§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)My right honourable friend the Minister for Women (Ms Hewitt) has made the following Ministerial Statement.
I am pleased to inform the House that on 27 September 2004 I announced the launch of the Women and Work Commission, an ad hoc advisory group comprising members drawn from both sides of the social partnership, plus experts in their respective fields. It has been set up to make recommendations to the Government on tackling the pay gap between men and women. The gender pay gap has narrowed considerably from around 30 per cent when the Equal Pay Act came into effect in 1975, and more women than ever before—13 million—are in employment. But persistent differences in men's and women's experience of the labour market remain. The gender pay gap currently stands at 18 per cent for full-time workers and 40 per cent for part-time workers. In a full employment economy it is imperative that we harness the skills and talents of every potential worker. The Women and Work Commission will bring forward recommendations to the Prime Minister within 12 months to build on this Government's proud record of action in this area.
The Women and Work Commission will look at:
- how men's and women's education and skills affect which jobs they can get;
- promotion and career progression—the "glass ceiling";
- women's experiences in the job market before and after having children; and
- the different experiences of women working full time and part time.
The Women and Work Commission's terms of reference are as follows:
Women now make up 45 per cent of the workforce, up from 38 per cent in 1971. The Equal Pay Act and the Sex Discrimination Act in the 1970s were important milestones in breaking down the barriers to women's participation in the labour market. But wages are low in many occupations dominated by women and there is still a gap in mean hourly earnings between men and women: it is 18 per cent among full-time workers and 40 per cent for those women working part time.
There are a number of factors influencing the gender pay gap. The DTI's review of maternity, paternity and flexible working legislation takes account of how caring responsibilities impact upon men and women's labour market attachment and their earnings. The Women and Work Commission will examine the other key factors shaping the difference in hourly earnings between men and women, including labour market experience, skills and education and discrimination. In investigating the impact of discrimination, the commission will look at the measures necessary to strengthen equal pay legislation, including the case for equal pay reviews to be mandatory.
6WSMaking progress on the gender pay gap is a key priority because in a full employment economy, we have to draw on the skills and talents of all potential workers, men and women, and remove obstacles to women's greater participation in the labour market. But it is also important because women have the right to expect a fair deal in the labour market.
The aim of the Women and Work Commission will be to look at these wide-ranging influences on the gender pay gap:
How men's and women's educational experience and skills acquisition foreshadow occupational segregation.
General factors shaping women's and men's labour market experience, including entry into employment, occupational segregation, full-time and part-time work experience, progression in the workplace and the tax and benefit system, as well as discrimination.
Women's experience in the labour market before and after having children.
As a substantial employer of women, the public sector warrants particular examination.
The commission will make recommendations to the Prime Minister within 12 months from Autumn 2004, taking account of the importance of promoting employability, the wider benefits to the economy and the impact on employers and public expenditure. The commission will take account of the DTI review of maternity, paternity and flexible working legislation in shaping its recommendations.
I am pleased to welcome, alongside Margaret Prosser, Chair of the Women and Work Commission, the following members:
- Chair: Baroness Prosser of Battersea
- Members: Sarah Anderson (Chief Executive, the Mayday Group),
- Chris Banks (Chair of National Learning and Skills Council),
- Kay Carberry (Assistant General Secretary, TUC),
- Naaz Coker (Chair, Refugee Council & Chair, St George's Healthcare NHS Trust),
- Debbie Coulter (Deputy General Secretary, GMB),
- John Cridland (Deputy Director-General. Confederation of British Industry),
- John Hannett (General Secretary, USDA W),
- Sally Hopson (Retail and Managing Director (North Division), Asda),
- Adeeba Malik (Deputy Chief Executive of Quest for Economic Development),
- Stella Manzie (Chief Executive, Coventry City Council),
- Julie Mellor (Chair, Equal Opportunities Commission),
- Christine Ray (Group HR Director, the Rank Group),
WA 7 - Ruth Silver (Principal, Lewisham College),
- Liz Snape (Head of Policy Development, Unison).
A call for evidence will be made later in the autumn. Any queries on the Women and Work Commission should be directed to Matilda Quiney, Secretary to the Women and Work Commission, Women and Equality Unit, DTI.