Workplace equality - Gender pay gap must be addressed

EU moves to create pay parity between men and women will have a major impact on business and industry in Ireland if the wage gap between the sexes is to be bridged.

Estimates of the size of the pay gap here vary wildly and according to the EU women in Ireland earn 9% less than men. But according to ICTU, the trade union umbrella group, this figure contradicts the Government’s National Women’s Strategy which recorded a 14% pay gap. This compares badly with Slovenia where the gap is 11%, the smallest in the EU.

Reportedly, the Republic’s pay gender gap dropped from 20% in 1995 to 9% in 2005, with Cyprus and Estonia having the largest pay gaps at 25%.

The EU is now taking steps to redress the persistent problem of gender inequality across Europe in a bid to span the stubbornly wide pay gulf between men and women.

Initially, researchers will examine why the pay gap exists and then put forward options for tackling it. It is not rocket science to suggest women are paid less than men in the workplace because governments permit companies to get away with it.

It is a regrettable but undeniable fact that the principle of paying women less for their labour has been stitched into the weft of social fabric. Thanks to the EU, however, equal pay for equal work is now a basic principle rather than just a theoretic concept.

In line with other countries, a slight advance has been made in Ireland but only because successive governments have been forced to change employment laws and policies to accommodate equal pay.

Right across the EU economy, women continue to earn an average of 15% less than men. Analysing the Irish scenario, the European Commission concedes the gulf is much wider in the private sector where it varies considerably from company to company and from job to job.

Moreover, the suggestion that Ireland has a lower pay gap could be misleading as it suggests most women here work full-time, unlike their counterparts in countries like Germany and Sweden, who are more likely to work part-time.

Generally speaking pay disparity has hardly changed in the past decade, with business, financial services, and industry among the worst offenders.

Ironically, though women are paid less, they have the longest working hours when paid and unpaid working time are combined. In this context, Irish women are no different.

An EU-wide review of wages (excluding overtime), put the average pay gap at 25% with Britain the biggest culprit at 30%. In Ireland, the hourly wage for men was €18.29 compared to €13.47 for women. Over a 40-hour week, the difference of €4.82 an hour amounts to nearly €200.

Men also fare better in bonus payments and pensions. Arguably, women are at a disadvantage because of the years they spend out of the labour market, having children and raising their families.

While three out of four jobs created in the EU are being taken by women, the pay gap persists. With 59% of university graduates now female, and despite boasting higher educational achievements, women continue to be paid less than men.

Discrimination and inequality are deeply rooted in the Irish and European labour markets. The glass ceiling prevents women reaching the top jobs in business. They also face barriers reaching managerial decision making positions in many companies.

Thanks to government foot-dragging, greedy employers here and elsewhere in Europe know they can get away with blatant exploitation of women. Social responsibility demands that the gender pay gap be bridged sooner rather than later.