StartBeyond TechWomen lose billions during pay transparency delay

Women lose billions during pay transparency delay

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New trade union research reveals the high price being paid by women workers for the delay in the transposition of the gender pay transparency directive. 

The directive adopted in 2023 finally removes the fog hiding discrimination and would help unions negotiate fair pay. 

Member states were given three years instead of the usual two to put the directive into national law. Despite that, just four member states have so far delivered on the crucial legislation. 

An analysis by the European Trade Union Institute shows that this inaction means women workers will continue to lose billions of Euro a year: 

  • The average women worker will continue to be paid 3,800 Euro a year less than men if the current 11% gender pay gap continues;
  • That means the 92,5 million women workers in the EU are collectively losing more than 358 billion Euro a year;
  • The average women worker will be 672 Euro a year poorer compared to if there was a 10% reduction in the gender pay gap as a result of pay transparency;
  • That means the 43 million women working in companies covered by the pay transparency directive will collectively lose 28 billion Euro a year compared to if there was a 10% reduction.

The European Trade Union Confederation (ETUC) says the figures show why member states must finally show urgency in writing the pay transparency directive into their national law.

The European Commission must take infringement action against those who continue to delay.

ETUC General Secretary Esther Lynch said: 

“Every time employers‘ organisations talk about the cost of ‚compliance burdens‘, what they really mean is the cost of not being able to underpay women.

„The cost of pay transparency measures are small for companies but this analysis shows that inaction by national governments will cost women workers billions in lost wages. 

“This is completely unacceptable when women have already suffered decades of pay discrimination. Time is up on the culture of secrecy which has allowed male dominated boardrooms get away with pay discrimination for so long.”

ETUC Deputy General Secretary Isabelle Schömann said: 

“Despite equal pay being enshrined in the EU treaties since 1957, lack of transparency and hidden bias have allowed discrimination to continue in the shadows for almost 70 years.

“This cannot continue. It is economic harm done to millions of women workers and an affront to the rule of law. Any government which continues to avoid their legal responsibility to put this directive into action can expect to be taken to court. The ETUC will stand by the side of women workers and defend their right to equal pay.”

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