Dismantling equalities: the Coalition scraps gender pay audits

By Kathryn Perera / @kathrynperara

Shortly after the general election, I listened with interest to a speech that Theresa May gave about her new equalities brief. The buzzwords of “freedom” and “choice” abounded. My heart sank. For (as has proved to be the case so often since that day) I knew whose freedoms and choices she had in mind: the freedom of big business to make its profits unencumbered, and the market’s choice to ignore inconvenient realities that do not directly feed bottom lines.

So today’s announcement that the government plans to scrap the duty on companies to disclose how much they pay women and men should come as no surprise. The duty was introduced into the Equality Bill by Labour in order to begin the pro-active approach which is critical if the disgrace of unequal pay is ever to be tackled in this country. A creature of compromise (despite Harriet Harman’s best efforts), the gender pay audit clause placed a positive duty on companies with 250 or more employees to audit their pay in order to reveal, and then address, gender pay discrepancies.

At the time, the current junior Equalities Minister Lynne Featherstone berated Labour for not going far enough. At the time, she ridiculed any suggestion of relying on companies to have the “freedom” to “choose” whether or not to audit their books. In June 2008, Featherstone declared piously:

“A voluntary audit system for private industry is hardly worth the paper it’s printed on.”

Those serious about addressing the gender pay gap hoped that Labour’s plans would be the thin end of the wedge.

Today’s decision means that companies will, indeed, now be encouraged to take “voluntary” steps to address gender pay discrepancies within their organisations. Watch this space as Featherstone no doubt turns her coat on another equalities policy. Meanwhile, try not to hold your breath as we wait for thousands of companies to beat their chests in remorse and voluntarily reform their pay structures to eliminate discriminatory practices.

If we, as a nation, want to get real about equal pay we need to stop tinkering around the edges of legislative reform. We need to challenge ignorant scare-mongering by those who view equal pay as a threat to their self-interest. It is a structural problem; it requires a structural response. In other words, in policy terms, the ongoing dilemma of equal pay requires a socialist response. We need a political movement that shows us the way to achieve gender-neutral pay (as other countries have managed), with bold policy proposals backed by the muscle of political will. Today’s announcement must act as a red flag. It’s time for the Labour Party to step up to the job.