Christine Buckley, Industrial Editor
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Business groups are stepping up pressure on the Government amid growing fears that the forthcoming Equalities Bill will set new requirements for pay audits in the private sector and increase other regulations.
Employers are concerned that ministers will seek to implement extensive pledges on pay equality given to the unions at Labour's Warwick policy forum last month.
Although Harriet Harman, the equalities minister, did not put plans for mandatory pay audits in the initial outline for the Bill several weeks ago, business groups fear the measure and other requirements may surface in rules and guidance attached to it later.
The Equalities Bill will be drafted in the autumn.
The Warwick agreement between the unions and senior Labour politicians reads: “£160 billion is spent by the public sector on private sector contracts. The equality duty will require public bodies to give due regard to the need to tackle discrimination and promote equality through their purchasing functions. We will use our purchasing power to help private sector contractors to contribute to the delivery of our public policy objectives of greater equality.”
The agreement added: “We will work with the CBI, unions and others to gather evidence of the effectiveness of promoting best practice on equal pay audits.”
Although there have been reports of a rift between Ms Harman and Alistair Darling, the Chancellor, over pay audits and more general equality monitoring in companies, business groups fear that the Equalities Bill could bring yet more requirements.
Susan Anderson, the head of employment policy at the CBI, said: “We are concerned that there will be a harmonising upwards of regulations. Requirements which currently only apply to one may be extended to others.”
The CBI fears that measures, such as employers providing special facilities where appropriate to disabled workers, could be extended to others.
Gemma Taylor, legal adviser for EEF, the manufacturers' organisation, said: “We will be urging the Government to resist any pressure to reintroduce proposals as the Bill goes through Parliament.”
But unions will also be pressing the Government to make solid the pledges given at the Warwick forum.
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