Vol. 440 No. 5
5 Mr. Sargent asked the Minister for Equality and Law Reform if he will introduce effective equal pay legislation in view of the fact that the United States State Department's annual report on human rights worldwide found that the average hourly wage for Irish women workers was 60 per cent of that of men.
The most recent statistics available which relate to March 1993 indicate that the hourly earnings of women in manufacturing industry are 70.3 per cent of the corresponding male rate — female weekly earnings are around 60 per cent of the male rate. However, industrial workers as a group include less than one third of all employees and the statistics so based may not necessarily be representative of the labour market generally.
The Economic and Social Research Institute has recently completed research on male-female wage differentials, sponsored by my Department and the EEA, which shows that when all male and female employment sectors are included in the analysis, women's hourly earnings are approximately 80 per cent of men's — a higher ratio than the quoted one. The study provides a more comprehensive analysis of this wage gap, by taking account of several essential factors, including educational qualifications and length of labour market experience.
It concludes that length of labour market experience plays the most important role in the maintenance of the gap in that half of the differential, i.e. 10 per cent was attributable to differing lengths of work experience, arising from women dropping out of the workplace at quite a young age — on marriage or following childbirth — and returning to the workforce in middle age, with a consequential relative lack of workplace experience, relative to their male comparators. The source of the remaining half of the wage gap is uncertain, and a matter for some conjecture, although it may be due to a combination of factors, such as sex discrimination or residual attitudes of this nature. A further possibility includes the greater likelihood of male employees being more available to perform overtime than their female comparators.
In accordance with the commitment given in the Programme for a Partnership Government and re-affirmed in the Programme for Competitiveness and Work, I intend to introduce legislation to amend the Anti-Discrimination (Pay) Act, 1974, and the Employment Equality Act, 1977. The proposed legislation will seek to improve the effectiveness of the anti-discrimination pay legislation and a range of proposals related to such improvements are being considered for possible inclusion in the legislation.
The solution to any differential in pay between men and women does not lie in equal pay legislation alone. Considerations such as composition of the labour market, the differing educational and training choices of men and women and the unequal distribution of family and domestic responsibilities between women and men are all relevant to an understanding of the matter.
I appreciate that there is more than equal pay legislation involved in this issue. What legislation is proposed in that regard? As the Minister identified overtime as being a factor will it form part of the legislation? Is the Minister aware that failure to act quickly in this area may bring us nearer the scenario which exists in other member states, such as Portugal, where, in the textiles industry, companies are letting men go because they are demanding higher wages? Women and children are also being exploited in the workforce. I want the legislation brought in quickly so we will not be forced into that position which seems to be part and parcel of the laissez faire free market in the Community. What is the timescale for this legislation?
I regard the legislation as urgent and it is in the course of preparation in the Department. It is complex and will cover more than gender based issues. It will cover other disadvantaged groups in society such as members of the travelling community, people with disabilities and so on. A number of its provisions will relate to the kind of criteria mentioned by the Deputy. I am not in a position to give details of what will be in the legislation but he and I are at one on the objective. Every possible step will be taken to publish the legislation at the earliest possible date but I am not in a position to give a timescale.
I understand it is customary to give a vague indication of the timescale. Otherwise it sounds as if it might or might not happen. Will it be in this session, this year or during the lifetime of the Government? The problem is worsening as companies are forced to look at their costs. If they can get away with this discrimination, as happened in other member states, they will.
I am cautious about giving commitments on matters over which I have no personal control. With this kind of legislation one is dependent on a number of outside factors. There must be extensive consultation with a wide ranging number of outside organisations representing the various interest groups receiving protection under this legislation, which is time consuming. Framing the legislation is complex. However, I assure the Deputy it is well progressed in the Department and should be published this year.
