Finance

Calls for ethnicity pay gap reporting to be mandatory in UK

A UK professional body is calling for ethnicity pay gap reporting to be made mandatory to improve workplace equality.

The Chartered Institute of Personnel and Development (CIPD) said it had carried out research which indicated just 13 FTSE 100 companies currently report any ethnicity pay gap.

The membership organisation for human resources staff has also launched a guide to help employers collect and analyse data.

According to the CIPD, few of the UK’s top companies have voluntarily reported their ethnicity pay gaps, despite many firms condemning racism and discrimination following the Black Lives Matter protests in 2020.

Peter Cheese, chief executive of the CIPD, believes ethnicity pay reporting is an “important lever” for businesses and their stakeholders to assess if and where inequality based on ethnicity exists in the workforce.

“While it’s positive to see some organisations voluntarily report their ethnicity pay, it’s clear that progress is slow and reporting is very inconsistent,” he said.

“Some companies just report their data while others report a commitment without sharing the data behind it.”

Mr Cheese said gender pay gap reporting had “driven greater transparency and accelerated progress”, adding he believed the same was needed for ethnicity pay reporting.

“Mandatory reporting of data, and the associated narrative that shows understanding of the data and the actions being taken to improve, for both ethnicity and gender pay, will help create fairer workplaces and societies and kickstart real change,” he added.

In March, the race disparities commission published its recommendations to government, including advice to companies and public bodies to no longer use the term BAME, which stands for Black, Asian and Minority Ethnic.

Sado Jirde, the head of the Black South West Network (BSWN), said at the time the Government should not get distracted by semantics surrounding the term and instead should be making “measurable” changes to address systematic inequalities.

Taranjit Chana of the GMB union said ethnicity pay gap reporting was not about quotas or box ticking, but about “fairness and common human decency”.

She said: “Why are only 6% of top jobs in the NHS and 3% of police chief inspectors black, Asian and minority ethnic workers?

We’re celebrating the success of the UK’s black-owned businesses – and we want to tell you all about them in our #IAMBOB newsletter!

Once a month, we share news, features and comment from companies led by black business leaders – from start-ups and SMEs to blue-chip corporations and household names.

Please enter your email and select ‘black-owned businesses’ over on our Business Live email centre.

“The UK urgently needs an ethnicity pay gap enshrined in law to tackle this rampant inequality.”

A Government spokesperson said: “Building a fairer economy means ensuring the UK’s organisations reflect the nation’s diversity. The Commission on Race and Ethnic Disparities published its independent report earlier this year, which included recommendations on ethnicity pay reporting.

“We are considering the commission’s findings on this matter alongside feedback to our consultation on this issue and other work, and will respond to the commission’s report in due course.”

We’re celebrating the success of the UK’s black-owned businesses – and we want to tell you all about them in our monthly #IAMBOB newsletter. To sign up, enter your email and select ‘black-owned businesses’ over on our Business Live email centre.

Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button