Advancing Equal Pay at Home and Abroad

On 6 September 2021, the world’s top women legislators gathered in Vienna for the 13th Summit of Women Speakers of Parliament, hosted by the Inter-Parliamentary Union, the Parliament of Austria and the United Nations. The Summit was held on the occasion of the Fifth World Conference of Speakers of Parliament. Twenty-eight women Speakers of parliament attended, the first global in-person gathering for many of the participants in nearly two years.
The theme of the Summit was Women at the centre: From confronting the pandemic to preserving achievements in a gender-responsive recovery. Speakers of parliament discussed women’s essential role during the pandemic as well as how the post-pandemic recovery could lead to progress in gender equality.
Interactive panel debates were held during the 13th Summit of Women Speakers of Parliament
The economic downturn brought about by the pandemic added to existing inequalities in many ways. Women typically earn less and have less secure jobs than men. With plummeting economic activity, women are particularly vulnerable to layoffs and loss of livelihood. During the first month of the pandemic, informal workers worldwide lost an average of 60% of their income. Some of the sectors hardest hit by the pandemic are feminized sectors, such as the retail, beauty and hospitality industries. Women also have less access to land and capital, which makes it harder for them to bounce back and rebuild their businesses.
Women also lead on the frontlines of the pandemic response. They make up 70% of the global health and social care workforce. They are more likely to be frontline health professionals, especially nurses, midwives and community health workers. These professionals are sacrificing their health for the safety of society.
Furthermore, the pandemic has increased care and domestic work, which disproportionally falls on women. Women do 2.6 times more care and domestic work than men. Most of this work is unpaid, which means that even if women’s domestic care workload is increasing, their gainful employment is not.
Participants during the 13th Summit of Women Speakers of Parliament
During the Summit, the women Speakers of parliament discussed the need to value and redistribute the unpaid domestic care work that burdens many households. While it is important to financially support and even compensate domestic care work, there is also a need for strong incentives to keep women in the workforce. Thus, through their debates, the Speakers agreed that domestic care work must not be seen as just a women’s job but one that should be equally shared between men and women.
The participants acknowledged that the gender pay gap is a sum of different factors; one of which is cultural expectations of caregiving. Even in situations where women and men are both working full time, a woman is more likely to spend more time on childcare or household activities. This affects the likelihood of a mother getting promoted as opposed to a man, and from there their earning potential diverges. There can be no equality in the workplace if there is no equality in the home.
Thus, the Speakers of parliament discussed the urgent and concerted efforts to transform traditional expectations of family roles towards the thinking that domestic work is equally a man’s and a woman’s job. Moreover, policies must be put in place that incentivize both women and men to share the burden, through paid parental leave and child support.
Beyond this, the Speakers of parliament talked about the need for universal and gender-responsive social protection schemes. Today, 60% of women are not covered by any type of social protection. Social protection is an integral aspect of the discussion on economic growth and gender equality. For many of the participants, there is no bigger discrimination than exclusion from pensions and social security.
Such findings are very much in line with those reached by women members of parliament in April 2021, when the IPU held an inter-parliamentary dialogue on gender-responsive recovery post-COVID-19 focusing specifically on women’s economic empowerment.
For women parliamentary leaders, what is needed is a transformation of the economy through a feminist lens. The COVID-19 crisis provides an opportunity for transformation and to give a clear message of what has to be changed. It is parliamentarians’ duty to lead the feminist transformation of our global system, the just allocation of resources and equal opportunities in the economy. And women Speakers are eager to lead the way.
By: Thea Lee, Wendy Chun-Hoon
Today, we were honored to speak at an International Equal Pay Day 2021 celebration representing the United States, which has recently joined the Equal Pay International Coalition, or EPIC. We are proud to join other EPIC members – including governments, trade unions, businesses and civil society organizations – to work together to eliminate the gender wage gap.
Here at the U.S. Department of Labor, we are putting women at the center of recovery efforts to ensure that we build back stronger and better in the United States and around the world. We are working to increase pay transparency, disrupt occupational segregation, eliminate gender-based employment discrimination, and increase access to paid leave and care for children, older adults, and persons with disabilities to build the economy we all need to thrive.
Around the world, women typically are paid 23% less than men. The pandemic has exacerbated the many challenges women face in the labor market both at home and abroad. Here in the United States, women, especially women of color, have faced some of the steepest job losses due to the pandemic. They also continue to be over-represented in low-paying jobs, especially in the care sector. Many lack access to the paid leave and health care they need to take care of their own families. To help advocate for equity in wages, the department’s Women’s Bureau developed an Equal Pay Day Toolkit with interactive maps and graphics.
