Employers will be able to favour female and ethnic minority candidates
27 June 2008
The government has moved a step closer towards positive discrimination today, as equalities minister Harriet Harman announced plans for firms to be allowed to appoint people based on their race or sex.
Under the equalities bill, employers will be able to favour female and ethnic minority candidates over white male candidates when they are equally qualified for the job.
The bill will also encourage employers to disclose information about workers’ salaries. Public-sector organisations and private-sector firms with contracts in the public sector will be forced to publish equal pay audits. So-called “gagging” clauses in employment contracts – preventing employees from discussing their salaries with each other – will be outlawed.
In a statement to the House of Commons, Harman said: "This package will see us make further progress towards a fair and equal society. In the past, when Labour has brought in laws to promote equality they have been controversial. But I hope that now, in the 21st century, there will be agreement that we must all play our part in making this country fairer."
The CIPD welcomed the bill. Dianah Worman, diversity adviser, said: “Business should be grateful that government has opted for a light-touch approach to pay equality and not introduced compulsory pay audits. But they should recognise that if appropriate action is not taken to address the equal pay issue, then more legislation may follow.
“Law on its own is simply not enough. Government needs to engage employers to take action because it makes business sense. They should publish easily accessible practical guidance for employers to follow, and instigate a national education and awareness campaign with signposts to help and support. Failing to do this will short-change the UK economy at a time when business needs all the help it can get."
The TUC also welcomed the bill. Brendan Barber, general secretary of the TUC, said: “Using procurement to promote equality – an industry now worth £150 billion a year – should also have a major impact on the private sector, where the gender pay gap is nearly nine percentage points higher.” (The pay gap between the sexes in the public sector is 13.6 per cent; in the private sector it is 22.3 per cent.)
The CBI said that mandatory equal pay audits should not be introduced. Deputy director-general John Cridland added: "The government’s plans rightly concentrate on non-legal means of moving forward on equality - such as better use of public procurement and promoting positive action - and the CBI welcomes this.
"But the debate on equality often misses the point. Unlawful discrimination in the private sector is not the main reason why inequalities still exist. The issues are cultural, educational and occupational."
The bill, designed to simplify equality law, will replace eight pieces of legislation covering discrimination on the grounds of sex, race, disability, age, sexual orientation and religion or belief. It is expected to be introduced in to the next Parliamentary session, starting in November.
Earlier this month Harman launched the National Equality Taskforce, which is aimed at scrutinising the root causes of inequality. Academics will investigate the relationships between inequality and sex, race, disability and other factors, such as income and social class. They will report on their findings in late 2009.