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Equal Pay

Published by Fawcett Society on Sep 17, 2008

Rt Hon Peter Mandelson
Secretary of State for Business, Enterprise and Regulatory Reform
1 Victoria Street
London
SW1H 0ET

Open Letter

Dear Secretary of State

Nearly 40 years after the Equal Pay Act the gap between women and men’s pay remains shockingly large. It is unacceptable that average pay for women working full time is still 17 per cent less than men’s. In effect, women receive their last pay check on October 30th, and work for free for the rest of the year. We are marking ‘No Pay Day’ to expose this gap and call for tough action.

The forthcoming Equality Bill provides a once-in-a-generation opportunity to end this injustice. Action is long overdue. It is now time to end the discrimination against women workers and so increase their current earnings and future pensions. This in turn would contribute towards meeting the Government’s targets on child poverty.

There are also compelling economic arguments for change. The Government's own figures show that unlocking women’s economic potential could contribute a staggering 1.3% to 2% of GDP.

Bold reforms are needed in the Equality Bill to undo the causes of pay discrimination and provide better legal remedy where it occurs.

- To prevent pay inequality taking place, compulsory "health checks" are needed. Organisations should be legally required to undertake equal pay audits which compare the earnings of their employees and to take action to redress inequalities.

- For those women already facing pay discrimination, changes to the law are urgently needed which provide better assistance for those considering cases, and ensure swift resolution of those cases coming to court.

As Secretary of State for Business, Enterprise and Regulatory Reform we look to you to continue Labour’s honourable tradition of promoting equal pay. It is vital that you seize this opportunity to finally make equal pay a reality.

Dr Katherine Rake OBE
Director
Fawcett Society

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