The department’s Bureau of International Labor Affairs, or ILAB, works globally to eliminate the gender pay gap by combating violence and harassment, strengthening women’s voices at work, and improving the quality of jobs. For example, ILAB is promoting gender equality and good jobs in the global garment sector through our support of the International Labor Organization’s Better Work program. Better Work factories have reduced gender pay gaps and increased their productivity and profitability by training female supervisors, reducing incidents of sexual harassment and supporting workers’ rights, especially for women.
We are eager to share our insights and good practices gained from our domestic and international efforts to close the wage gap and, in turn, learn from other EPIC members.
Closing the gender wage gap will require concerted efforts from all stakeholders: government, workers’ and employers’ organizations, businesses and civil society. Joining EPIC and its multi-stakeholder coalition is an important step towards achieving the vision of an equal and inclusive world of work.
Wendy Chun-Hoon is the director of the Women’s Bureau. Follow the Women’s Bureau on Twitter at @WB_DOL.
Thea Mei Lee is the Deputy Undersecretary for International Affairs. Follow ILAB on Twitter at @ILAB_DOL.
We are pleased to inform you that the EPIC legal database is now complete. It provides information on equal remuneration for work of equal value set out in national law and practice using the provisions of the ILO’s Equal Remuneration Convention, 1951 (No. 100) as a benchmark. The database collects information on whether the domestic legal framework mandates equal remuneration for work of equal value, has wage transparency and minimum wage laws. It also has information on whether the principle of equal remuneration for work of equal value is included in collective agreements.
The EPIC database provides information on 188 countries and territories. Respective governmental counterparts reviewed and validated the information presented in the EPIC database for 142 countries and territories. The information presented for the other 46 files has not yet been validated.
The database shows that there are considerable legislative gaps on an international level.
– 56% of the evaluated countries and territories mandate equal remuneration for women and men workers for work of equal value.
– In recent years, member States and reviewed territories have adopted measures to actively fight the gender pay gap. 36 out of 188 reviewed member States, which constitutes less than 20%, have proactive wage transparency laws and measures to address the discriminatory pay gap.
– Collective bargaining remains one of the strongest tools in the arsenal of employers and workers to close the pay gap between women and men. Yet not many collective agreements include provisions on the principle of equal remuneration for work of equal value.
Visit our database and watch the video. Help us disseminate this information among your networks.
Laws on pay transparency in Switzerland, France, and the UK, the long-awaited EU draft directive for more transparency, and a strengthening of the right to “Equal Pay for work of equal value” at the European Court of Justice – in the shadow of the pandemic, there has been some encouraging momentum for fair pay. But what is the current state of play? How does this all affect countries and companies? And what needs to be done now? This is what speakers, experts, and interested parties from around the world discussed at the digital International Pay Transparency Conference on July 28, 2021. Here are the results.
Fair pay is on everyone’s radar. Various laws on fair pay have been published, adopted, and implemented in the last years. Their overarching theme – pay transparency. UK has rigorous reporting mechanisms, Iceland established a groundbreaking Equal Pay Standard, France ranks companies on the Gender Equality Index. Just weeks ago, Spain passed two laws enforcing the obligation for companies to audit their pay structures and Ireland followed the British example and introduced reporting standards for companies.
This March, the European Commission also published a draft directive on fair pay. It has been long-awaited, and the proposal is bold: It combines the best practices from across Europe – obligations for companies on reports, audit, a right to information for staff, but most importantly, it shifts the burden of proof to companies and introduces fines and sanctions. And the European Court of Justice just recently ruled in favor of fair pay, especially specifying on the principle of equal pay for work of equal value. A truly international reunion
The time was just ripe to mingle and discuss all these progresses made on pay transparency. The FPI once again teamed up with the Equal Pay International Coalition, and with the support of the Berlin office of the International Labour Organization, brought together international speakers and experts on fair pay in the International Pay Transparency Conference. And the conference was truly international: with speakers and guest from the US, UK, Iceland, Spain, Italy, Belgium, India, and Saudi Arabia – representing companies, trade unions, employer’s organizations, NGOs, and government.
The necessity of pay transparency
When entering discussions on fair pay, one often gets to hear phrases like, “it’s so complicated to calculate all those gaps” or “we have no gaps”. Not on this occasion: Thomas Fischer, Head of Unit in the German Ministry of Family Affairs noted that “we are moving the discussion away from burdens and questions of sheer compliance towards pay transparency as a necessary tool.” Indeed, all speakers agreed that transparency is an absolutely essential means to put fair pay into practice. It is not up for discussion, only the question of how transparency is implemented and what shade of transparency is fitting to the organization’s culture. Marcus Priest, Global Head of Rewards at the international pharmaceutical company Novartis described the company’s engagement in the Equal Pay International Coalition and their way to transparency: “Fair pay is part of the open and transparent culture we are building at Novartis.” Christine Theodorovics, Chief Strategic Development Officer at the international insurance company AXA Group agreed: “There is no magic recipe to fair pay, but many different components will lead to success.” In any way, the key components are commitment – both internal and external – and a dedicated budget to close gaps. Margrét Bjarnadóttir, founder of the Icelandic software company PayAnalytics further elaborated: “Apart from closing pay gaps, it is important to integrate pay equity considerations into compensation processes in order to keep the gaps closed.”
