Annexes to COM(2017)671 - Report on the implementation of Commission Recommendation on strenghtening the principle of equal pay between men and women through transparency - Main contents
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| dossier | COM(2017)671 - Report on the implementation of Commission Recommendation on strenghtening the principle of equal pay between men and women ... |
|---|---|
| document | COM(2017)671  |
| date | November 20, 2017 |
In Sweden, employers with at least 25 employees are obliged to carry out a pay survey every three years, assessing pay practices and the gender pay gap in the company. Based on this, they have to draw up an action plan to remedy and prevent unfair gender differences in pay and other terms of employment. In Finland, companies with 30 or more employees have to prepare equality plans, including a pay survey aiming to establish whether there are gender-based pay differences at the workplace; the equality plan must provide suggestions for how to remove unjustified differences. In Germany, companies with more than 500 employees have to carry out pay audits.
In the United Kingdom, employment tribunals can order employers to conduct equal pay audits in cases where an individual brings a successful tribunal claim concerning a breach of the equal pay laws.
In Denmark, employers have the option to set up a voluntary pay equity analysis or to report on wage statistics.
In Estonia and Italy new measures in this area are under discussion. For instance, in Estonia, the government intends to propose a legal obligation to conduct periodical pay audits in the public sector and to prepare gender equality action plans based on the results.
2.4.Making equal pay, including pay audits, part of the collective bargaining process
Encouraging or obliging social partners to discuss equal pay in collective bargaining is another way of increasing wage transparency and addressing the gender pay gap. The Recommendation therefore encourages Member States to ensure that the issue of equal pay, including pay audits, is discussed at the appropriate level in collective bargaining. 33
The inclusion of equal pay in collective bargaining is strongly supported by trade unions. 34
Five Member States 35 have legislative measures in place to ensure that the issue of equal pay is part of the collective bargaining process.
In Belgium, cross-industry agreements, signed by management and employees' representatives every two years, have to include measures aimed at reducing the gender pay gap, mainly by making job classification systems gender-neutral. At sectoral level, the law also makes it obligatory to negotiate measures aiming to reduce the gender pay gap during collective bargaining. In France, companies must include gender equality in collective bargaining. Private employers are obliged to negotiate equal pay targets for men and women at branch level every three years and at company level every year. The implementation of these measures is monitored by the National Collective Bargaining Commission (CNNC). Swedish law states that employers and employees should cooperate to prevent and tackle differences in pay. Since 2007, when the social parties at federal level negotiated specific wage frameworks for women, the gender pay gap has been a crucial issue during each bargaining round.
Three other Member States 36 provide for voluntary measures to encourage the inclusion of equal pay in collective bargaining. These measures include the publication of guidelines for collective bargaining and the provision of gender equality training to the social partners.
3.Implementation of other provisions on equal pay provided in the recommendation
The Recommendation provides for several other measures that also contribute to improvements in pay equality beyond the strict realm of increased wage transparency 37 . This section provides information on the implementation, as it stands today, of some of these measures in Member States.
Improved statistics
The Recommendation encourages Member States to improve the availability of up-to-date gender pay gap data by providing Eurostat with statistics annually and in a timely manner.
Several Member States reported that their national statistics offices provide comprehensive data on the gender pay gap on an annual basis. 38 In Spain, the obligation to provide statistics broken down by gender is provided for by law 39 for public authorities, while Danish legislation contains rules on pay statistics disaggregated by sex applicable to companies 40 .
Definition of the concept of ‘work of equal value’
The Recommendation encourages Member States to clarify the concept of ‘work of equal value’ in their legislation.
Several Member States 41 already provide a definition of the concept of ‘work of equal value’ in their legislation, indicating an analytical framework or the most important criteria for comparing the value of different jobs. In most of these cases, in line with the jurisprudence of the Court of Justice on the concept of equal pay, 42 the legislation lists skills, effort, responsibility and working conditions as the main factors for assessing the value of work.
Two Member States informed about their plans to introduce an explicit definition of ‘work of equal value’ in their legislation. 43
Job evaluation and classification systems
The Recommendation encourages Member States to promote the development and use of gender-neutral job evaluation and classification systems.
In some Member States, the legislation explicitly provides for a requirement that job evaluation and classification systems used for determining pay have to be gender neutral. 44 Some Member States have put in place practical tools, such as guides and checklists for job evaluation free of gender bias and training programmes for employers; these aim to support the implementation of gender-neutral job evaluation and classification systems by companies. 45
Monitoring and enforcement
The Recommendation encourages Member States to ensure that the implementation of the equal pay principle is consistently monitored and that all available remedies to combat pay discrimination are enforced.
In several Member States, labour inspectorates at the regional or federal level monitor pay discrimination 46 . As part of the national administration, these inspectorates are in charge of carrying out inspections to ensure compliance with legislation. In some countries, the labour inspectorates can impose administrative penalties for failure to comply with the equal pay principle. 47
In Belgium, a company with at least 50 employees can appoint a member of its workforce as a mediator who will advise on drafting and implementing the plan that aims to develop a gender-neutral pay structure in the company, as well as on possible remedies to address claims of gender pay discrimination.
