Direct Request (CEACR) - adopted 2010, published 100th ILC session (2011)

Equal Remuneration Convention, 1951 (No. 100) - Australia (Ratification: 1974)

Gender pay gap. The Committee notes the reference to the increasing gender pay gap in the Government’s report, as well as in the comments of the Australian Council of Trade Unions (ACTU). The Committee notes that according to the Australian Human Rights Commission in its report entitled “2010 Gender Equality Blueprint”, the gender pay gap is 18 per cent on the basis of full-time adult ordinary time earnings, and rises to 33 per cent if women’s part-time and casual earnings are considered. The report confirms that the gap has widened over the past four years. The Government acknowledges that the gender pay gap is a continuing problem and that more needs to be done to reduce it, including recognizing the range of factors contributing to the gap, including gender segregation in the labour market, women’s higher propensity to spend long periods out of the workforce or to work part time, and methods of setting remuneration. The Committee also notes that, in this context, the House of Representatives’ Standing Committee on Employment and Workplace Relations was asked to conduct an inquiry into pay equity. Its report entitled “Making it fair: Pay equity and associated issues related to increased female participation in the workforce” of November 2009, sets out a range of recommendations with a view to closing the gender pay gap, including proposing specific amendments to the Fair Work Act 2009, giving greater powers to the Sex Discrimination Commissioner to initiate complaints and act on wage discrimination, the establishment of a specialized Pay Equity Unit within Fair Work Australia, and improved data collection and analysis. The Australian Human Rights Commission in the Gender Equality Blueprint report also provides specific recommendations on closing the pay gap, including developing a national pay equity strategy and putting in place measures to promote greater transparency in relation to pay rates. The Committee also notes the Government’s indication in this context that it has committed to reviewing the Equal Opportunity for Women in the Workplace Agency. Welcoming the Government’s commitment to addressing the increasing gender pay gap, and the inquiries undertaken in this context, the Committee asks the Government to specify the follow-up being given to the recommendations of the Australian Human Rights Commission and the House of Representatives Standing Committee on Employment and Workplace Relations with a view to closing the gender pay gap, and the role of employers’ and workers’ organizations in such follow-up. Please also indicate progress made in the review of the Equal Opportunity for Women in the Workplace Agency, and any recommendations made and follow-up in this regard. Noting the report of the Australian Government Office of Women and the Minerals Council of Australia on attracting and retaining women in the Australian minerals industry, the Committee would welcome further information on the extent to which the recommendations of the report have been implemented in the private sector minerals industry, and any impact this has had on the significant gender pay gap in that industry.

Article 1(a) of the Convention. Remuneration. The Committee notes the Government’s statement that the term “remuneration” in the Fair Work Act encompasses monetary entitlements in addition to wages. However, the Committee notes that there is no specific definition of remuneration in the Act, and that the definition set out in the Government’s report does not appear to include all additional emoluments whatsoever, payable directly or indirectly, whether in cash or in kind, as required under Article 1(a) of the Convention. It further notes that one of the specific amendments recommended by the House of Representatives’ Standing Committee is to broaden the definition of remuneration to include direct or indirect payments, in cash or in kind. The Committee asks the Government to provide information on any steps taken or envisaged to include a specific definition of remuneration in the Fair Work Act that is consistent with Article 1(a) of the Convention.

Article 2. Measures to promote equal remuneration. The Committee notes that a range of measures continue to be taken to promote the principle of the Convention at the federal and state levels. The Committee notes in particular the individualized pay equity reports provided to 26 public service agencies in Western Australia, and the Pay Equity Toolkit, which includes a pay equity audit tool, developed by the Pay Equity Unit of Western Australia, as well as the establishment of an employer recognition programme to recognize good employer practices in promoting pay equity and work and family balance by the Victoria Working Families Council. The Committee asks the Government to continue to provide information on the measures taken to promote equal remuneration for men and women for work of equal value at the federal and state levels, including the results achieved.

Article 3. Objective job evaluation methods. The Committee notes the Government’s indication that, in the light of the new equal remuneration provisions in the Fair Work Act, objective job evaluations become a key element. The Committee notes the definition of “work value reasons” set out in section 156(4) of the Act, relating it to the nature of the work, the level of skill or responsibility involved in doing the work, and the conditions under which the work is done. The Committee asks the Government to provide specific information on the methods used to compare different jobs to determine equal or comparable value under the Fair Work Act, and the outcome of such job evaluation processes. The Committee would also welcome further information on the impact of the gender quality audits undertaken in Victoria, and the progress achieved in Western Australia to develop a more gender–neutral job evaluation and classification system in the public sector.

Parts III and IV of the report form. Supervision and enforcement. The Committee notes that the equal remuneration orders made by Fair Work Australia under the Fair Work Act are enforced in workplaces by the Fair Work Ombudsman, who can bring an action against employers for lack of compliance (section 682). As the obligation to comply with an equal remuneration order is a civil remedy provision, an equal remuneration order may be enforced by the courts. The Committee notes further the Government’s indication that Fair Work Inspectors assist employers and employees to comply with their obligations under the equal remuneration provisions of the Fair Work Act, and the Fair Work Ombudsman also provides practical information, advice and assistance, and is planning to prepare a guide on pay equity issues as part of its new function to develop best practice guides. The Committee also notes the decision of the Queensland Industrial Relations Commission regarding the Queensland Community Services and Crisis Assistance Award – State 2008, increasing award rates for work that had been historically undervalued. The Committee asks the Government to provide information on any violations of equal remuneration orders or other equal remuneration provisions of the Fair Work Act brought to the attention of the Fair Work Ombudsman, the Fair Work Inspectors or the courts, and any action taken, including any remedies provided or sanctions imposed. Please also provide information on any legal or administrative decisions at the state level relevant to the principle of the Convention.