Little progress in filling yawning gender pay gap

An inquiry by the Equality and Human Rights Commission (EHRC) has revealed that women in the financial sector receive 80 per cent less in bonus payments than men.

The enquiry was prompted by the G20 London Summit when finance ministers did not succeed in cutting individual bankers’ bonuses.

Joe Swinson, Liberal Democrat MP for East Dumbartonshire and chairperson of the Liberal Democrat Women’s Policy Group told The Journal: “It’s appalling that forty years after the equal pay act women are still receiving a lower salary than men. The difference between men and women’s regular pay is already shocking but the gender pay gap in performance related pay has reached a whole new level of inequality.”

According to a survey of 50 companies, women receive £2875 in performance related pay whilst men receive £14,554. Concerning basic pay, women receive 39 per cent less than men, but when bonuses and overtime are considered there is an annual pay gap of 47 per cent.

Swinson added: “Companies are missing out on serious talent by failing to give women the same opportunities as men and are ultimately breaking the law. The ability to take equal pay claims to court is a longwinded process. Instead, we need more companies to undertake an annual equal pay audit and make the findings accessible to the public.”

The report suggests that among employment sectors, the financial arena exhibits one of the largest earning differences between men and women. A pay gap of 28 per cent in the economy generally compares with 55 per cent in city firms.

It has been ascertained that the huge variation in bonuses is a result of few women being able to obtain the top financial positions. Women’s consistently lower starting salaries also contribute to their inability to climb the career ladder.

Some companies have undertaken a pay audit to ensure that women’s salaries were equal to those of men although three out of four companies have not made any effort to target the disparity.

The inquiry has prompted the introduction of more flexible hours and improved maternity rights for women with childcare responsibilities.

Chairman of the EHRC, Trevor Phillips, and Equality minister, Harriet Harman, have agreed that the government urgently needs to address the gender pay gap in order to allow women the same opportunity to progress in their careers.

This new inquiry follows a report  by the Inter-Parliamentary Union (IPU) ahead of International Women's Day in March this year. The report found that in 2008 the number of women in politics, globally, had reached an all time high. 

Currently women hold 18 per cent of all elected senators or members of parliament throughout the world, still short of the United Nations' target of 30 per cent. The leading country in 2008 was post-conflict Rwanda with 56 per cent of positions assumed by females.

Julie Ballington, programme officer for IPU, said that although the progress of women in politics had risen quickly since 1995 it would take 20 years for the 30 per cent target to be reached.

Pia Cayetano, president of the IPU's Coordinating committee of women parliamentarians said: “When women are involved in politics, we note that they bring a different perspective. They bring different talents, different views. So we feel that it is fundamental to democracy that women’s views are heard and that they are part of developmental agendas.”

There are only a few countries who have no female politicians, primarily Pacific island states and Arab states.

Founded in 1989, the purpose of the IPU is to enhance relations between parliamentary representatives and act as a medium for global parliamentary dialogue.