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.
