CalMac Gender Gap Report

GENDER PAY GAP REPORT

GENDER PAY GAP REPORT 1. The David MacBrayne Group is committed to providing equal pay for work of equal value and ensuring that its pay systems and process are free from bias.

2. The Group has a number of employer subsidiaries. Figure 1 below details the subsidiaries and the employee headcount. This includes all permanent full and part time staff employed at May 2017. Temporary staff are excluded as well as two members of staff who are the sole employees of David MacBrayne Ltd. Figure 1: Group Subsidiaries and Employee Headcount Subsidiaries of the David MacBrayne Group Caledonian MacBrayne Crewing (Guernsey) Ltd Calmac Ferries Ltd David MacBrayne Ltd HR Argyll Ferries Ltd

Headcount 955 434 24 27

3. While the Group is not a “listed authority” in terms of the Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012, in order to embed good practice and to support Scotland’s public sector in the advancement of equality and the elimination of discrimination, the Group intend to mirror the Specific Duties by reporting on the gender pay gap and by reviewing issues of occupational segregation.

4. Additionally, in terms of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations), private employers with more than 250 employees must publish prescribed information about gender pay gaps. The information in this Report responds to this statutory requirement. Within the Group, these Regulations apply to Calmac Ferries Ltd. While Caledonian MacBrayne Crewing (Guernsey) Ltd (hereafter referred to as “Crewing (Guernsey) Ltd” is outwith the jurisdiction of the Regulations, given the relative size, the Group has provided gender pay gap information which mirrors the Regulations.

5.

The gender gap 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.

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 1

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GENDER PAY GAP REPORT

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.

6. It is submitted that it is important to understand the Group’s pay data in the context of the maritime industry. Shipping has historically been a male-dominated industry and that tradition runs long and deep. The most recently published Seafarer Statistics published by the Department of Transport show that only 2.6% of UK Certificated Officers are female. There are a higher proportion of female Uncertificated Officers (30.5%) who work predominantly in maritime catering/hotel services as opposed to technical areas. Data from the Scottish Funding Council and the UK Higher Education Statistics Agency shows a significant majority (95%) of male students. It is evident that there is a general societal stereotype that jobs in the maritime industry are “for men”. The Group wish to work with partners to encourage female participation and develop actions to ensure that female staff in maritime roles do not suffer any disadvantage as the minority gender.

7. Figure 2 shows the median pay gaps across the Group compared with Scotland’s median pay gap. It can be seen that there are no pay gaps which favour men which exceed the national comparator. One subsidiary (Argyll Ferries Ltd) has no pay gap, and one subsidiary (David MacBrayne HR Ltd) has a gap which favours women. It should be noted that these subsidiaries are comparatively small compared with others. Each individual subsidiary is looked at discretely in this Report.

Figure 2: Summary of Median Pay Gaps within Group Subsidiaries compared with National Indicator

Group and National Median Gender Pay Gaps 0.00%

5.00%

10.00%

Scotland

Gap Favours Men

25.00%

30.00%

11.92%

Calmac Ferries Ltd

David MacBrayne HR Ltd

20.00%

18.10%

Crewing (Guernsey) Ltd

Argyll Ferries Ltd

15.00%

6.61% 0% 26.53%

Gap Favours Women

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8. Gender pay information for each subsidiary is considered separately below.

8.1 Crewing (Guernsey) Ltd This is the largest subsidiary company in terms of employees. Figure 3 shows that approximately 10% of staff are female.

Figure 3: Gender – All Staff

Crewing (Guernsey)Ltd - All Staff 10.05%

89.95%

Figure 4 shows the mean and median pay gap in hourly wages. It is noted that the median pay gap is lower than the national pay gap of 18.1%, and the mean is slightly higher. It is generally accepted that the median is a more accurate measure from a robust statistical perspective as it is not skewed by very low or high hourly rates of pay.

Figure 4: Crewing (Guernsey) Ltd - Mean and Median Pay Gap

Crewing (Guernsey) Ltd Gender Pay Gap Median

11.92%

Mean

0.00%

19.76%

5.00%

10.00%

15.00%

20.00%

25.00%

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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 regarded 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.

Figure 5: Pay Quartiles

Crewing (Guernsey) Ltd Gender Proportion in Pay Quartiles 100% 90% 80% 70% 60%

68.88% 94.92%

50%

97.49%

97.93%

40% 30% 20% 10% 0%

31.12% 2.51%

5.08% Quartile 1

Quartile 2

Quartile 3

2.07% Quartile 4

The pay quartile analysis shows that there is a higher proportion of female staff in Quartile 1. Referring again to the raw data, it is evident that there is a comparatively high proportion of female staff in that quartile who work in catering services. Parity of pay on a role based perspective is evident, which suggests that the dominance of male employees in the higher quartiles is related to societal issues of occupational segregation.

