SUGGESTED
Labour Market
In the Media
Brexit
Reem Ibrahim, Communications Manager at the free market think tank the Institute of Economic Affairs, said:
“If the Government are serious about achieving economic growth and supporting businesses, they should scrap their misguided commitment to mandatory pay gap reporting. It will add yet more burdens on businesses who are already suffering under the weight of a bloated state and sky-high tax bill.
“Pay is decided by a whole host of factors, including experience, qualifications, and type of work. Mandatory pay gap reporting fails to take into account these key differentials, leading to the assumption that any ‘pay gap’ is caused by discrimination.
“Currently, large companies are required to report on their ‘gender pay gap’ without any context. It led to the bizarre case of EasyJet, in which the salaries of pilots and cabin crew were directly compared with no context, resulting in accusations of a pay gap of over 50% and public demonisation.
“Firms will then attempt to manipulate the published figures to cast themselves in a better light, resulting in a whole host of negative consequences on the very people the Government intend to protect. Firstly, mandatory pay gap reporting incentivises companies to take on fewer women, ethnic minorities or disabled people at entry-level. Secondly, it incentivises companies to outsource work that is usually done by lower-paid women or ethnic minorities, reducing the likeliness of secure contracts.
“We shouldn’t perpetuate victimhood narratives and engage in the politics of naming and shaming. We should not judge people based on their gender or the colour of their skin, but on their individual merit.”
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