Close the gender pay gap
Summary What is the gender pay gap? Why does the gender pay gap persist? What action has the EU taken? Why does it matter? The gender pay gap across the lifecycle What can be done? Action at national level: Examples Where can you go? 2
What is the gender pay gap? On average, women in the EU earn around 17% less than men The gender pay gap is the difference between men s and women s pay (based on hourly earnings across the economy) In some countries the gender pay gap is widening The gap widens when women work part-time or when they have dependent children The effect of the gender pay gap on lifetime earnings means that women have lower pensions and have a higher risk of poverty 3
Why does the gender pay gap persist? The causes of the gender pay gap are complex and often interrelated: Direct discrimination The undervaluing of women s work Segregation in the labour market Traditions and stereotypes Unequal balance of work and private life All of these factors affect women s pay, their career progression and their potential in the workplace 4
What action has the EU taken? Under EU law it is illegal to discriminate against women at work and in their pay: Equal pay for equal work is one of the European Union s founding principles Article 141 of the Treaty calls for equal pay for work of an equal value The Directive 75/117 provides that the principle of equal pay means, for the same work or for work of equal value, the elimination of all discrimination on grounds of sex with regard to all aspects and conditions of remuneration. In particular, where a job classification system is used for determining pay, it must be based on the same criteria for both men and women and so drawn up as to exclude any discrimination on grounds of sex 5
What action has the EU taken? Under EU law it is illegal to discriminate against women at work and in their pay: The 2002 Directive on equal treatment as regards access to employment, vocational training and promotion, and working conditions also applies to pay and requires Member States to establish Equality Bodies to promote equal treatment These Directives have been incorporated into a single Directive 2006/54 (The Recast Directive) on equal opportunities and equal treatment in employment and occupation 6
What action has the EU taken? Closing the gender pay gap is set as a priority by the European Commission in: The Road Map for Gender Equality (2006-2010) The Communication on tackling the pay gap between women and men (2007) In addition, it is a priority in: The European Parliament, notably in a recent Resolution on the fight against the gender pay gap (2008) The European Pact for Gender Equality agreed by EU leaders (2006) The Framework of Actions on Gender Equality by the European social partners (2005). The third follow-up report, adopted in 2008, shows a large number of measures at national level 7
Why does it matter? Closing the gender pay gap has benefits for employers and workers Creates quality jobs Attracts the best and most talented workers Creates a positive working environment Increases productivity and competitiveness 8
Why does it matter? Closing the gender pay gap makes the economy as a whole more profitable Women play a vital role in Europe s employment and growth Their skills and talents are necessary for economic and social development Closing the gender pay gap can help to create a more equal society Valuing women s skills can improve their economic independence Fewer women will be in poverty, particularly upon retirement 9
The gender pay gap across the lifecycle Stereotypes shape women's and men's roles in society, starting at a very early age Whilst this may reflect personal preferences, traditions and stereotypes may influence, for example, the choice of educational paths and employment patterns 10
The gender pay gap across the lifecycle Women and men still tend to work in different jobs. Women often work in sectors where wages are, on average, lower than those dominated by men The gender pay gap exists even though women represent as many as 59% of all university graduates Women's skills and competences are under-valued especially in those occupations where women predominate 11
The gender pay gap across the lifecycle Women s opportunities for progression and higher pay in the workplace are affected by their family responsibilities The gender pay gap widens when women have children, and particularly when they work part-time The employment rate for women with dependent children is only 62.4% compared with 91.4% for men with children. More than three-quarters of part-time workers are women (76.5%) 12
The gender pay gap across the lifecycle The gender pay gap reduces lifetime earnings and women's pensions When women retire their lower pensions mean higher risk of poverty 13
What can be done? Value women s and men s work equally Tackle segregation in the labour market Tackle stereotypes Promote the reconciliation of family and work life Promote a workplace culture of equality Action is required at all levels 14
Action at national level: Examples The following are non exhaustive examples of initiatives that have been introduced to tackle the gender pay gap. These initiatives include actions in the field of national legislation, social partners' agreements, equality plans, awareness-raising and other types of initiatives. 15
Action at national level: Legislation Example: Spain A gender equality law was adopted in March 2007 The law has specific provisions on fighting discrimination Positive action measures in collective agreements Reconciliation of work and family life Promoting equality plans and fostering good practices 16
Action at national level: Social dialogue/social partner agreements Example: France Legislation requires equality in negotiations and pay bargaining The law also makes it compulsory to negotiate at sector level 'on the steps towards bringing about gender equality at work [...] and those for rectifying identified inequalities' every three years' A national intersectoral agreement on gender equality and gender balance in workforce composition was signed in April 2004, which included measures to narrow the gender pay gap 17
Action at national level: Equality Plans Example: Sweden Legislation provides that all employers with a minimum of ten employees prepare an annual equal opportunities plan and a plan for action for equal pay Plans include active equality measures being taken and planned, a survey of existing differences in pay between women and men, the value of women s work, and follow up assessment with regard to actions taken There is a duty on employers to provide gender specific pay statistics if requested by trade unions or employee representatives Equality plans are monitored by the Equality Ombudsman 18
Action at national level: Other Initiatives Example: Finland An Equal Pay programme for 2007-2011 aims to reduce the gender pay gap from 20% to 15%: Actions to reduce occupational segregation, the development of pay systems, measures to support women s careers, and action by the social partners to establish agreements to reduce the pay gap Specially negotiated pay rises for the lowest paid women workers have been put in place and have already had an impact on reducing the gender pay gap 19
Where can you go? For more examples and information on the gender pay gap, go to: 20