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Pay Equity Research Series – Executive Summary

The full text of the Pay Equity Research Series - Executive Summary is available for download in MS Word

• Introduction
• The Pay Equity Research Series
• Pay Equity in Children's Services in NSW
• Trade Credentials: Do They Help Pay Equity?
• 'We Are All Sisters Here...'
• Gender Equity Issues in Red Meat and Poultry Processing
  

Introduction

New South Wales has been at the forefront of addressing and promoting equal pay for men and women, both through the enactment of equal pay legislation in 1958 (Industrial Arbitration (Female rates) (Amendment Act) and through the State Equal Pay Case in 1973.

It had long been assumed that through these developments, the gap between men's and women's wages had been closed and pay equity achieved. Australian Bureau of Statistics (ABS) figures, however, suggest otherwise. The ABS collects information on average weekly earnings nationally and on a state-by-state basis and reports its results quarterly. In May 1999 the ABS published the following statistics, showing that female workers on average still earn well below their male counterparts:

• full-time ordinary earnings for adult males in NSW were $842.20 and $709.30 for adult females. Females earned only 84% of the male rate;
• full-time total earnings for males was $901.50 and $724.20 for females. Females earned only 80% of male total earnings;
• all male total earnings were $770.70. For all females the figure was $512.60, which means that females in NSW on average earned only 67% of all male total earnings. (ABS Average Weekly Earnings, May 1999)

Addressing this continuing gap is a priority for the NSW Government.

The statistical evidence highlights the importance of taking a broad approach to factors of remuneration when investigating the solutions to pay inequity and therefore not only directing attention to minimum rates. Most employees would recognise that their take home pay is made up of a variety of components. When taken together, these components more accurately reflect remuneration.

The equal pay principles tend to allow only for the value of similar work to be examined and measured. Generally, work value assessments were undertaken where men and women were employed in the same or similar type of work. Given the sex segregated nature of the labour force, the usefulness of such assessments is limited.

Confronted with the limitations to achieving pay equity in NSW, the Government developed a strategic and long term program to address these issues. Acknowledging that a number of factors contribute to gender pay disparities, the Government's strategy is to identify and understand the causes of pay inequity and then to focus on remedies incrementally and progressively.

Reflecting the complexity of the issue, the Government has not only carried out legislative change via the Industrial Relations Act 1996 (NSW), but has implemented a broad ranging cross-government strategy to address all facets of the gender pay gap.

A key component of this approach has been the commissioning of four research papers, which are summarised in this booklet. Two of the case studies were used in evidence before the NSW Pay Equity Inquiry and considered in detail by the NSW Industrial Relations Commission in its Pay Equity Inquiry Report.

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The NSW Government's Approach to Pay Equity

Legislative Framework

In 1996 the Government enacted the Industrial Relations Act 1996 (NSW). This Act embarked on a number of industrial relations reforms and importantly established a framework underpinned by fairness and equity in the workplace.

The Act acknowledges and attempts to redress the deficiencies of the previous definition of pay equity. Section 23 defines pay equity as 'equal remuneration for men and women doing work of equal or comparable value'.

It is intended that remuneration will extend the scope for investigating wage inequities, while the measurement of equal or comparable value will allow the Commission to undertake comparisons of the work across occupations and industries.

NSW Government's Pay Equity Strategy

The Government's Pay Equity Strategy was first established in 1996. Since that time, an annual Strategy has been produced each year, containing new initiatives and directions which build on previous activities. In order to achieve long term results, the Government has employed a balanced, measured, and strategic approach to achieving pay equity across the whole of the NSW Government. To complement the emphasis on equity in the Industrial Relations Act 1996 (NSW), five key result areas for Government action were identified to form a framework for the strategy.

The key result areas were:

1. Redressing the undervaluing of women's skills and occupational segregation, and providing access to other forms of remuneration;
2. Facilitating equitable change in the workplace;
3. Eliminating discrimination in industrial instruments;
4. Increasing access to career paths and to training; and
5. Promoting the NSW public sector as a model of excellence.