Figure 6 below shows the median and mean bonus pay gap at Crewing (Guernsey) Ltd. It is the same as the overall pay gap as staff customarily receive the same annual bonus which is calculated as a percentage of salary.

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Figure 6: Median and Mean Bonus Pay Gap at Crewing (Guernsey) Ltd

Crewing (Guernsey) Ltd Bonus Pay Gap

Median

11.92%

Mean

19.76%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

The Regulations oblige publication of the proportion of male and female employees who received bonus pay. Given that this is an across the board bonus, 100% of male and 100% of female staff received a bonus.

8.2 CalMac Ferries Ltd This is the second largest subsidiary company in terms of employees. Figure 7 shows that approximately 40% of staff are female.

Figure 7: CalMac Ferries Ltd – All Staff

CalMac Ferries Ltd - All Staff

60.6%

39.4%

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Figure 8: CalMac Ferries Ltd Pay Gap

CalMac Ferries Ltd Gender Pay Gap

Median

6.61%

Mean

0.00%

15.18%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

Figure 8 shows that the CalMac Ferries Ltd median pay gap is approximately 12% lower than the median national gap. At 6.61%, it is deemed significant with reference to the EHRC Guidance as it exceeds 5%.

The pay quartiles information produced in Figure 9 shows that there are a higher proportion of men than women in the highest paid quartile, and this has had a marked effect on the median male and female salary given the significantly higher values in this quartile.

Figure 9: CalMac Ferries Ltd Pay Quartiles

CalMac Ferries Ltd Pay Quartiles 100% 90% 80% 70%

53.70%

60%

49.09%

63.89%

74.55%

50% 40% 30% 20%

46.30%

10% 0%

Quartile 1

50.91% 36.11%

Quartile 2

25.45% Quartile 3

Quartile 4

Figure 10 shows the median and mean bonus pay gap for male and female staff.

99.54% of male staff received a bonus and 100% of female staff received a bonus. It can be noted that the median bonus pay is the same for male and female staff which 6

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reflects the fact that 19% of non-management staff are paid at the same salary increment, and non-management staff customarily receive an across the board bonus. The mean gap in bonuses may be attributed to the fact that there are proportionately fewer female staff in higher grades.

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

CalMac Ferries Ltd - Median and Mean Bonus Pay Gap

Median

0.00%

Mean

23.33%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

8.3 Argyll Ferries Ltd This subsidiary company has 27 employees. It is noted that the Gender Pay Gap Regulations apply only to organisations with more than 250 employees. Nevertheless, in order to ensure 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 also lead to the identification of individual members of staff). All Argyll Ferries Ltd staff received an across the board bonus.

Figure 11: Argyll Ferries Ltd – All Staff

Argyll Ferries Ltd - All Staff 7.42%

92.59%

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GENDER PAY GAP REPORT

Figure 12 below shows the mean and median gender pay gap. There is no mean gap, which can be compared with the national mean gap of 18.1%. This is an indication that the internal salary setting processes are suitable for the purposes of providing equal pay for work of equal value (in that salaries do not deviate in distinct roles). Again, it is suggested that the cause of the mean gap is external occupational segregation and perceptions of the sea faring industry.

Figure 12: Argyll Ferries Ltd Pay Gap

Argyll Ferries Ltd Pay Gap

Median

0%

Mean

0.00%

10.10%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

8.4 David MacBrayne HR Ltd The number of employees in this subsidiary company is also significantly less than the statutory minimum, and a similar approach will be taken to the presentation of gender pay data to balance transparency with the protection of individual data.

Figure 13: David MacBrayne HR Ltd – All Staff

David McBrayne HR Ltd - All Staff

20.83%

79.17%

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Figure 13 shows a lower proportion of male staff (approximately 21%). The annual XPert HR Survey in 2017 showed that approximately 75% of those who work nationally in HR 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 14 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.

Figure 14: David MacBrayne HR Ltd Gender Pay Gap

David MacBrayne HR Ltd Pay Gap

Mean

26.53%

Median

26.99%

26.30%

26.40%

26.50%

26.60%

26.70%

26.80%

26.90%

27.00%

27.10%

9. Taking Action to Address the Equal Pay Gap The Group is in the course of the development of Equality Outcomes to address occupational segregation and to encourage the attraction and progression of minority gender staff. These Outcomes will include: • • • • •

Monitoring staff equality data at recruitment Outreach initiatives to encourage women into the maritime industry Reviewing job titles to minimise gender bias Promoting flexible working policies Working with partners such as Skills Development Scotland to promote maritime careers for all

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.

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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 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

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