LRD guides and handbook July 2021

Law at work 2021 - the trade union guide to employment law

Chapter 7

Reporting of pay gap data for other protected characteristics

[ch 7: pages 284-285]

A government-commissioned review, the McGregor-Smith review into racism at work published in February 2017, concluded that the UK economy could be boosted by around £24 billion a year if black and minority ethnic people had the same opportunities as their white co-workers. In particular, the review recommended that employers of 50 or more workers be required to:

• publish their ethnicity pay gap;

• draw up five-year aspirational diversity targets; and

• nominate a board member to deliver on the targets.

A consultation by the May government on mandatory reporting of the ethnicity pay gap by employers of 250 or more staff closed in January 2019, but no further steps have been taken.

The pandemic has exacerbated an already bad situation. According to TUC analysis, the rate of employment of BAME workers fell 26 times faster than the equivalent for white workers over this period. BAME workers also suffer worse mental health, are more likely to be in insecure work and to suffer severe illness from COVID. Where it applies, unions can use the public sector equality duty (see below) to promote the publication of pay gap data relating to protected characteristics such as race or disability, helping the employer to meet its statutory duty to “eliminate discrimination, advance equality of opportunity and foster good relations” across all the protected characteristics.