The Equal Pay Act 1970 gave women the right to be treated as equals in the workplace. But 33 years on, traditional influences such as human capital differences, occupational and workplace segregation, part-time working and work-life balance continue to contribute to the pay gap.

In 2002 there were 24,000 applications to employment tribunals concerning equal pay or sex discrimination, with an average award of £19,279. Tribunals have awarded as much as £1.4 million in compensation, so it can be an expensive problem.

The threat of litigation looks set to rise this year with the introduction of an equal pay questionnaire as part of the Employment Act 2002. Female staff will now be able to ask employers for the pay rates of other employees, and the reasons for them. The answers will be admissible as evidence in tribunal claims and legal experts predict this will cause a rash of cases.

Ten years ago, about 4,000 (19 per cent) of the 21,200 professional members of CIPS were women. By September the total number of members and the numbers of female members had increased to 34,500 and 10,900 (32 per cent) respectively. A further 18,000 students are preparing for membership, of which 6,800 (38 per cent) are women. In addition, CIPS records show that in recent years, women are, on average, qualifying at a younger age than their male counterparts.

The equal pay questionnaire, introduced in April, allows employees to challenge their employers to establish whether they are being paid less than a colleague for the same job. Despite the new legislation, and according to the results of a recent survey of human resource professionals by Croner Reward, the majority of UK employers may still not be taking equal pay seriously. The poll (featured on www.humanresources-centre.net) asked the question: “Has your organisation carried out an equal pay review?” About 70 per cent of respondents said “no” and 15 per cent were “unsure”, revealing that most employers are unaware if they have a gender pay gap, leaving them open to unequal pay allegations.

Top-end difference

In the UK, women’s earnings are on average 19 per cent less than those of their male colleagues. This is largely the result of differences at the top end of the earnings distribution, where the growth in men’s earnings has outstripped that of women. An annual survey conducted by Croner Reward on pay and benefits for the purchasing and supply profession shows that remuneration is no better or worse than other professions in the equal pay stakes.

Pay for a female senior purchasing manager is currently around £46,100 - 8.5 per cent below that of their male counterparts (£50,363). However, only around 15 per cent of senior managers are women. Women currently hold around 45 per cent of the job market for buyers and assistant buyers, and in this area women’s pay is typically around 5 per cent lower than men’s.

The equal pay questionnaire allows individuals who suspect they are not receiving equal pay to request details of co-workers’ salaries. Organisations now have a legal duty to clarify and strengthen pay structures and review procedures. Negative press or an employment tribunal could seriously damage a company’s reputation.

The effects of a gender pay gap can also impact on the recruitment, retention and morale of employees. Although the equal pay questionnaire is a positive step towards closing this gap, it does not tackle the root of the problem. Gender continues to be a key influence of remuneration packages.

Given the significant increase in the number of female CIPS members in what was, until recently, a male-dominated profession, scope may exist within each member’s organisation to review their compliance with the act. CIPS members should urge their employers to identify any pay gaps so that they can be addressed or justified on other grounds and therefore minimise any potential risks.

Employers will need to ensure that they:

* Treat men and women equally in their terms and conditions of employment when they are employed in like work, equivalent work and work of equivalent value.

* Demonstrate a difference between the positions that is not gender-related.

* Treat part-time employees no less favourably than their full-time equivalents, unless this is justified on objective grounds.

* Respond comprehensively and promptly to an equal pay questionnaire.

Employees also have a duty to supply the following information on the questionnaire:

* A statement of why they think they are not receiving equal pay, followed by a statement of who they believe their comparators are.

* Factual questions that ascertain whether they are receiving less pay and the reasons why.

From the information provided in the questionnaire, employment tribunals will be able to draw their own conclusions. A recent case saw school dinner ladies in Cleveland, Rhondda Cynon Taff and Bedfordshire councils awarded multi-million pound equal-pay settlements. Similarly, women cleaners, laundry and catering workers employed by the Hartlepool and East Durham NHS Trust secured £300,000 in back pay because they did not receive bonuses. And classroom assistants in Tower Hamlets gained an 18.5 per cent increase as a result of unequal pay.

In most organisations, salary details are kept highly confidential as employers have a responsibility to keep such details classified. This may be one of the reasons why the pay gap has gone largely undetected. However, employers are now paying the price, so it is in their best interests to seek advice and ensure equal treatment in the workplace.

Bridging the pay gap

In conjunction with human resources, procurement directors, or whoever has responsibility for procurement, should:

* Assess current staffing to determine the need, if any, to carry out an equal pay review.

* If a review is deemed necessary, document the process undertaken and results of such a review. Implement corrective actions.

* Establish a procedure for regular and frequent update reviews.

* Establish a procedure to enable the organisation to respond promptly and comprehensively to an equal pay questionnaire from an employee.

Norman Ryan is partnership manager at Croner Consulting, a major UK health & safety and employment law consultancy (01455 897044) and a CIPS member