarily publish its ethnicity pay gap data for 2020, as reported. According to WiHTL’s Founder and Chair Tea Colaianni, “more companies than ever before are collecting data on ethnicity and calculating their ethnicity pay gap across the hospitality, travel and leisure industry. Disclosing the data is an important sign of leaders being committed to transparency and accountability”.
If you’re struggling with where to start, check out the practical guidance from The Clear Company’s Jenny Hinde.
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