The government has been urged to act on recommendations to bring in ethnicity pay gap reporting to help those from ethnic minority groups ‘reach their full potential’ at work.
A letter from the TUC, CBI and Equality and Human Rights Commission (EHRC) to the Chancellor of the Duchy of Lancaster, Michael Gove, says that making it mandatory for employers to disclose the average pay levels for staff from different ethnic groups would “transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it”.
It says that ministers should set out a clear timeframe for introducing ethnicity pay gap reporting and work with business groups to develop tools and resources that would help organisations collect this data.
Mandatory ethnicity pay gap reporting for large companies was recommended by the Commission on Race and Ethnic Disparities and has been backed by numerous organisations and business groups.
Ethnicity pay gap reporting
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Some organisations have chosen to disclose their ethnicity pay gap, including Lloyds Banking Group and Deloitte.
The letter says: “It will enable employers to identify, consider and address the particular barriers facing ethnic minorities in their workplace, and will complement and enhance the work many already do to address gender pay gaps under existing regulations.
“Reporting, done well, can provide a real foundation to better understand and address the factors contributing to pay disparities.
“Some employers are already voluntarily reporting on their ethnicity data and taking action to address race inequality in their workplaces. While this is welcome and should continue to be supported in the interim, introducing mandatory ethnicity pay reporting will put greater focus on race at work, contribute to a greater number of employers reporting their ethnicity pay gap figures, and achieve the change across the labour market that is required.”
TUC general secretary Frances O’Grady commented: “Everyone deserves the chance to thrive at work, and to have a decent, secure job they can build a life on.
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“But the sad reality is that even today race still plays a significant role in determining people’s pay and career progression.
“This problem isn’t going to magic itself away. Without robust and urgent action many BME workers will continue to be held back.”
