DML Gender Gap Report | 2021 by Caledonian MacBrayne

GENDER PAY GAP REPORT | 2021

1. Introduction This David MacBrayne Group Gender Pay Gap Report reviews gender pay gaps in each subsidiary and sets out the Group’s aim, which is to provide equal pay for work of equal value and ensure that pay systems and processes are objective and free from bias. The Report responds to the CalMac Ferries Limited statutory obligation to report pay gaps in terms of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations), with the last statutory report published in April 2021. This Report also provides additional information on pay gaps in Group subsidiaries, which have less than 250 members of staff, or are situated outwith the jurisdiction of the Regulations. A Technical Note is supplied as an Appendix which provides guidance on how the data has been analysed and definitions of terminology used. 2. COVID-19 The ongoing pandemic continues to affect how and where we work, and we are conscious that the impact of the virus has not been equal and has added further complexity to national inequalities. We note that there has been an annual increase in the Scottish and UK gender pay gap, which has been on a downtrend for 10 years. Nationally, the pandemic affected part time workers more than full time, and 75% of the part time workforce are female. With schools and childcare shut down to stem the spread of the virus, women across all industries and occupations saw critical support to their career disappear. We are pleased to note that this increase has not occurred in our subsidiaries, which continue to show incremental positive changes in the gender pay gap. We were able to top up furlough from the statutory 80% to the full rate, and we anticipate that this has supported mitigating the impact of the pandemic on our staff. We have taken a range of steps to support staff during the pandemic, and these steps will complement the aim to address the gender pay gap and support the career progression of female staff. As well as topping up furlough: •

•

The furloughing decision process considered personal circumstances, and prioritised not just staff who had been identified as clinically extremely vulnerable and were shielding, but also staff who were shielding by proxy and/or who had caring responsibilities A more flexible approach to the working day which took account of home schooling and childcare/caring requirements was implemented

GENDER PAY GAP REPORT | 2021

3. Wellbeing We are aware of the detrimental impact which the pandemic has had on general wellbeing, and that women are more likely to report that they have mental health conditions. Supporting the wellbeing of our staff has been a strategic focus. We created a campaign for Mental Health Awareness Week which included internal and external communications and information. Mental Health Awareness sessions were also available to all employees. Together with the RMT Union we have teamed up with See Me Scotland to promote a campaign called “See Me. See Us” which is available on our intranet. By supporting the See Us movement, we can help build on the positive changes in society to make a difference in tackling mental health stigma and discrimination.

We also launched a new Employee Assistance Programme (EAP), designed to help improve health and wellbeing in both personal and professional life. We have teamed up with Health Assured to offer all colleagues this enhanced EAP, which includes access to the UKs leading wellbeing app, My Healthy Advantage. The app is a confidential resource designed to support the employees’ overall wellbeing - with features including mood trackers, helpful videos, 24/7 support services, 4-week programmes, reminders and active challenges and a wellbeing calendar of events and offers through the provider. Employees also will have access to a wellbeing portal, where they can get telephone support and they can download an app onto their personal or company devices. 3

GENDER PAY GAP REPORT | 2021

Looking to the future, we are engaging with the workforce to consider the recovery process and the potential return to a “new normal”. We recognise that we can learn from our current experience, and that the future workplace could include more options for flexible working/working remotely, which will support the career progression of staff with caring responsibilities. 4. Industry Context Occupational segregation (which can be defined as the concentration of men and women in different kinds of jobs) is a particular issue for the transport and sea faring industry. Sea faring has historically been a male-dominated industry and that tradition runs long and deep. Recently published statistics from the Department of Transport show that only 2% of the UK seafaring workforce, and 1.2% in the global workforce are female. There are a higher proportion of female staff in the seafaring industry who work in maritime catering/hotel services as opposed to technical areas. The pipeline of new entrants into the maritime industry is also dominated by males as shown by data from the Scottish Funding Council and the UK Higher Education Statistics Agency, where a significant majority (95%) of students are male. As a whole, less than a quarter of the UK’s transport and logistics workforce are female and there are particular challenges with career progression to senior or executive management grades. We are encouraged by the 50:50 male-female gender balance in our Executive Management Team and hope that this supports how we attract greater gender balance in our organisation and promote opportunities for career progression. In order to encourage females into the industry, and support our staff, we have developed two gender focussed work streams including: • holding focus groups with our female colleagues to better understand our colleagues’ experiences and any challenges of working in maritime and to understand how we can become more inclusive for all and • targeted marketing and communications during Scottish Modern Apprenticeship Week and International Women’s Day to promote CalMac as an inclusive employer and to inspire young females to see CalMac and maritime as a career choice for everyone. Our Inclusive CalMac group has established a subgroup to identify all potential barriers for females working at sea and working at sea with family commitments post maternity. We also work with Equate Scotland (Napier University) to deliver Unconscious Bias and Positive Recruitment training to the full team involved in the recruitment of Modern Apprentices into Science, Technology, Engineering and Maths roles.

