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Government pressed to launch ethnic pay gap reporting

The TUC, CBI and EHRC have issued a letter to the Cabinet Office minister.

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Both the Trades Union Congress (TUC), the Confederation of British Industry (CBI) and the Equality and Human Rights Commission (EHRC) have issued a joint call for the government to introduce mandatory ethnicity pay gap reporting.

 

In a letter to the Cabinet Office minister Michael Gove, the three organisations stated that the move would help to draw more focus on pay disparities, as well as shining a light on the lack of minority representation across senior positions.

 

It read: “Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.”

 

The letter, which was signed by TUC general secretary Frances O’Grady, CBI director general Tony Danker and EHRC chairwoman Baroness Kishwer Falkner, encourages ministers to set out a clear timeframe for introducing ethnicity pay gap reporting, which would help “ethnic minorities reach their full potential in the workplace”.

 

O’Grady added: “Everyone deserves the chance to thrive at work, and to have a decent, secure job they can build a life on. But the sad reality is that even today race still plays a significant role in determining people’s pay and career progression.

 

“Mandatory ethnicity pay gap reporting is an obvious first step in helping to improve transparency and bring about change.

 

“We need ministers to commit to introducing ethnicity pay reporting now and to bring forward a clear timetable for getting it into law.”

 

Pay gap reporting

Reporting on pay gaps is now commonplace, as from April 2017 gender pay gap reporting was introduced, where big employers (with more than 250 staff) were required to publish data on their gender pay gaps.

 

Designed to identify where pay disparities occurred, gender pay gap reporting has helped to contribute to fairer pay across numerous industries.

 

For example, according to the ONS’s UK Statistics Authority Gender Pay Gap Report 2019, in 2019 the median hourly pay for men was 3.5% higher than that of women. This reduced from 11.2% since 2018.

 

Therefore, a similar reporting that focuses on ethnicity pay gap could help to do the same – helping to ensure ethnic minorities are paid fairly.

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