Trade union action in closing the gender pay gap around the world.

 

Equal pay for work of equal value is at the core of the trade union call for a New Social Contract. This entails the creation of quality jobs, including in the care economy, respect for fundamental labour rights, adequate wages, universal social protection, and greater equality and inclusion. Equal pay for equal work is more likely to be achieved within inclusive and egalitarian labour markets. Trade unions and adequate gender-inclusive policies and regulations are central to both the development of inclusive labour markets and to the pursuit of gender pay equality. This section presents some examples of how trade unions around the world have campaigned to tackle gender pay gaps through social dialogue towards the adoption of conducive legislation, workplace policies and collective agreements, as well as through promoting campaigns and other tools and initiatives.

CHILE - In 2022, an agreement between the Government of Chile, the Central Organization of Chilean Workers (CUT) and 16 trade union federations in the public sector that includes a number of initiatives to address the gender pay gap in the public sector was concluded. As part of the agreement a bipartite committee, comprised of government and trade union representatives, was tasked to review and analyse existing data on the gender pay gap in the public sector in 2023 and to run pilot projects in three public institutions using the ILO’s gender-neutral job evaluation methodology in 2023-2025 aimed at identifying the gender pay gaps in the selected institutions and initiate social dialogue and collective bargaining processes for addressing these gaps. The latter is a continuation of the successful first pilots that were completed in 2017, following a protocol signed between the Government of Chile and the ANEF (National Association of Public Employees).

ISRAEL - Na’amat, the largest women’s movement in Israel and a member of the Histadrut-General Federation of Labour played a key role in the amendment of the Male and Female Workers Equal Pay Law which determined a reporting obligation for the segmentation of wage gaps on a gender basis for companies with more than 518 employees, detailing the average wages gaps between men and women in percentages for each group of workers in the workplace. Companies are now required to produce two reports annually: one for the internal organisation, and one for the public, to be published on the company’s website while maintaining workers’ right to privacy.

JAPAN - In Japan there is a 25.7 per cent gender gap in wages, which is much larger compared to other countries. If the ratio of men and women in management positions were to be equal, the gap would be reduced by 9 percentage points, and if the length of service were to be equal between men and women, the gap would be reduced by 4.4 percentage points, which would be a significant improvement. Positive progress has been introduced by the government with the support of workers’ organisations through the amendment of the Ministerial Ordinance of the Act on Promotion of Women’s Participation and Advancement in the Workplace which requires companies with 301 or more employees to identify and disclose wage differences between men and women. The Japanese trade union organisation, RENGO, is working on initiatives for the effective implementation of the law. These include initiatives to encourage RENGO’s affiliated organisations to conduct union-initiated wage gap-checking activities, and to demand that their employers develop action plans to tackle wage disparities. The obligation to formulate an employer action plan and publish information was extended to employers with 101 or more employees from 1 April 2022.

MAURITIUS - In Mauritius, CTSP (Confédération des Travailleurs du Secteur Privé) focused its campaigns on the poor wages of Cleaners and Export Processing Zone workers, mainly composed by women and migrants (up to 2017 they were paid monthly wages of US$50 and US$150 respectively). CTPS organised mobilisations, demonstrations and campaigns demanding wage increases and, in October 2017, a 10-day hunger strike for decent wages for all was organised. Finally on 1 January 2018 the Government introduced the National Minimum Wage and established a National Minimum Wage Council where CTSP has a seat and assesses and upgrades the Minimum Wage annually. As a result of the continuous negotiation, in 2023 the national minimum wage for the lowest categories of workers started at Rs12,075 (US$257), for 45 hours of work per week.