GENDER PAY GAP REPORT | 2021

CASE STUDY – Encouraging Female Modern Apprentices In September 2021, we were pleased to announce that all 19 of our Modern Apprentice graduates were celebrating after transitioning into permanent roles at CalMac. The programme is designed to help young people who are passionate about the maritime sector gain essential qualifications and the experience necessary for a successful career within the sector, and most importantly with CalMac. CalMac is a recognised leader of seagoing apprenticeships and the Merchant Navy Training Board has named it as one of the top five UK companies for maritime apprentice schemes. We were pleased when one of our Modern Apprentices, Gemma Louise McLachlan, shared her experience on social media: “So I wanted to do engineering because it’s something different. There’s not enough women doing it just now. I thought it would be quite good to jump in and see how I got on with it. So far I’m loving it, I really supported by CalMac and City of Glasgow College as well. It’s a really good opportunity”

5. Group Overview Figure 1 details the headcount for the David MacBrayne Group employer subsidiaries at the snapshot date. Six members of staff who are the sole employees of David 5

GENDER PAY GAP REPORT | 2021

MacBrayne Limited have not been included. There has been no significant change in headcount since last reported. Figure 1: Group Subsidiaries, Employee Headcount and Gender Subsidiaries of the David MacBrayne Group Caledonian MacBrayne Crewing (Guernsey) Limited CalMac Ferries Ltd David MacBrayne HR (UK) Ltd

Headcount

Male

Female

1049

88.37%

11.63%

634 30

62.90% 16.67%

37.10% 83.33%

6. Pay Gaps Across Group Figure 2 shows the median pay gaps across the Group and compares them against external indicators. Scotland and the UK’s pay gap has slightly increased on an annual basis. There has been no change to the Transportation and Storage pay gap which is due to the fact that reporting was voluntary during the emergence of the pandemic. With the exception of David MacBrayne HR (UK) Limited, where the gap favours women, none of the gender pay gaps in the group’s subsidiaries exceed the external indicators. David MacBrayne HR (UK) Limited is a human resource subsidiary which supports CalMac Ferries Limited. When the payroll data of each of these two subsidiaries are combined, the mean (or average) pay gap is 6.7%, which is significantly lower than the external benchmarks. Since last reported, there has been a slight decrease in the pay gap in Crewing (Guernsey) Limited, which is the subsidiary with the highest gap and the lowest proportion of female staff.

GENDER PAY GAP REPORT | 2021

Figure 2: Summary of Median Pay Gaps within Group Subsidiaries compared with External Benchmarks External Benchmarks and Subsidiary Median Pay Gaps 0.0%

5.0%

10.0%

Scotland

15.0%

20.0%

25.0%

11.6%

16.1%

Transportation and Storage

14.5%

Crewing (Guernsey) Ltd

11.9%

CalMac Ferries Ltd

4.9%

David MacBrayne HR (UK) Ltd

20.9%

Gap Favours Men

Gap Favours Women

Gender pay information for each subsidiary is considered separately below. 7. Crewing (Guernsey) Limited This is the largest subsidiary company in terms headcount. Figure 3 shows that 11.63% of staff are female. There has been no significant change in gender proportionality since last reported. Figure 3: Gender – All Staff

Crewing (Guernsey) Limited 11.63%

88.37%

Male

Female

GENDER PAY GAP REPORT | 2021

Figure 4 shows the mean and median pay gap in hourly wages and shows that the median pay gap is lower than the mean. Figure 4: Crewing (Guernsey) Limited - Mean and Median Pay Gap

Crewing (Guernsey) Limited 0.00%

Median

Mean

5.00%

10.00%

15.00%

20.00%

25.00%

11.92%

20.29%

There has been no significant change in the mean and a slight decrease in the median. Guidance from the Equality and Human Rights Commission deems any pay gap in excess of 5% as significant and worthy of further investigation. Looking at the raw data, it is evident that pay arrangements are based on equal pay for work of equal value – each distinct role has a fixed salary and there are no deviations from this. All female staff who are performing the same role as their male collegues are receiving identical pay. It is suggested that the gap is attributable to societal issues of occupational segregation, and reflects the fact that the seafaring industry is often perceived as a “male” occupation. It is also noted that women are more likely to be responsible for child care, and this may act as a deterrent to choosing a career which may involve working away from home for relatively prolonged periods. The David MacBrayne Group will continue to engage in outreach activities to encourage women into the industry.