The strategic framework provides an important starting point from which industrial organisations, workers and employers can pursue a number of positive economic and social outcomes for the benefit of women in NSW and the state as a whole.

Some of the major achievements initiated under the Pay Equity Strategy include changes to the NSW Industrial Relations Act 1996 to include a broader definition of pay equity, the establishment of the Womens Equity Bureau in 1996, and the development of a work and family strategy. The NSW Pay Equity Inquiry is the Pay Equity Strategy's most notable initiative.

The 1999 Pay Equity Strategy is currently being reviewed in order to identify future priorities in light of the Pay Equity Inquiry Report.

NSW Pay Equity Taskforce

In 1996, the NSW Government established the NSW Pay Equity Taskforce to consider the undervaluation of women's skills and methods for addressing pay inequity in NSW. The establishment of the Taskforce was the first major initiative under the NSW Pay Equity Strategy. Its membership consisted of experts from a variety of employment areas including industrial relations, women's remuneration, training, the public sector, employer organisations and the trade union movement.

The Taskforce released an Issues Paper A Woman's Worth in September 1996, which invited submissions from all interested parties. It was distributed widely and was the central document for consultation during the Taskforce's investigation. The Paper considered the industrial, social, and economic implications of inequitable wage and employment conditions.

The Taskforce's work resulted in the production of its Report of the NSW Pay Equity Taskforce, released in March 1997, which made several recommendations for the achievement of pay equity in NSW and formed initiatives for action under the Government's Pay Equity Strategy. The Report examined factors that cause inequities in women's remuneration, women's employment patterns, and the impact of industrial regulation on pay equity. The most significant recommendation made by the Taskforce was that the NSW Industrial Relations Commission hold an Inquiry into pay equity by Ministerial reference. The Taskforce also recommended undertaking the case studies which make up the Pay Equity Research Series.

The NSW Pay Equity Taskforce's Issues Paper and Report are available from the Women's Equity Bureau.

NSW Pay Equity Inquiry

The Inquiry was carried out by the NSW Industrial Relations Commission after terms of reference were forwarded to it by the Minister for Industrial Relations in November 1997. The purpose of the Inquiry was to gather evidence and report on the undervaluation of women's work in NSW. The Inquiry was conducted between January and July 1998. It heard evidence from a wide range of sources and developed a range of responses to be considered by Government.

The Commission handed down the Pay Equity Inquiry Report on 14 December 1998. The Minister for Industrial Relations released the Report on 24 December 1998.

Its major conclusions were that the most appropriate way for dealing with inequity is through the existing industrial relations system, that minor amendments to the Industrial Relations Act 1996 (NSW) be made to enable this, and that a new equal remuneration principle be developed. The Report also made findings about certain industries. The Report of the Inquiry and a summary of its findings is available online.

Equal Remuneration Principle

One of the recommendations of the Pay Equity Inquiry was that a new equal remuneration principle be developed to replace the existing equal remuneration principles and that the new principle be applied to the full range of the Commission's functions. The Inquiry put that such a principle could include the following elements:

• all instruments made by the Commission would provide for equal remuneration, including awards, enterprise agreements, and the resolution of industrial disputes;
• the exercise of the Commission's award review powers under Section 19 of the Industrial Relations Act 1996 (NSW) would include the principle as an essential feature;
• the statutory requirement to ensure equal remuneration and other conditions of employment of men and women doing work of equal or comparable value. This would require consideration of the definition of remuneration, the conduct of work value assessments and the factors to be taken into account, the results of past award restructuring and minimum rates adjustments processes, the history of an award, and remedies to address undervaluation and the need for change.

Hearings before the NSW Industrial Relations Commission to deal with the case for a new equal remuneration principle have been scheduled for February 2000.

The Inquiry also recommended that the International Labour Organisation's definition of remuneration be adopted. The definition is:

The ordinary basic or minimum wage or salary and any additional emoluments whatever payable directly or indirectly, whether in cash or in kind, by the employer to the worker and arising out of the worker's employment. (Article 1, ILO 100).

