The Australian Government today announced it was prepared to provide over $2 billion to deliver a pay rise to 150,000 of Australia's lowest paid workers in the social and community services sector – the vast majority of them women.
Fair Work Australia (FWA) had already found in principle that their work is undervalued and that gender has been important in creating that pay gap. The Government announced it will put a joint submission on equal pay with the Australian Services Union to FWA and, if it agrees to the Government's proposal on the extent of this undervaluation, this will deliver very significant pay rises.
DCA is encouraged by this development as a real step forward in closing the gender pay gap in the sector, said Nareen Young, DCA’s CEO:
“Our society has historically valued the work that women typically do less than the work men do, especially in the community sector but also in the wider economy. Our research shows this occupational and industry segregation accounts for over a quarter of the gender pay gap and must be addressed if there is to be any real progress in closing the gap.
“There is plenty of evidence to support the fact that pay inequity is a serious productivity issue that needs to be addressed, and to do so has clear economic benefits for the nation,” said Nareen.
KPMG research commissioned by DCA noted that closing the gender gap would result in greater competitiveness and economic output as workers would be better matched to their capabilities; companies would reduce costs through lower turnover rates; and individuals with the best skills and firm-specific knowledge would remain with the company. Other research estimated that closing the gap between male and female employment and productivity would have the potential to boost Australia’s GDP by between 11% and more than 20%.
Employers are already taking steps to investigate and fix pay inequity within their own organisations:
“Many of DCA’s members have already implemented pay equity reviews, both as part of bargaining and outside the bargaining system, and DCA has assisted in many of these. We encourage others to follow their lead.
“We know there is strong public support for addressing the gender pay gap. Auspoll polling, commissioned by DCA and EOWA in 2010, showed that 76% of Australians agree that steps should be taken to close the pay gap. While addressing the gap may initially cost more, it will result in significant economic benefits in the longer term,” said Nareen.
For more detail on the Government’s announcement, visit: http://www.kateellis.com.au/newsroom/585/.
Organisations that haven’t yet conducted a pay equity review should consider this soon. DCA assists members with all aspects of gender pay equity, including conducting pay equity audits, and draws on the skills, expertise and knowledge of Research Director Dr Jane O’Leary, non-Executive Director Dr Graeme Russell and Senior Consultant Susan Sieber. For more information on this click here or call us on (02) 9035 2852.