Sanctions, sanctions, sanctions
On the legislative side, the speakers welcomed that so many legal initiatives are currently out there. Dr Maria Concetta Corinto, Director at the Italian Ministry of Labour and Social Policies called out: “We absolutely support this directive!” Although not all speakers fully supported the current proposal by the European Commission, all agreed that fair pay related issues, such as combating stereotypes and providing adequate care facilities are equally important. Two major points have been raised when it comes to legal requirements. Firstly: sanctions, sanctions, sanctions. Katharina Miller, President of the European Women Lawyer Association explained: “Without sanctions, nothing works in social rights.” And secondly, reaching fair pay always comes with measuring pay gaps. But measuring gaps can have very different notions. Marie Konstance, Project Lead at the international organization Catalyst, elaborated that “everyone should measure results, not inputs, to show progress – even if the number are not perfect.”
The pandemic’s impacts on gender equality
Of course, the International Pay Transparency Conference also shed a light on the ongoing COVID-19 pandemic and its impacts on gender equality. The panel also highlighted the point that there is no backlash because of the pandemic but “women were expected to step down during the COVID pandemic” making “gender equality the unfinished revolution”. Harry Kyriazis, Chairman of the Social Affairs Committee at Business Europe, further noted that “BusinessEurope and its national member organizations, are all strongly committed to gender equality; that is why we engage constructively in the debate on the draft Directive and on other measures that may effectively reduce the gender pay gap”.
The International Pay Transparency Conference clearly showed: Pay transparency is a suitable tool to close pay gaps and to keep them closed. Not only companies and civil society actors have demonstrated their support for fair pay. Also participants on the political side stressed clearly: “There is an overarching coalition in the European Parliament and the European Commission to push further for fair pay.” Transparency may have different facets, but all speakers agreed that without transparency, gaps will remain open. The German Minister for Family Affairs Christine Lambrecht concluded that “the discussion about the European Commission’s proposal on pay transparency is finally where it belongs – in the public eye.”
Results & outlook
The conference white board with major takeaways is available for download here:
Miro Board International Pay Transparency Conference 2021
Conference Talks
Missed the conference? The panels are still available for viewing under the following links:
• Introducing the Equal Pay International Coalition
• Pay transparency: Sharing international perspectives
• Pay transparency: Putting into daily practice
Resources and links:
During the event, an impressive number of further resources and links were mentioned by our experts from all over the world. We have listed a selection here for anyone interested in exploring the topic of Pay Transparency in deeper detail:
• Fair Pay Around the World article series: https://www.fpi-lab.org/en/fair-pay-around-the-world-2/
• The Universal Fair Pay Check explained in 150 seconds: https://www.youtube.com/watch?v=aipipvDk4BE
• Friday Coffee Talk from Planet Fair with a special edition on the main takeaways from the International Pay Transparency Conference: https://www.youtube.com/watch?v=Vs7OR1hSjHo
• Equal Pay International Coalition: https://www.equalpayinternationalcoalition.org
• ILO Global Wage Report 2018/19 – What lies behind gender pay gaps: https://www.ilo.org/wcmsp5/groups/public/—dgreports/—dcomm/—publ/documents/publication/wcms_650553.pdf
• OECD Gender Data Portal: https://www.oecd.org/gender/
• UN Women – Generation Equality Forum Global Acceleration Plan for Gender Equality: https://forum.generationequality.org/sites/default/files/2021-06/UNW%20-%20GAP%20Report%20-%20EN.pdf
• Business Europe on the European Commission’s draft on pay transparency: https://www.businesseurope.eu/sites/buseur/files/media/position_papers/social/2021-05-05_pp_pay_transparency.pdf
• ETUC on the European Commission’s draft on pay transparency: https://www.etuc.org/en/document/briefing-note-etuc-response-european-commission-proposal-directive-strengthen-application
• ETUC initiative “Equal Pay Needs Trade Unions”: https://www.etuc.org/en/document/equal-pay-needs-trade-unions-sign-pledge
• Court Case on fair pay in Germany Birte Meier ./.ZDF: https://newsrnd.com/business/2021-06-26-birte-meier–zdf-reporter-receives-thousands-of-euros-less-than-her-colleagues-every-year.HkyNsv4h_.html
• Gender and Diversity KPI Alliance: https://www.gdka.org/news-and-events/
An intergenerational dialogue on closing the gender pay gap for Generation Equality – Tuesday, 29 June 2021
The Equal Pay International Coalition hosted an intergenerational dialogue as part of the momentum-building sessions in the countdown to the Generation Equality Forum in Paris (30 June – 2 July), bringing together thought leaders from across regions and sectors at different stages of their careers in conversation to discuss how the pay gap reflects in the life cycle, and how to address the gap through a multi-regional, intergenerational and intersectional lens.