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The Pay Equity Research Series

As part of the NSW Government's Pay Equity Strategy the Women's Equity Bureau of the NSW Department for Industrial Relations commissioned and coordinated the four research projects, the aims of which were to assist in the identification and understanding of factors affecting gender pay equity. Each project resulted in the production of a case study research report, each of which sheds light on the issue from a different perspective.

The four case studies are:

Pay Equity in Children's Services in NSW, by Rosemary Kelly of Specialist Research Services, which deals with pay equity issues for Child Care Workers;

Trade Credentials: Do They Help Pay Equity? by Meg Smith and Peter Ewer of Labour Market Alternatives Pty Ltd, a study which compares the earnings and conditions of hairdressers with motor mechanics;

"We are all sisters here..." A case study of Pay Equity and NESB women in New South Wales, by Kathryn Heiler of ACCIRT, which focuses on the interrelationship between gender and ethnicity and the combined effect of this on pay equity for women working in the confectionery industry; and,

Gender Pay Equity Issues in Red Meat and Poultry Processing, by Meg Smith and Peter Ewer of Labour Market Alternatives Pty Ltd, a comparison between the red and white meat industries.

The result of this research is four monographs - The Pay Equity Research Series. Together they consider the barriers to pay equity for women and measures which may assist in rectifying this imbalance. At the same time, they look at the different factors affecting equity in each case, focusing on the particular concerns of each of the industries with which they deal.

The case studies on the child care and hairdressing occupations were presented in evidence at the NSW Pay Equity Inquiry, which reported undervaluation of women's work in these fields. The Pay Equity Inquiry Report made a number of specific recommendations which were designed to assist with the achievement of pay equity in these industries.

Summaries of each of the case studies follow providing overviews of the major findings of each of these important pieces of research in the quest to achieve pay equity for working women.

Where To From Here?

The Women's Equity Bureau is continuing work in relation to the jurisdiction. In line with the Commission's Report that a new Equal Remuneration Principle be established, the NSW Government is supporting an application made to the NSW Industrial Relations Commission by the Labor Council of NSW to this effect. The matter will be heard in February 2000.

These case studies not only identify inequities but aim to develop practical guidance and assistance for all parties when considering these matters. Once the Industrial Relations Commission has handed down its decision in relation to an Equal Remuneration Principle, WEB will undertake to promote the jurisdiction and assist compliance.

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Pay Equity in Children's Services in NSW

Background

In November 1996, the Women's Equity Bureau of the NSW Department of Industrial Relations commissioned Rosemary Kelly of Specialist Research Services to undertake research into the children's services industry in NSW. The findings of this research are presented in Pay Equity in Children's Services in NSW. The case study identified and analysed factors critical to the achievement of pay equity for women working in the children's services industry in NSW and the barriers to pay equity which have historically applied to these workers. The research was conducted by analysing the history of wage fixation in the industry, along with the relevant industrial awards and legislation, and the key findings of research undertaken prior to this study. Surveys and interviews with stakeholders were also used to provide insight into the current state of play in the children's services industry.

The findings were used in evidence at the NSW Industrial Relations Commission's Pay Equity Inquiry.

Industry Profile

1. Eighteen thousand people work in the children's services industry in NSW and approximately half work in long day care centres, the focus of the study. The case study estimates that more than 95 per cent of all people employed in this industry are women and approximately half of all workers in the industry hold qualifications. It is estimated that 75 per cent of primary care workers are full-time.
2. A range of formal child care services are available in NSW, including long day care centres, which include community based non-profit organisations, private-for-profit services, and employer-sponsored services: other services include pre-schools or kindergartens; occasional care centres; before and after school care; and family day care. All three levels of government are involved in planning, funding, regulating and/or subsidising access to children's services.
3. About one third of workers in the industry are family day care providers, who care for children in their own homes. Although this sector of the industry is heavily regulated and monitored, these workers are deemed to be independent contractors with no award coverage. The case study found that their pay and conditions are often lower than other child care workers, because they are paid according to the number of children they care for.
4. A large proportion of child care is still provided informally. It is unpaid, and does not fall within what is known as the children's services industry. There is also a significant incidence of unpaid work occurring within the formal structure. A study conducted by ACIRRT in 1996 found that approximately nine per cent of workers in this industry are unpaid i.e. volunteers, work experience students, or relatives of proprietors (ACIRRT 1996). It is estimated that only 72 per cent of demand for long day care is being met (Department of Health and Family Services 1996).