Two Member States have reported the introduction of specific sanctions to discourage discrimination. In particular, France has a penalty of up to 1 % of the payroll for companies with more than fifty employees if there is a breach of equal pay obligations. In the Netherlands, companies practising discrimination are excluded from public procurement procedures and their existing contracts with the government can be terminated.
Equality bodies
According to the provisions of Directive 2006/54/EC, 48 all equality bodies provide independent assistance to victims of pay discrimination. However, the tasks and powers of equality bodies are very diverse across Member States. It is only in some Member States 49 that the role of equality bodies includes representing/assisting individuals in such claims before the national courts. In some other Member States, 50 equality bodies have a further-reaching competence to hear and decide on gender discrimination complaints. If gender equality bodies would exercise more of their power to provide independent assistance to victims of discrimination, it would be easier for victims of discrimination to access justice and the effectiveness of the legal framework for equal pay would be ensured.
The Recommendation therefore encourages Member States to ensure that the powers and mandates of their national equality bodies cover issues related to gender pay discrimination, including transparency obligations. In addition, where applicable, Member States are asked to give equality bodies the right to access information on pay and pay audits.
In some Member States, 51 the equality body’s mandate also covers employers transparency obligations related to gender pay discrimination, notably the right to access pay information and pay audits.
4.practical application and impact of pay transparency measures at national level
There is no detailed economic analysis available of the precise impact of introducing pay transparency measures at national level. It is therefore difficult to provide quantifiable data on the impacts of each specific measure.
However, research carried out at national level shows a relationship between such measures and the improvement of the overall situation on equal pay and equal opportunities of men and women in employment at large. Some examples that inspired the 2014 Recommendation illustrate some of these impacts: 52
One example related to the issue of employees’ entitlement to pay information is Portugal, where an obligation for employers to provide employees with information on average salaries by category of workers was introduced in 2009. Stakeholders consider this a significant reason behind the relatively small gender pay gap in that country.
The Swedish equal treatment legislation introduced an employers’ obligation to regularly issue a report on the pay situation including an analysis of pay practices and gender pay differentials. A national study conducted in 2011 states that, of the different measures introduced by the government, the wage mapping obligation has had the biggest effect on tackling pay discrimination. In addition, a review carried out by the Equality Ombudsman concludes that between 2006 and 2008 approximately 6000 people have received wage adjustments following this obligation.
France is an example of equal pay being included in collective bargaining: legislation introduced in 2006 obliges employers and trade unions to once a year discuss the gender pay gap issue during collective agreement negotiations at company and sector level. As a result of the introduction of this obligation, the proportion of collective agreements that address the gender pay gap has increased substantially (from 3 % in 2007 to 10 % in 2010). In addition, most of these collective agreements not only contain a brief diagnosis of the situation, but also present specific indicators and a list of measures to close the gender pay gap.
These specific examples of the implementation in line with three out of the four core transparency measures suggested in the Recommendation and their impacts demonstrate that measures under Recommendation have the potential of contributing to an overall reduction of pay discrimination as well as of the gender pay gap.
5.Conclusions and way forward
The Recommendation provides the first ever toolbox of specific pay transparency measures that aim to tackle pay inequality and the persisting gender pay gap. It encourages Member States to introduce at least one of these transparency-enhancing measures to address pay discrimination. It is a non-binding legal instrument which does not impose any formal obligations on Member States.
The analysis of the information provided by Member States and other stakeholders reveals that although the most Member States have some measures aimed at increasing pay transparency in place, in a third of Member States such measures are entirely absent.
Furthermore, only a small group of Member States have used the opportunity of the Recommendation to review their national legal systems in order to strengthen the principle of equal pay between men and women by introducing pay transparency measures, either as suggested in the Recommendation or otherwise.
Gender equality is one of the fundamental values of the European Union, but it is not yet a reality at work. Women in the EU earn on average almost 16 % less per hour than men do, across economic sectors. This gender pay gap has plateaued in the last five years and at the current rate of change would only close at the start of the next millennium. A study of the European Institute for Gender Equality highlights that unequal pay does not just hurt women but is a cost for society in general. There is a strong link between the gender pay gap, child poverty and skills shortages. In addition, underusing the skills of women’s in a society also involves a cost to the economy in general. 53
Today, despite the equal pay principle, discrimination is still pervasive at work: a woman may be paid less than a man for exactly the same job, and work typically done by women is paid less than work typically done by men, even when it is of equal value. The secrecy around pay levels makes it difficult to detect discrimination cases. Even if most Europeans (69%) are aware of the existence of a gender pay gap in the economy, employees do not think that such a gap exist within their own company, and only 26 % of Europeans are aware of the legal guarantee of equal pay for equal work. A third of employees do not know the wages of their colleagues, and this figure is even less lower for women. A recent study shows that Europeans would support more transparency at work: almost two-thirds of people would be in favour of publishing average wages earned in the organisation or company in which they work by gender and job type. 54
To tackle the gender pay gap and make the equal pay principle a reality, the Commission will continue to monitor Member States’ compliance with the equal pay principle, including by enforcing measures where appropriate and in the context of the annual European Semester exercise.
