EQUAL PAY, PRIVATISATION AND PROCUREMENT BY MARGIE JAFFE, BRONWYN MCKENNA AND LIANE VENNER
Margie Jaffe is project manager for UNISON’s work on public service reform and the Positively Public campaign. She leads on privatisation issues and their impact on the workforce.
Bronwyn McKenna is UNISON’s Director of Organising and Membership. She is a solicitor specialising in trade union and employment law and has written and spoken widely on the areas of TUPE and equal pay in particular.
Liane Venner is UNISON’s Head of Membership Participation. She leads on equality issues for the union, and is working closely on the proposed new Equality Act.
ISBN 978 1 906703 01 1 August 2008 published by the Institute of Employment Rights The People’s Centre, 50 Mount Pleasant,Liverpool, L3 5SD e-mail office@ier.org.uk www.ier.org.uk printed by Upstream (TU) 020 7207 1560 Layout by Upstream 020 7207 1560 £6.50 for trade unions and students £20 others
equal pay, privatisation and procurement by margie jaffe, bronwyn mckenna and liane venner
contents
foreward
1
chapter one equal pay and the public sector: introduction and overview
3
chapter two linkage: privatisation and equal pay
5
chapter three background of public service reform
12
emergence of a two-tier workforce procurement
equal pay, privatisation and procurement
chapter four limitations and aspirations
ii
limitations of TUPE problems in the implementation of the codes limitations of european law aspirations – an alternative approach equality standards in local government the power of procurement growing role of the private sector
14 18
20 21 24 26 27 29 30 32
36
pay audits legal hurdles trade union equality representatives
37 38 40
chapter six opportunities for improvement and the political dividend
44
endnotes
47
IER publications
50
equal pay, privatisation and procurement
chapter five the failure of anti-discrimination and equality legislation
iii
foreword
Our members provide key public services, often working in the front line, and they all too often experience discrimination – as users of services as well as in their workplace. We welcomed the introduction of the public sector duties as an important step forward and the recognition of the key role of public services in both promoting equality and in tackling discrimination. For us, unequal pay based on gender and the erosion of protections for workers which can arise from public sector procurement are key issues. The gender pay gap remains unacceptably high and factors which cause unequal pay are many and complex. Evidence shows that no substantial progress is being made in closing the gender pay gap and that other Government-led policies are in fact contributing to it. These include many of the outsourcing and procurement processes of recent years.
equal pay, privatisation and procurement
Equal pay is a key issue for women in Britain and for UNISON, the United Kingdom's largest public service union with more than 1.3 million members. Our members work in the public services, for private contractors providing public services and in the essential utilities. They include frontline staff and managers, working full or part time in local authorities, the National Health Service, the police service, colleges and schools, the electricity, gas and water industries, transport and the voluntary sector. Over 70 per cent of our members are women; many are low paid or work part time. We organise more black workers than any other organisation and have actively contributed to key debates on tackling racism and promoting community cohesion.
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I am very pleased to recommend this Institute of Employment Rights booklet which explores this complex relationship in more detail.
equal pay, privatisation and procurement
Dave Prentis General Secretary UNISON
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WHAT IS THE INSTITUTE? The Institute of Employment Rights was launched on 28th February 1989 and was granted charitable status in 1994. As a labour law “think tank”, supported by the trade union movement, our purpose is to provide research, ideas and detailed argument on all aspects of employment law. As a charity, however, we are not a campaigning organisation. The Institute has attracted wide and distinguished support creating a unique network of lawyers, academics and trade unionists. Among the membership are John Hendy QC, Professor Keith Ewing, Professor Aileen McColgan, Professor Brian Bercusson and the general secretaries of Britain’s largest trade unions. The results of our work are published in papers and booklets. We also provide short articles, free of legal jargon, for trade union journals and other publications. Dissemination of our ideas is increasingly achieved through seminars and conferences as well as our educational courses. The Institute does not assume that legal measures can offer ultimate solutions for political, economic and social problems. However, we recognise that law has a part to play in influencing the employment relationship, both individually and collectively. Our funding is from various sources, including subscriptions, which entitle subscribers to a copy of all our new publications and reductions in conference fees. If you are interested in subscribing or would like to know more about the Institute, then contact us at The People’s Centre, 50 Mount Pleasant,Liverpool, L3 5SD or email us at office@ier.org.uk. Or visit our website at www. ier.org.uk
£6.50 TRADE UNIONS AND STUDENTS £20 OTHERS