Scope of the Study

Due to the complexity of the industry and time constraints, this study focused on primary care staff working in the non-Government long day care sector of the children's services industry in NSW. Over 90 per cent of primary care staff are adults and they include untrained Child Care Workers, Child Care Workers holding the Associate Diploma from TAFE, and University qualified Early Childhood Teachers holding Degrees and/or Diplomas. Child Care Workers in this part of the industry, both trained and untrained, are covered by the Miscellaneous Workers - Kindergartens and Child Care Centres Etc. (NSW) State Award, a minimum rates award. Early Childhood Teachers are covered by the Teachers (Non-Government Early Childhood Service Centres Other Than Pre-schools) (State) Award, a paid rates award.

The case study identified the level of training undertaken by staff as being the most important factor in determining the quality of child care. Proprietors of long day care centres and pre-schools/kindergartens overwhelmingly considered that Child Care Workers were underpaid and that their skills and responsibilities were not adequately recognised in their rates of pay. Retention of trained staff in the industry is low. In a survey of proprietors, 61.1 per cent of respondents said they had experienced difficulties in recruiting trained staff.

Findings

Although the benefits of providing quality child care services include improved economic and social outcomes for the whole community, the outcomes of the study demonstrated an undervaluation of the work and a failure to recognise the training, qualifications and competencies of child care workers.

The following issues were identified as contributing to this undervaluation.

Industrial Relations

• Industrial relations processes have adversely affected pay equity in this industry.
• The award restructuring exercise of the early 1990's did not place due recognition on the skills and experiences of these workers.
• There are few enterprise agreements covering workers in child care and where they do exist, they largely deal with working conditions and not rates of pay.
• Lower rates paid to family day care providers (independent contractors) adversely impact on the rates of pay of other workers in the industry.
• The industrial relations system links productivity to wage increases. Government regulation in the form of staff to child ratios and limitations on numbers and types of places that providers can offer, whilst maintaining standards, reduces opportunities to identify areas of increased productivity and therefore wage increases.

Skills and Training

• Under the minimum rates adjustment process, rates of pay for Child Care Workers were aligned with certificate (trade) level work rather than other types of work where an Associate Diploma is required.
• Rates of pay for Early Childhood Teachers were linked to those with equivalent qualifications employed in schools until the abandonment of centralised wage fixation in the early 1990's. Since that time, Early Childhood Teachers in the children's services industry have fallen further behind their school-based counterparts.
• The work has not been appropriately valued according to skills and qualifications and this undervaluation is due to the social construction of the work, compared to the equivalent trade qualifications in traditionally male dominated areas of employment.

Operational Costs

• Low remuneration keeps fees down and consequently enables proprietors to compete in an industry where labour costs account for 80 per cent of operational costs.

Recommendations

The study argues that pay equity principles need to have broader application than to awards alone. A number of recommendations were made based on the findings of the case study with a view to achieving pay equity for child care workers. These include:

• the use of Section 19 of the Industrial Relations Act 1996 (NSW) to review the relevant NSW awards and that a reopening of matters not properly dealt with under award restructuring may be warranted;
• that qualifications be used as a measure of work value; and
• that detailed research into the operation of family day care is warranted and that family day care providers be included as 'deemed employees' under the Industrial Relations Act 1996 (NSW), rendering them eligible for award coverage.

Pay Equity Inquiry

Based on this case study, the NSW Pay Equity Inquiry reported that the children's services industry is one of the female dominated industries that typifies the poorly paid nature of work which is performed predominantly by women.

