Equality
and Human Rights Commission calls for practical approach to equal pay crisis following
landmark judgement - Press Release
29 July 2008
In a landmark judgment today, the Court of Appeal has accepted the Equality
and Human Rights Commission's call for a practical approach to
help resolve a surge in equal pay cases threatening to bring the tribunal system
to a grinding halt.
The
judgment, which sets a far-reaching precedent, comes as figures reveal equal pay
claims for local authority and national health service staff have continued to
rise at an alarming rate.
Women
in the public sector working in jobs such as dinner ladies and cleaners have long
been underpaid for doing work of equal value with their male counterparts. The
Equality and Human Rights Commission intervened in the case of Bainbridge v. Redcar
and Cleveland Borough Council to clarify the best way to bring women's pay in
line with men's as speedily as possible, while also taking into account the financial
impact faced by the public sector.
The
Commission argued that so called 'transitional arrangements' -- when an employer
protects the pay of an existing employee, most often men, while taking steps to
equalise pay -- could be lawful.
In
some circumstances, the Commission believes such arrangements may be a practical
and necessary intermediate step, provided the employer consults the women involved,
tackles the matter as quickly as possible and in a way that disadvantages the
women to the least extent possible.
The
Court of Appeal accepted the substance of the Commission’s argument, setting an
important precedent that will help pave the way for a faster resolution to the
deepening quagmire of equal pay in local government. Today's ruling means that
whenever possible cases can be kept out of a slow and costly legal system in favour
of negotiated settlements that brings women and local councils some measure of
certainty sooner, rather than later.
John
Wadham, Legal Group Director at the Equality and Human Rights Commission, said:
'The
quagmire of equal pay in local government needs to be ended now, and the thousands
of women involved deserve money in their pockets now-- not in another ten years
time.'
'There
is no simple solution. But it may not always be possible to deliver change overnight.
Practical and fair transitional arrangements are necessary but it is right that
we set a strict test for when these arrangements can be justified. Without them,
employers may simply turn a blind eye to the problem until forced by a slow and
overburdened legal system to deliver. Litigation is not enough. We need other
tools to deliver change, including negotiated settlements.'
Largely
driven by claims brought by women working in local government, the number of equal
pay claims lodged in tribunal have spiralled in the last year. Figures from the
tribunals service showed a 155 percent increase over the past year, with claims
now topping 44,000.
Commission
analysts estimate that the total number could rise to over 150,000 in coming years,
placing a considerable stress on the tribunal system and resulting in further
delays for thousands of women, many of whom have already been waiting for over
a decade.
The
Bainbridge case involved up to 800 of those women, who largely worked as care
and catering workers. They had been fighting for equal pay with their male colleagues
in a case that has now gone on for more than four years.
The
Commission could not support the Bainbridge claimants directly, as the thrust
of their legal argument was that such transitional arrangements should never be
lawful.
Without
the option of practical and reasonable solutions such as transitional arrangements,
the Commission was concerned that employers would avoid taking active steps to
uncover pay differences and setting things right for fear they wouldn't have the
resources to address the differences immediately.
The
court drew tight parameters around the circumstances where such 'transitional
arrangements' could be justified. On the basis of the facts in the case in Bainbridge,
the Court ruled that the justifications put forward by the councils in question
did not meet the test, and the claimants in the case were successful.
However,
the claimants in Bainbridge were not successful on the basis of their original
argument that such arrangements were in themselves unlawful, but that the arrangements
in these circumstances could not be sufficiently justified.
Notes
about this Press Release
In
January 2008, the Equality and Human Rights Commission announced that it would
not support the claimants in the case of Bainbridge v. Redcar and Cleveland Borough
Council directly. Instead, the Commission applied to 'intervene' in the case,
in the interest of making arguments to the court to clarify the law on the issue
of transitional arrangement -- and set a precedent that could help deliver equal
pay faster. The Commission was concerned a precedent in this case could take away
the freedom of unions, employers and employees to negotiate sensible, workable
solutions that could help keep these claims out of an increasingly over-burdened
tribunal system.
The
Equality and Human Rights Commission is a statutory body established under the
Equality Act 2006, which took over the responsibilities of Commission
for Racial Equality, Disability
Rights Commission and Equal
Opportunities Commission.
The
Equality and Human Rights Commission is the independent advocate for equality
and human rights in Britain. It aims to reduce inequality, eliminate discrimination,
strengthen good relations between people, and promote and protect human rights.
The
Equality and Human Rights Commission enforces equality legislation on age, disability,
gender, race, religion or belief, sexual orientation or transgender status, and
encourage compliance with the Human Rights Act. It also gives advice and guidance
to businesses, the voluntary and public sectors, and to individuals.