GENDER PAY GAP REPORT | 2021

Figure 5: Pay Quartiles

0.00%

Crewing (Guernsey) Limited Pay Quartiles 20.00%

Quartile 1

40.00%

60.00%

80.00%

100.00%

63.88%

36.12%

Quartile 2

96.60%

3.40%

Quartile 3

95.85%

4.15%

Quartile 4

97.33%

2.67%

Male

Female

The pay quartile analysis shows Quartile 1 contains the highest proportion of female staff. There have been no significant changes since last reported. Parity of pay on a role-based perspective is evident, which suggests that the dominance of male employees in the higher quartiles may be related to external societal issues including the prevalence of occupational stereotypes within the seafaring industry. Figure 6 below shows the median and mean bonus pay gap at Crewing (Guernsey) Limited. It is very similar to the overall pay gap as staff customarily receive the same annual bonus which is calculated as a percentage of salary. All staff who were employed at the date of bonus payments received bonuses. Figure 6: Median and Mean Bonus Pay Gap at Crewing (Guernsey) Limited

Crewing (Guernsey) Limited Bonus Gap 0.00%

5.00%

10.00%

15.00%

Mean

Median

20.00%

25.00%

23.40%

11.90%

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8. CalMac Ferries Limited This is the second largest subsidiary company in terms of headcount. Figure 7 shows that 37.10 % of staff are female, which is a slight decrease since last reported. Figure 7: CalMac Ferries Limited – All Staff

CalMac Ferries Limited 37.10%

62.90%

Male

Female

Figure 8: CalMac Ferries Limited Pay Gap

CalMac Ferries Limited Gender Pay Gap -10.00%

-5.00%

Mean

Median

Gap Favours Men

0.00%

5.00%

10.00%

15.00%

9.93%

-4.93%

Gap Favours Women

Figure 8 shows that the CalMac Ferries Limited mean pay gap is lower than the Scottish and UK gaps, which increased year on year. It is understood that the national increase in the gender pay gap is related to the payment of furlough at the 10

GENDER PAY GAP REPORT | 2021

statutory rate of 80%, whereas furlough payments for CalMac staff were paid at 100%. The mean gap has decreased by 0.57 percentage points (pp). While the annual change is incremental, there has been consistent progress in decreasing the gap since the emergence of the Gender Pay Gap Reporting Regulations. For the first time since reporting began, the median pay gap favours women. The median is the point which separates the higher and lower values, and usually this mid-point of pay is the same for male and female staff at CalMac. This year it falls for male staff on a pay point where there are no female staff, which has created a gap. The data cluster is very narrow, which makes meaningful analysis challenging. The pay quartiles information produced in Figure 9 shows the greatest level of gender balance in the Quartile 3 (the third highest paid quartile). There has been a slight increase in the proportion of female staff in the highest paid quartiles which may be associated with the slight decrease in the gender pay gap. Figure 9: CalMac Ferries Limited Pay Quartiles

CalMac Ferries Limited Pay Quartiles 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%100.00% Quartile 1

60.13%

Quartile 2 Quartile 3 Quartile 4

39.87%

68.55%

31.45%

47.47%

52.53% 75.47% Male

24.53% Female

Figure 10 shows the median and mean bonus pay gap for male and female staff. 90.6% of female staff and 87.7% of male staff received a bonus. The variation in the proportion of staff receiving bonuses is due to the difference in the snapshot date and the date on which bonuses are paid. The size and distribution of the bonus gaps are similar to pay gaps. The median bonus gap favours women and is higher than the pay gap. Again, it is a tight cluster of pay points, and the snapshot pay date is different to the date on which the bonus is paid, which is why there are differentials.

GENDER PAY GAP REPORT | 2021

Figure 10: CalMac Ferries Limited – Median and Mean Bonus Pay

CalMac Ferries Limited Bonus Gap -15.00%

-10.00%

-5.00%

0.00%

5.00%

Mean

Median

10.00%

15.00%

11.20%

-9%

Gap Favours Women

Gap Favours Men

9. David MacBrayne HR (UK) Limited The number of employees in this subsidiary company is significantly less than the statutory minimum. Nevertheless, in order to enhance transparency and to better understand the David MacBrayne Group as a whole, gender data is presented below. Given the relatively small numbers involved, it will only be meaningful to look at staff as a whole as opposed to reviewing composition of quartiles (the inclusion of which could lead to the identification of individual members of staff). Figure 11: David MacBrayne HR (UK) Limited – All Staff

