In a landmark test case on gender pay equity, Fair Work Australia has today ruled in favour of giving pay rises to 150,000 of Australia's lowest paid workers in the social and community services sector – the majority of them women.
Fair Work Australia found that their work is undervalued and that gender has been important in creating that pay gap. It awarded pay rises of between 19% and 41% but ruled to phase-in the pay increases over eight years.
The case was brought by the Australian Services Union and supported by the Australian Government.
Nareen Young, DCA’s CEO congratulated Fair Work Australia and the parties involved in the case:
“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.
“The Fair Work Australia decision is of real symbolic importance and reflects a significant change in community attitudes towards ‘caring’ work and women's role in the employment market. We congratulate all parties on this historic step.
“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. The long phase-in period for the ruling is mindful of workplace realities and will make the transition easier for employers,” said Nareen.
Employers are already taking steps to investigate and fix pay inequity within their own organisations added Nareen:
“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.”
For full details on Fair Work Australia’s decision visit: http://www.fwa.gov.au/index.cfm?pagename=remuneration&page=introduction.
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 and non-Executive Director Dr Graeme Russell. For more information call us on (02) 9035 2852.