NEW ZEALAND - The Public Service Association (PSA) has been working on Pay Equity claims since 2018. In 2020, in response to legal action by the trade union movement, New Zealand’s equal pay legislation was amended to include processes for raising and settling pay equity claims outside of collective bargaining processes. The amendments have made a significant difference to the trade unions’ ability to pursue equal pay for work of equal value and has meant significant progress for women. Unions are also using this as an opportunity to organise everyone covered by the claim and address pay equity. To date there are 28 Pay Equity claims across the public and private sectors covering tens of thousands of workers, including those comprising large workforces, such as teaching, nursing, care and support workers, and administration workers. Six claims have been settled to date in the public and community services which are bringing substantial pay rises (30-40 per cent) to workforces where women were predominantly represented, along with a range of improved terms and conditions of employment. The first claim and settlement for a Māori Workforce was even higher, with average pay increases of 79 per cent achieved. In addition, Te Kawa Mataaho, New Zealand’s public service commission, is working in partnership with the PSA to address pay gaps in the public service. Kia Toipoto, the public service pay gaps action plan, seeks to address all drivers of pay inequity besides undervaluation, which is being addressed through the pay equity claims process. These plans require agencies to address both gender and ethnic pay gaps. This is a significant step forward, as previous plans had only required agencies to address ethnic pay gaps. The combination of Kia Toipoto and Pay Equity settlements has had a significant impact on pay gaps in the public sector. The Māori pay gap has decreased from 11.2 per cent to 6.5 per cent since 2018 and the gender pay gap has decreased from 12.2 per cent to 7.7 per cent.

PERU - As a response to the continued lobby and engagement of the Autonomous Confederation of Workers of Peru (CATP), together with the ILO, the Peruvian Government committed to modify the Domestic Workers Law. The Government issued Domestic Workers Law no. 31047 in 2020 and its Regulations in 2021, guaranteeing domestic workers the right to minimum legal remuneration, the right to holidays with pay, full gratuities, compensation for time of service, limitations on maximum working hours, overtime pay, and wage surcharge for working on a holiday. This was achieved within the framework of the implementation of ILO Convention 189 and in line with Convention No. 111 and, as such, applies to all workers without distinction, ensuring equality of opportunity and treatment in all aspects related to employment, including access to employment, promotion, job security, remuneration and working conditions in relation to other workers.

UNITED KINGDOM - Major advances have made in the public sector, notably the National Health Service (NHS), due to pressure from the trade unions. Thanks to the engagement of UNISON, the public service union, the NHS Agenda for Change pay system incorporates equal pay for work of equal value; as does the NJC for Local Government Services (England, Wales, and Northern Ireland), which covers the largest group of employees for collective bargaining purposes in the UK economy and possibly Europe. UNITE Construction has succeeded to get support for equal pay for all in construction jobs across the sector. This includes an agreement to receive the annual pay review which includes information about race, gender, and age. Such information can highlight the discrimination around pay system, including performance related to pay as well as grading.

ICELAND - In Iceland over the past decade, social partners, with the Icelandic Confederation of Labour (ASÍ) in the forefront, have developed an equal pay management system called “The Equal Pay Standard” meant to help employers prevent salary discrimination. In 2018, legislation was passed mandating companies and institutions with 25 or more employees to implement the Equal Pay Standard. This included that they undergo an audit and receive certification that they offer equal pay for work of equal value. Employers are also expected to renew their equal pay certification every three years. However, the Equal Pay Standard had its limitation as it compared salaries within the same job category within the same company/ unit but did not tackle the systematic cultural and historical problem of women´s work being valued less. Hence, the emphasis is now moving towards the unadjusted pay gap.(re-evaluation of women´s work). This entails government, in cooperation with social partners, heading a Re-evaluation project, focused on correcting the systemic undervaluation of professions where women are predominant. The Re-Evaluation project covers what the Equal Pay standard is unable to do, by looking at differences between unrelated professions and comparing similar jobs across sectors.

 IRELAND - Building upon the 2022 introduction of the Gender Pay Gap Information Act, the Irish Congress of Trade Unions has produced a resource guide for trade unions “Gender Pay Gap Reporting” on closing the gender pay gap and bringing the issue into collective bargaining, focusing on measures promoting pay transparency and against wage discrimination.