David McBrayne HR (UK) Limited 16.67%

83.33%

Male

Female

GENDER PAY GAP REPORT | 2021

CalMac Ferries Limited Pay Quartiles 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00% 90.00%100.00% Quartile 1

60.13%

Quartile 2 Quartile 3 Quartile 4

39.87%

68.55%

31.45%

47.47%

52.53% 75.47% Male

24.53% Female

GENDER PAY GAP REPORT | 2021

Figure 10: CalMac Ferries Limited – Median and Mean Bonus Pay

CalMac Ferries Limited Bonus Gap -15.00%

-10.00%

-5.00%

0.00%

5.00%

Mean

Median

10.00%

15.00%

11.20%

-9%

Gap Favours Women

Gap Favours Men

David McBrayne HR (UK) Limited 16.67%

83.33%

Male

Female

GENDER PAY GAP REPORT | 2021

David McBrayne HR (UK) Limited has the smallest number of staff and has had the proportionately highest increase in headcount of approximately 10%. Such comparatively small numbers can be sensitive to changes in pay gaps. Figure 11 shows a lower proportion of male staff (16.67%). The Chartered Institute of Personnel and Development report that approximately 70% of people who work in Human Resources are female. The national predominance of females in this profession is thought to be related to the perception of HR being a profession more for women than for men. Figure 12 shows that the gender pay gap favours women. This is the converse of larger subsidiaries in the Group which have a higher proportion of male staff, and can be compared with an analysis conducted by the People Management in 2021 which reported that women in HR earn an average of 13.5% less than men in HR. Figure 12: David MacBrayne HR (UK) Limited Gender Pay Gap

David MacBrayne HR (UK) Pay Gap

Mean

23.16%

Median

19.50%

20.96%

20.00%

Gap Favours Men

20.50%

21.00%

21.50%

22.00%

22.50%

23.00%

23.50%

Gap Favours Women

10. David MacBrayne Group Equal Pay Statement We support the principle of equal opportunities in employment and believe that staff should receive equal pay for work of equal value regardless of their sex, race or disability. We understand that equal pay is a legal right under both domestic and European Law. We recognise that in order to achieve equal pay we must have a pay, grading and benefits structure that is transparent, flexible, based on objective criteria and free from bias. We understand that to deliver equal pay for our employees it is also necessary to consider all of the causes of the pay gap and that these go beyond discrimination 13

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within pay systems. We recognise that our training and employment practices can impact on people as a result of their sex, race or disability in different ways. In particular we are committed to tackling gender-segregation both horizontally and vertically in occupations across the David MacBrayne Group by removing incidents of stereotyping about skill and capabilities, by changing the culture associated with different jobs, removing barriers to accessing training courses and apprenticeships and promoting a healthy work-life balance. Our overall aim is to achieve equal pay in employment for men and women, people who are disabled and people who are not, and people who fall into a minority racial group and people who do not. In support of this aim and our commitment to equality, we will: • • • • •

Work in partnership with trade union representatives; Monitor the pay system to ensure it is open, transparent, fair and equitable; Communicate our policy on equal pay effectively to managers and all members of staff; Respond promptly to any complaints in relation to equal pay; and Regularly assess and monitor the impact of our pay practices, taking remedial action as appropriate.

We will continue to actively consult with Trade Unions on all employment matters including equalities, will report annually on our progress and review our Equal Pay Statement every four years. Our Executive Team is responsible for implementing, monitoring and reviewing the operation of this Equal Pay Statement and ensuring that due consideration is given to the resources required to achieve equal pay. I confirm that the information contained within this Report is accurate.

Christine Roberts, Group HR Director, David MacBrayne Group

GENDER PAY GAP REPORT | 2021

Appendix - Technical Note The data is based on Staff Headcount and includes full, part time and temporary staff. The calculations refer to the median and mean, and to pay quartiles. For the avoidance of doubt, these terms are explained below: The median is the middle number, that is, the data value at which 50% of data values are above it, and 50% of data values are below it. To find the median, data is listed in numerical order from smallest to largest in order to identify the middle entry. The mean is more commonly referred to as the average, that is, data values are totalled, and the sum is divided by the population. The pay quartiles have been developed by determining the hourly rate of pay for each male and female full-pay relevant employee and then ranking those employees in order from lowest paid to highest paid. The employees are then divided and ranked into four sections, each comprising (so far as possible) an equal number of employees, to determine the lower, lower middle, upper middle and upper quartile pay bands. Accordingly, Quartile 1 consists of the lowest salary ranges, and Quartile 4 consists of the highest.

GENDER PAY GAP REPORT | 2021