In relation to the importance of competency standards in achieving pay equity, the Inquiry found that their use is limited in fixing remuneration. They do not provide a means of assessing attributes other than relative competencies, such as skills and knowledge and that they are not necessarily related to educational outcomes. While competency standards were valued as an important guide, they were not considered to be a determinative factor. Despite this, the Inquiry found that there has been undervaluation of qualified child care workers over time.

The Inquiry also found that the minimum rates adjustment principle made it possible to compare dissimilar work classifications for work value assessments and to address pay equity issues. However, this would not be done adequately unless there was a principle in place to rectify the undervaluation of the work. It was found that the making of consent awards between the parties in female dominated industries was a factor which hindered the operation of the minimum rates adjustment principle.

The Inquiry recommendations include the use of Section 19 of the Industrial Relations Act 1996 (NSW), which provides for reviews of awards every three years, as part of the new equal remuneration principle. This would include the principle as an essential consideration.

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Trade Credentials: Do They Help Pay Equity?

In November 1996, the Women's Equity Bureau of the NSW Department of Industrial Relations commissioned Meg Smith and Peter Ewer of Labour Market Alternatives to undertake a research project comparing the female dominated hairdressing trade with the male dominated trade of motor mechanics in NSW. The findings of this research are presented in Trade Credentials: Do They Help Pay Equity? and was submitted as evidence before the NSW Industrial Relations Commission's Pay Equity Inquiry.

Scope of the Study

This case study measures the effects on pay equity of the formal recognition of skills exercised by working women. The study utilised 'institutional analysis', a research methodology which gives prominence to those institutions which recognise and remunerate skill. Data was obtained from the vocational education system, trade unions, industry associations, industrial tribunals and government organisations. The case study also identifies other issues such as the effects of price discounting on wage rates, the labour dynamics of the industries, and the treatment of beauticians under the hairdressers' award, which require further research.

The choice of hairdressers and motor mechanics as female and male comparators respectively was prompted by several factors: both occupations are underpinned by a trade credential: both are in the service sector; both are characterised by high rates of employee turnover; both are licensed by a regulatory authority; and motor mechanics rank amongst the lowest paid of those employed in male dominated trades.

Hairdressers in NSW are covered by the Hairdressers &c. (State) Award. Most motor mechanics are covered by the Federal Vehicle Industry Repair, Service and Retail Award 1983.

The Trades

The hairdressing and motor mechanical trades workforces are relatively young, with low proportions of workers over 40 years of age. Employment is dispersed across a large number of small enterprises, the majority of which employ less than five people. Both groups have a high degree of mobility out of their respective sectors. Both occupations are highly gendered, with 76 per cent of hairdressers being women and 99 per cent of motor mechanics being men.

To qualify as a tradesperson in both these fields, an apprenticeship must be completed. In both cases, this requires satisfactory completion of a TAFE course plus on the job training, and the licensing of tradespeople is practised. In the motor vehicle repair trade, the licensing of workplaces is also required. In relation to hairdressing sections of the Local Government Act 1919 (NSW), which set certain standards for hairdressing premises and required those premises to be licensed, have been repealed and this has contributed to the rapid growth in mobile and home based hairdressers.

Findings

The case study tests the extent to which the formal recognition of skill exercised in a female dominated occupation contributes to gender pay equity. The following pay equity issues were identified as a result of this investigation:

Regulation

• Since 1987, the inclusion in the hairdressers' award of wage movements available through successive state wage case decisions has been consistently delayed.
• While motor mechanics have found their labour market indirectly tightened by consumer protection legislation, regulatory arrangements in hairdressing have been wound back.

Skills and Training

• Traditional assumptions that value technical skills over creativity and which under represent technical skills in hairdressing have affected remuneration levels in these occupations.
• Motor mechanics have better access to career paths, which is reflected in post trade classifications and rates of pay in formal and informal workplace agreements. The hairdressing award fails to recognise post trade training, skills and experience in its classification structure.
• The hairdressing award contains an anomaly whereby beauticians are paid only 92 per cent of the trade rate, even though this rate is lower than that which salon assistants/receptionists receive under the same award.

