Minister keen to narrow gender pay gap

Minister of State with responsibility for equality, Frank Fahey, has said he is committed to seeing Ireland narrow the gender…

Minister of State with responsibility for equality, Frank Fahey, has said he is committed to seeing Ireland narrow the gender pay gap.

Speaking at the launch of an Economic Social and Research Institute study on differences in pay received by women and men, within three years of graduation, Mr Fahey said that while Ireland "is in line with the EU norm with women receiving on average 16 per cent per hour less than men.

"I want Ireland to narrow that pay gap to become one of the best in Europe, rather than the EU average."

The report, Degrees of Equality: Gender Pay Differentials Among Recent Graduates, finds the most significant pay gaps in the private sector. It also finds these pay gaps are already open between men and women just three years after graduation.

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For example, three years after graduating the average hourly wage for men in retail is €12.95 compared with €12.44 for women. In the hotel and catering industries the average hourly wage for men is €11.88 compared with €10.66 for women.

In financial services the difference is €15.94 per hour for men compared with €14.03 for women. The biggest gap is in public administration, where the hourly wage for men is €17.78 and €15.51 for women.

Looking at pay differentials with regard to what the graduates studied, the report finds a "very substantial gender pay gap among law students, with females earning less than 70 per cent of their male counterparts".

There are also significant pay gaps among business studies graduates, states the report.

Though a pay gap is evident in both public and private sectors, the report's authors note: "We find that women earn about 4 per cent less than men in the public sector and 8 per cent less than men in the private sector."

The findings of the report were described as "very, very disturbing" by chief executive of the Equality Authority Niall Crowley. He said it was clear private sector companies must be compelled to make their pay scales and appointments and promotion procedures "open, formal and transparent".

There were many cases on the authority's books of alleged pay discrimination in the private sector which it has been unable to pursue "because we can't get access to the company's salary and personnel details," he added.

Companies' refusal to give such access, he said, was "an ongoing problem". This was making the legislation, which would break down such discrimination, difficult to enforce.

The report finds such practices as bonuses, fringe benefits like cars, meal expenses and employer-provided training, were awarded disproportionately to men

Maria Cronin, Director of European and Social Policy with Ibec said she did "not believe" forcing companies to open their procedures to scrutiny was "the answer".

She said there were cultural barriers to women entering male dominated fields and these needed to be addressed.

The National Women's Council, welcoming the Minister's commitment called on the Government to accelerate its delivery. At a conference today it will discuss progress here following last year's criticism by the United Nations of Ireland's lack of progress in eradicating the gender pay gap.

Kitty Holland

Kitty Holland

Kitty Holland is Social Affairs Correspondent of The Irish Times