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Thirty eight years after the Equal Pay Act was passed, Harriet Harman, Labour's deputy leader, will today set out plans to force companies that bid for contracts with the Government to disclose the difference in pay between men and women.
The Government, which believes that most employers treat the Act as if it were a voluntary code from which they can opt out, will also outlaw gagging clauses inserted into employment contracts in a move seen as an attack on large City bonuses.
Ms Harman is particularly concerned about the pay gap in the Square Mile, where women receive on average 45 per cent less than men.
Although the majority of companies will not initially be compelled to disclose the pay gap, Ms Harman has made clear that she will be prepared to legislate if they resist.
The first step will be to force groups that compete for the £160 billion of public sector contracts to separate out the average pay of men and women before they can bid.
But the CBI said that Ms Harman would face opposition. John Cridland, deputy director-general, said: “There is no way the CBI is going to support symbolic figures which are out of context and confuse people.” He said that, while the Government as a customer was entitled to ask for certain standards, raw figures were meaningless.
But a spokesman for the TUC said: “We welcome any move to close the pay gap because it is clear that the voluntary approach has not worked.”
Ms Harman will use powers already in the Companies Act to force through the change and hopes this will start to change the culture of the private sector.
In a second significant initiative, the Government is to outlaw gagging clauses preventing employees talking about salaries. Currently, 25 per cent of contracts contain such a clause, according to ministers. However, the issue is likely to be hotly debated in the City, where open discussion of an annual bonus award is a sackable offence at many banks.
But Mr Cridland said the Government should appreciate the wealth generated by high-earning individuals. He said: “It's a bit like the non-domiciles. Ultimately you have to decide whether you want these people in our society with the tax that they pay.”
Ministers believe that forcing companies to publish data on pay will lead to the compiling of league tables, allowing some employers to be named and shamed. This is being compared with the approach Labour has taken in forcing hospitals and schools to publish information that is then used to grade their performance publicly.
— The tax burden on the poorest households in Britain has risen 11 times faster than among the rest of the population, according to official figures published yesterday. This, along with slower growth in benefits, has resulted in a rise in income inequality for the third year in a row.
The poorest fifth paid an average of 38.6 per cent of their income on direct and indirect taxes last year, up from 36.4 per cent the previous year, but the tax burden for the rest of the population has risen by just 0.2 percentage points over the year to 35.3 per cent.
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Despite the comments, there is remarkably little resistance in Britain to the government running people's lives. We are sliding faster down the slippery slope.
David, Bromley,
James from Singapore - Yes but that's still two very, very long years away. They deliver a fresh kicking every week now. It'll take years to undo the damage they're going to do whilst they dance to their own tune with no support from the electorate
Wendy, Glasgow, UK
As a beneficiary of a priviliged background, will Ms Harman be demonstarting her personal belief in equality by resigning to make way for someone from a less priviliged background than herself ?
brummydoug, Birmingham, England
Equal rights should be equal rights. It can never be right to put in a law that says women and black people can sue a company if they dont get a job while a white man can't. You can't average a company's pay & make comparisons, men & women choose different jobs, & it depends on the type of company.
andy evan, oxford, great (perhaps not) britain
Can we have a law that says equal pay for short balding men to match those of taller men with good hair? The stats prove theres descrimination...why can't I have a law!
andy, oxford, great (perhaps not) britain
What rubbish - and she was hopeless on 5live this morning.
Women will often take time off to have families, and so returning to work will be a number of years behind male colleagues in experience, even if they are the same age. Salary relates to experience, so the woman may well be paid less
Andrew, Cambridge,
Harriet Harman is supposed to represent all of her constituents not just the women and minorities. I guess New Labour hasn't chased enough real Brits out of Britain yet to find employment elsewhere. Once again feminism and racism rear their ugly heads. UKIP and the BNP are looking better.
Douglas Cochrane, Halifax,
Harman is just creating a false sense of female victimhood.
If women don't do much to negotiate climbing pay scales or the career ladder, that's their problem.
Women must learn to take responsibility for their own choices, and stop playing the victim card.
Kash, London,
How entertaining. The equal pay legislation came into being in 1970. Council workers are still waiting for it to make any difference. 38 years and still massive discrimination.
judy, Liverpool, England
Nicholas from London - the aims of Hariet harmon is not to "pay women on average more than men". Why should we get paid more than men - it's about EQUALITY. The goal is to reduce the pay gap for the SAME JOB.
Kelly, Belfast,
Please, please, please do this. I am fed up working in the City and routinely being paid much less than men for the same work and the same results. Companies should stop rewarding networkers who are essentially not working.
H, London,
It is dismaying how people seem to fail to realise that anyone receiving a bonus is subject to the higher rate of tax on that bonus - any measure to restrict such bonuses is bound to have an effect on the tax take. Surely not in anyone's interest in a downturn?
Ciaran, London, UK
I think the UK is missing the point. The reason we are no longer competitive in the world is the hoops that the bosses have to jump through before starting work. The workers in Asia must be laughing their heads off.
C Darken, Nantwich, UK
If on average the choice of women is to focus on their roles outside the workplace, and in being less career driven effecting their long term pay opportunities, for the sake of equalising the pay gap - should we concede to pay women on average more than men?
Nicholas, London, United Kingdom
There should be a clause in ANY local/national government contract regarding FULL employment opertunities/terms, not just gender discrimination.
Martin, Poole, UK
Harriet Harman has to be the least talented Governet Minister of all time.
Blair had the sense to sack her , she should have stayed sacked.
Only in the U.K. would someone as average as her rise to the position of goverment minister.
Still the good news is that Labour are out at the next election
James, Singapore, Singapore