Remuneration

The difference in average weekly earnings at the time of the research was as follows:

• Male motor mechanics earn $119.80 more per week than female hairdressers on ordinary time measures for very similar hours. The gap widens to $170.60 per week on total earnings for an average of 2.2 hours more work.
• Higher ordinary time earnings for motor mechanics occur through higher over award payments, penalty rates, shift allowances, and other allowances, such as tool allowance. The difference in total earnings is due to overtime payments received by motor mechanics.
• Penalty rates in hairdressing have been progressively reduced over the past 20 years as a result of deregulation of retail trading hours.
• Over award payments for motor mechanics are significantly more accessible, and are paid for a combination of additional skill, experience and training.
• Hairdressers rely on commissions based on market share (the number of clients they attract), for over award payments.
• A series of inspections conducted by the Arbitration Inspectorate on the south coast of NSW, and supported by the Australian Workers' Union and the Professional Hairdressers' Association, identified significant breaches of the award in hairdressing.

Recommendations

A number of recommendations were made, based on the findings of the case study, in order to achieve pay equity for women working under the hairdressers' award. These include:

• the development of a post trade classification structure tied to reforms of the present licensing system, including recognition of all aspects of beauty treatment and new license classes for hairdressers which recognise post trade qualifications.
• the establishment of an apprenticeship development working party to investigate further development of apprenticeships in the beauty trades and consider the reform of the beautician classification into a number of trades;
• that the Women's Equity Bureau monitor key awards for women and advise respondents of their currency and rates relative to wage case decisions. This information could be used in the three yearly review of awards under Section 19 of the Industrial Relations Act 1996 (NSW); and,
• that DIR consider recommending to the Minister that he refer or initiate proceedings on this matter to the NSW Industrial Relations Commission under Section l46 and Section 167 of the Industrial Relations Act 1996 (NSW).

Pay Equity Inquiry

The case study was submitted by the Crown in evidence at the NSW Pay Equity Inquiry consistent with the case studies recommendations.

Consistent with the case study, Glynn J., hearing the Inquiry, reported that the hairdressers' award contained a number of shortcomings. Post trade qualifications and training are not recognised in the award and should be. The failure to reward additional skills demonstrates undervaluation of work. Additionally, the Inquiry found that the 1973 Equal Pay Principles have not been fully applied to the award. Her Honour also found that the setting of rates of pay in hairdressing is affected by factors that contribute to undervaluation in female dominated industries, including small workplaces, low union membership, and low levels of industrial activity.

The Inquiry also found that the work of beauty therapists is and has been "greatly undervalued in that it has not been awarded parity with other trades and that ... this position is clearly unacceptable ..." (Pay Equity Inquiry Report, Volume 1, Page 340).

Latest Developments

The NSW Department of Industrial Relations will undertake a review of NSW awards which have not been granted State Wage Case increases. This will take place in preparation for the Crown's submission to the State Wage Case 2000.

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'We Are All Sisters Here...'

Background

In 1998, the Women's Equity Bureau of the NSW Department of Industrial Relations commissioned Kathryn Heiler from the Australian Centre for Industrial Relations Research and Training to undertake research into pay equity for Non-English Speaking Background (NESB) women in NSW. The Darrell Lea Chocolate Shops Australia Pty Ltd confectionery manufacturing plant at Kogarah in NSW was chosen as the research focus on this issue. The findings are presented as a case study, 'We are all sisters here...'. The case study examines the interrelationship between gender and ethnicity and the effect of this dynamic on pay equity.

Both aggregate labour market statistics and workplace level wages data have been used in the report. A range of qualitative and quantitative data was collected from Darrell Lea management and employees and questions were developed to guide the direction of a series of interviews and discussions. Reference was made to other published research undertaken in the confectionery industry to place the research in context. The approach of studying a single enterprise provides the opportunity to explore the confectionery manufacturing sector in microcosm and deals with pay equity issues both from the perspective of a single enterprise and a whole industry.

