The European Union on Thursday unveiled details of a proposed law requiring businesses to disclose gender gaps and give job candidates access to salary information in job interviews. It will also provide women with better tools to fight for equal pay.
The move comes because female workers around the world are being excessively affected by the economic consequences of the coronavirus crisis, and it could lead to sanctions against companies that do not comply.
The proposed law would also enable women to verify whether they are reasonably remunerated compared to male colleagues. The European Commission, the executive arm of the bloc, wants to give workers the ability to seek proper compensation in case of discrimination.
Under the proposed law, those who believe they are victims can act through independent monitors to meet the requirement for equal pay. They can also pursue gender-based salary grievances through employee representatives, as individuals or in groups.
“For equal pay, you need transparency,” said Commission President Ursula von der Leyen, who has promised to make wage transparency binding. after she took office in December 2019. “Women need to know if their employers are treating them fairly. And if that is not the case, they must have the power to fight back and get what they deserve. ”
Although the principle of equal pay for equal work is theoretically one of the fundamental values of the European Union with 27 countries, the difference in salaries of men and women doing the same work is 14.1 per cent and the difference in pensions is 30 per cent. said the commission. According to the European Institute for Gender Equality, a research group, female executives earn a quarter less than men.
Despite several attempts to enforce equal pay in practice, it has seemed beyond the reach of women for more than 60 years, presenting itself as the beacon of human rights and equality. So far, only ten European countries, including Austria, Germany, Italy and Sweden, have introduced national legislation on payment transparency.
The proposed EU-wide law requires approval by member states and the European Parliament. There are concerns that it could be blocked by national governments, as with the European Commission’s proposal to introduce gender quotas on governing bodies. Beware of these possible obstacles, Vera Jourova, the top official of the Bloc for Values and Transparency, calls the proposal on pay ‘pure pragmatism and sound economic calculations’, and emphasizes that gender equality benefits businesses.
“We are seeing a very limited appetite from some member states, and surprisingly from those who have already introduced such measures,” she said. Jourova said. “What gives me hope is that it is much needed.”
Companies with more than 250 employees will have to publicly disclose their gender pay gap, which is of concern to smaller organizations that have suffered severe economic hardship due to the coronavirus.
“I am aware that in times of economic downturn and uncertainty caused by the pandemic, this proposal can sometimes be for some bad times,” said Helena Dalli, the Bloc Equality Commission, stressing that the law is ‘properly proportionate’.
Under the bill, national governments would be required to punish companies that dispute equal pay. Governments can decide on the fines imposed, including financial sanctions, which must be effective and proportionate, the commission said.
The proposal comes as researchers warn that the virus could significantly slow down the advancement of women in the workplace. According to the 2020 Women in Work Index, compiled annually by PricewaterhouseCoopers in 33 developed countries, a consultation, economic damage due to the pandemic, as well as consequences of government policy, are disproportionate to women. This reversed the steady trend for women in employment and led to what the consultation calls a ‘shesession’.
Women’s rights groups welcomed the commission’s initiative. “Information is power: employee transparency will enable employees to know the value of their work and negotiate salaries accordingly,” said Carlien Scheele, director of the European Institute for Gender Equality. “It can help tackle discrimination in the workplace, which can only be a boon to gender equality.”
Employers, aware of the possible legal and economic consequences of the proposal, were cautious in their assessment and blamed what they described as profound reasons for gender inequality.
“Reasonable requirements regarding payment transparency may be part of the answer,” said Markus J. Beyrer, head of BusinessEurope, a lobbying group. “However, the key to improving gender equality is to address the root causes of inequalities, especially gender stereotypes, labor market segregation and inadequate childcare provision.”
Mr. Beyrer said the commission should respect the “powers of the national social partners” and that it should not complicate the management of human resources with excessive administrative burdens and open the way to unnecessary litigation. “
According to Ms Jourova, ‘binding rules’ are needed, not just to rely on the social responsibility that companies accept. “We see it leading nowhere,” she said.