Jeevika Shiv, social worker, lawyer and National Gender Youth Activist from India, moderated the dialogue and opened with an interactive audience question on defining ‘decent work’. Fairness, equal opportunities, respect, safety, and social protection were some of the key terms underlined by event participants, reflecting a collective consciousness and awareness of gender-responsive economic rights and principles.
The moderator then addressed four guest speakers, asking each of them to share their personal experiences or the experiences of their peers and colleagues in their respective contexts, as well as their current or past advocacy for pay equity and workplace inclusion.
H.E. Senator Patricia Mercado of Mexico opened the dialogue with a reflection on her work as a young advocate for women workers in the automotive and textile industries. Senator Mercado recalled that in the early 1980s, at a time of technological innovation and increased automation, Mexican women began taking on more technical and traditionally ‘masculine’ jobs, despite being compensated at the same rate of their original roles.
Natalia Carfi, Interim Executive Director of the International Open Data Charter, cited her lack of exposure to concepts like the ‘glass ceiling’ and equal pay until after she had already received a university degree in Argentina. She shared that women in most contexts do not have the tools for navigating workplace discrimination because people are simply not talking openly about issues like the pay gap – even in elite academic contexts. This led Carfi to co-found Open Heroines, a global group of over 600 members who work in the fields of open government, open data and civic tech that provides safe virtual spaces where women can meet like-minded women and share experiences, advice, and words of encouragement.
Sherry Hakimi, Executive Director of genEquality and Commissioner in the New York City Commission on Gender Equity, shared her experience as a 16-year-old high school student working as a cashier and getting paid not only one dollar less than her male colleagues, but also less than the legal minimum wage in the U.S. state of Massachusetts at the time. She went on to underline the importance of pay transparency and the significance of having open conversations about equal pay.
Mohamed Ali Raddaoui, National Gender Youth Activist from Tunisia and queer-environmentalist activist in the MENA region, shared current feminist strategies and movements taking shape in Tunisia to ensure equal pay in the agricultural sector, including by demanding equal heritage laws that would allow women to own farmland. In his intervention, Raddaoui drew upon broader issues related to equal pay and workplace inclusion by highlighting the struggle of queer communities in the Arab States. He stressed that informal sectors – including sex work – remain the main options for LGBTIQ+ victims of social and economic exclusion, especially for trans and intersex people. It is therefore critical, Raddaoui explained, to include LGBTIQ+ voices in the fight for equal pay, as well as the industries in which they work.
The next audience question tackled men’s behaviour in the post-pandemic context, as the role played by men in care duties has a direct impact on women’s access to decent work. The moderator asked participants if they believed men would continue to perform higher levels of unpaid care work as pandemic restrictions are lifted. While 35% of participants responded “no”, the positive uncertainty of most respondents demonstrated an underlying hope for change following a uniquely turbulent period.
As the event came closer to its conclusion, the moderator launched an informal discussion by asking speakers to delineate the role of traditionally powerful figures in companies, governments and organizations in promoting decent work for women in all their diversity and in reducing the gender pay gap from an intersectional lens.
Sherry Hakimi stressed the need for leaders to become more radically accountable to those most deeply impacted by the pay gap, highlighting as an example the significant gap for Black, Latina and migrant women in the United States, particularly for those working in the care economy. Mohamed Ali Raddaoui identified key actors who are mainly responsible for promoting and ensuring pay equity depending upon context, including labour unions, human resources managers and agencies, governments, and business owners.
While UN entities, civil society and youth-led organizations, governments, the private sector and employers’ and workers’ organizations are fully engaged in closing the pay gap in the context of the Generation Equality Forum and beyond, speakers agreed that much more needs to be done in every context. Allowing the pay gap to linger or even widen due to the economic challenges posed by the pandemic could seriously undermine important gender equality achievements and gains made over the last few decades.
It is in this context that EPIC remains committed to the achievement of equal pay for all and that EPIC members will support the realization of the transformative goals of the Generation Equality Forum at the global, regional and national levels.