Company Profile

Darrell Lea is a family owned, unionised, medium size confectionery business established in 1928. The company's manufacturing plant is located at Kogarah in Sydney's St George district. It competes against large, multinational companies, both locally and overseas, and operates in an increasingly competitive market in which few Australian firms have survived.

Over award wages are paid to all award employees and 90 per cent of the workforce are covered by NSW State awards. Between 200 and 300 people are employed at the site at any one time. Approximately one third of the employees are NESB women. NESB women were found to be attracted to the work at Darrell Lea, while management actively recruited and selected them for particular positions. The work has a seasonal element due to approximately 22 per cent of the company's produce being sold at the peak times of Easter, Valentine's Day and Mothers' Day. Darrell Lea is the largest private sector employer in the St George district.

Scope of the Study

This case study explores the experiences of NESB women in the labour market generally, and one workplace specifically. The research project examines the extent and limits of the interplay between gender and language background in the labour market.

The main group of employees focused upon in this case study are covered by the Confectioners (State) Award.

Findings

The presence of three elements were found to contribute to the wages outcomes for the women studied:

• the over representation of NESB women in the company results from a labour market 'fit' between the pre-existing position of these women in the labour market and the need of the company for a stable supply of low cost, reliable labour;
• the organisation of work in the company, as in confectionery generally, both reflects and reinforces the labour market position of NESB women and their wages outcomes; and
• there is a direct link between job/occupational segmentation with wages outcomes and this is exacerbated by the historical context within which discretionary over award payments are made within the firm.

The following points were also found in addition to these three broad findings.

• Males in all sections, including confectionery, received higher over award wages than females.
• In terms of aggregate earnings outcomes, an 'earnings hierarchy' existed within manufacturing which had NESB women consistently positioned at the lowest end. Of particular interest was the result of analysis which found little variability in the earnings ratio between NESB women and Australian born women workers. The ratio of male to female earnings revealed greater distinctions.
• The variability in wages between the women was on average 2.1 per cent while the variability between men and women is 13.3 per cent.
• The earnings gap between the women does not exceed three per cent while the earnings gap between the men and women is as high as 12.8 per cent for ordinary time earnings and 19.8 per cent for total earnings.
• Women's skills were generally undervalued.
• The organisation considers market pressures make costs associated with solutions to the problem of gender segmentation, such as workplace restructuring and multi-skilling, prohibitive.
• This case study reflects the findings of previous research studies demonstrating gender, rather than language background or ethnicity, to be the strongest determinant of wages outcomes at an enterprise level.

Recommendations

A number of recommendations were made based on the findings, which were aimed at improving pay equity for the women at Darrell Lea. However, the recommendations are applicable to all employers in the confectionery industry.

• That the recruitment and promotion process should be based on merit, rather than gender and ethnicity and this style of recruitment should occur at all levels, rather than only at the lowest point of entry. This would help to break down the closed internal labour market.
• Job redesign which would lift restrictions to women doing certain jobs.
• That the company undertake a skills audit and job evaluation to correct anomalies in job classifications.
• That multi-skilling and upskilling take place.
• The purchase of new technology.
• The adoption and implementation of competency based training and competency based pay. Smaller companies need to be roped in and the award restructured to reflect new competencies.
• That the award should be reviewed to test its relevance in the current climate.

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Gender Equity Issues in Red Meat and Poultry Processing

Background

In 1998, the Women's Equity Bureau of the Department of Industrial Relations commissioned Meg Smith and Peter Ewer of Labour Market Alternatives Pty Ltd to study the degree of pay equity in the red meat and poultry processing industries in NSW. The findings of this research are presented in Gender Pay Equity Issues in Red Meat and Poultry Processing. The purpose of the research was to provide a research base on which to build a pay equity analysis within and between the red meat and poultry processing industries.

The study investigated the level of remuneration within both industries, examined the work within and between the industry through inspections at two workplaces, and assessed the factors that impact on the setting of remuneration in both sectors.