However, the lack of visible progress in combating pay discrimination, as well as the persisting gender pay gap and the limited follow-up to the Recommendation suggest a possible need for further targeted measures at EU level. Making pay transparency a reality will give citizens the tools to be aware of any discrimination they may suffer and will improve the application of the equal pay principle on the ground.
(1)
OJ L 204, 26.7.2006, p. 23-36.
(2)
COM(2013) 861 final.
(3)
Eurostat 2015.
(4)
The gender pay gap is caused by several complex factors, such as discrimination, occupational and vertical segregation, low representation of women in leading positions, traditions and stereotypes as well as unequal sharing of family responsibilities between women and men.
(5)
C(2014) 1405 final.
(6)
In line with Section 18 of the Recommendation.
(7)
26 Member States (AT, BE, BG, CZ, CY, DK, EE, FI, FR, DE, EL, HR, HU, IT, LV, LT, LU, MT, NL, PL, PT, RO, SK, SI, ES, SE) provided information on the Recommendation’s implementation.
(8)
European Trade Union Confederation (ETUC), European Centre of Employers and Enterprises providing Public Services (CEEP), the Confederation of European Business (BusinessEurope) and European Association of Craft, Small and Medium-sized Enterprises (UEAPME). A technical workshop to further discuss their comments and the implementation of the measures proposed in the Recommendation took place in June 2016.
(9)
As collected by the Network of European Equality Bodies (Equinet).
(10)
http://ec.europa.eu/justice/gender-equality/other-institutions/good-practices/index_en.htm
(11)
http://ec.europa.eu/justice/gender-equality/files/documents/160111_strategic_engagement_en.pdf
(12)
DE, EE, IE, ES, IT, AT, PL, RO, SK.
(13)
Notably in Estonia.
(14)
The Recommendation stipulates that disclosure of any information comprising personal data pursuant to these measures should be provided in accordance with national data protection laws, in particular those implementing Directive 95/46/EC. As of 25 May 2018, data will be protected based on Regulation (Regulation (EU) 2016/679) of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation).
(15)
AT, BE, DE, DK, FI, FR, IE, IT, LT, SE and UK.
(16)
E.g. DE, FR, FI, LT, UK, SE.
(17)
AT, BE, FI, FR, SE.
(18)
Sweden.
(19)
IE, IT, NL.
(20)
Section 3 of the Recommendation.
(21)
Where information provided involves the disclosure of personal data, it should be provided in accordance with national data protection laws
(22)
Law on the promotion of transparency as regards wage structures adopted on 30 March 2017.
(23)
E.g. in FI or SE following an equal pay complaint by an employee.
(24)
E.g. AT, EE, FI, NL, SE.
(25)
E.g. in Austria.
(26)
Section 4 of the Recommendation.
(27)
E.g. AT, BE, DE, DK, FR, IT, UK.
(28)
Equality Act 2010 (Gender pay gap information) Regulations 2017.
(29)
AT, BE, ES, FI, FR, SE.
(30)
E.g. HU, FR, UK.
(31)
IE, IT.
(32)
Section 5 of the Recommendation.
(33)
Section 6 of the Recommendation.
(34)
As provided in ETUC’s 2015 Resolution ‘Collective bargaining – our powerful tool to close the gender pay gap’.
(35)
BE, DE, FI, FR SE.
(36)
AT, CY, PT.
(37)
Sections 7 – 17 of the Recommendation.
(38)
E.g. CZ, DK, EE, ES, FR, NL, PL, RO, SK.
(39)
Article 20 of Organic Law No 3/2007 of 22 March 2007 on the effective equality of women and men provides that the gender perspective must be effectively integrated into statistics and studies
(40)
The Equal Pay Act (Section 5a) contains rules on pay statistics disaggregated by sex. The Act requires companies with at least 35 employees, who at the same time have at least ten people of each sex employed in the same job function, to either annually compile pay statistics disaggregated by sex or agree with the employees to prepare a report on equal pay at least every three years.
(41)
E.g. CY CZ, DE, FR, HR, HU, IE, PL, PT, RO, SK, SE and UK.
(42)
See Cases C-237/85, C-262/88, C-400/93, C-381/99, C-333/97, C-471/08, C-194/08. See also Recital 9 of Directive 2006/54/EC.
(43)
AT, LT.
(44)
E.g. AT, BE, CY, IT, LT, PT, SI.
(45)
E.g. BE, CY, EE, ES, FR, NL, SE.
(46)
E.g. CY, CZ, ES, FR, LV, PL.
(47)
This is for instance the case in Latvia.
(48)
Article 20-2.
(49)
E.g. AT, FI, SE.
(50)
E.g. BE, FR, NL.
(51)
E.g. EE, FI, SE.
(52)
See also the impact assessment accompanying the Recommendation (SWD(2014) 59 final).
(53)
EIGE (2017), Economic Benefits of Gender Equality in the European Union. How closing the gender gaps in labour market activity and pay leads to economic growth, available at: http://eige.europa.eu/rdc/eige-publications .
(54)
Eurobarometer 465.