Knowledge gap holds back equal pay, says Acas

Low levels of understanding by employees and employers is one of the key factors holding back the establishment of equal pay, employment relations group, Acas, has claimed.

Acas advisors declared that lack of information regarding equal pay legislation was second only to financial implications as a reason for failure to implement equal pay policies. The gender pay gap in most sectors is estimated to be at least 20%.

Rita Donaghy, Acas Chair, said that, of the 800,000 calls the Acas helpline receives every year, less than 1% are equal pay queries. Ms Donaghy said that more funding was required to raise awareness of the issue. She said: "Acas has 50 specially trained people who can help companies carry out equal pay reviews but not enough organisations and employees realise how equal pay claims work - the law is about sex discrimination, not about creating a fair pay system. Often company pay schemes are not transparent and so women do not realise they are being discriminated against."

Ms Donaghy also criticised the cost involved in implementing equal pay policies. She said: "The law at present says that where a company carries out an equal pay review and identifies any discriminatory pay levels the difference in pay must be put right immediately. For smaller companies in particular this can put an unbearable strain on the company's finances. If the law were to be changed to allow organisations to phase in equal pay over a period of time many employers may be more willing to look at equal pay issues, knowing they had time to sort out the company's finances. There would, however, need to be a clear timetable for implementation."

Acas' findings were based on the practical experience of advisers about organisational issues. They were presented to the Women and Work Commission, which is examining the problem of the gender pay gap and other issues affecting women's employment, including promotion and career progression; differences between full-time and part-time work; and difficulties facing women returning to work after having children.

(KMcA/SP)