Industry Profiles

Each of the industries is engaged in the slaughtering, preparation, boning, packing, chilling, freezing, distribution and processing of red meat and poultry products and by-products. Red meat processing is male dominated, with men occupying 83 per cent of all jobs and women being poorly represented in the occupations of slaughtering, boning and slicing, the classifications under which bonus payments are available through the tally system. Poultry processing has a more even distribution with women representing 53 per cent of the workforce. Labour costs account for 50-55 per cent of red meat processing costs and 49 per cent of processing costs in the poultry industry. Red meat processing has a far stronger export orientation, with poultry processing focused mainly on the domestic market.

Whereas red meat processing has traditionally been concentrated in purpose-built, publicly regulated abattoirs, poultry processing has evolved from 'backyard' producers and larger family operations, whose main activity was egg production, into a large scale vertically integrated industry.

Award coverage also distinguishes the two industries. Poultry processing workers are primarily covered by a NSW State Award. There are a number of state and federal awards that cover red meat processing workers, with the majority of large export oriented abattoirs falling within the coverage of the state jurisdiction.

Findings

The case study indicated that there are significant earning differences between the red meat and white meat processing industries.

Comparison Between the Two Sectors

It was found that slaughtering functions between the two industries are not comparable. Slaughtering in poultry processing has become increasingly mechanised while in red meat, the process remains highly labour intensive. Boning and packing work in the two industries is functionally comparable with differences due to the weight of the product, complexity and frequency of work tasks, and the size of manual equipment.

• Rates of pay received by workers in red meat processing are higher than those for poultry processing, whereas minimum award rates of pay for both industries are far more closely aligned.
• red meat boners earn $303 more than their poultry counterparts.
• packers in red meat processing earn $50 more than packers of poultry.
• The earnings disparity between boning and packing workers in these industries are more attributable to cultural differences and associated training structures than work value. The red meat sector is more highly industrialised, has been more closely regulated for a longer time and protected by occupational entry points bearing the imprint of a masculine workplace culture.
• The occupational entry point to boning and packing work in red meat involves a short quasi apprenticeship, which defines entry to these positions.
• The quantum of enterprise agreement increases in the poultry sector do not equal the remuneration available under the award (including tally based payments) and enterprise agreements.

Within Red Meat

• Disputes between the parties in relation to the tally system in the red meat industry have slowed enterprise bargaining. However, where enterprise agreements have been negotiated to either remove or partially replace the tally, wages have remained commensurate with those available under the award.
• Within the red meat sector, women are located in the lower paid positions of labouring/packing with no access to the most beneficial components of the tally system.
• Occupational health and safety issues in the red meat industry are often used as inappropriate barriers to women entering selected occupations in the sector - those offering higher rates of pay and access to the tally system.

Within White Meat

• Over award bargaining does occur in the poultry processing sector, particularly within the large processing companies. These over award payments have been largely formalised by way of enterprise agreements.
• The findings show no clear evidence of gender pay inequity within the poultry processing sector.

Recommendations

The case study arrived at a number of recommendations which include:

• •that the industrial parties and the NSW Industrial Relations Commission conduct a work value assessment of boning and packing work in the red meat and poultry processing industries including all aspects of remuneration. This assessment would need to take account of factors such as differences in the weight of product and the frequency and intricacy of the work function.
• that the debate on the tally system in red meat processing needs to include consideration of its gender related effects on pay equity;
• that the industrial parties in red meat processing should review the recruitment procedures for the slaughtering, boning and slicing occupations to ensure that they do not generate a further indirect barrier to the employment of women in these areas.

Latest Developments

A Full Bench decision of the Australian Industrial Relations Commission on 24 September 1999 found that the tally system used in the red meat industry was inappropriate and out dated. The decision was made in accordance with the Workplace Relations Act 1996 (Cth) which requires federal awards to be stripped back to 20 allowable matters.

It is the position of the Australian Council of Trade Unions and the Australasian Meat Industry Employees' Union that the decision will have limited impact on the status quo as most employees whose wages are supplemented by the tally are covered by enterprise agreements which include provisions for the operation of the tally system.