Forty years ago the Equal Pay Act was passed, yet recent research by the Chartered Management Institute shows that at the present rate of progress it will be at least another fifty years before equal pay is achieved.
The 2010 National Management Salary Survey shows that female salaries increased by 2.8 per cent over the last 12 months, compared to 2.3 per cent for men. However, the average UK salary for a male manager is currently £10,071 more than that of a female manager, and data collected from 43,312 individuals in 197 organisations reveals that male pay outstrips female pay by as much as 24% at senior level.
Even at junior level the gap still persists with male junior executives receiving £1,065 more than female executives. Across the regions, women in the Midlands fare the worst, taking home £10,434 less while those in the North East fare the best, where the gap is smallest at £8,955. Pay gaps for executives are higher in IT or the pharmaceutical industry than in any other sectors, at £17,736 and £14,018 respectively.
As well as stark differences in pay, the research also reveals a contrast between male and female labour turnover rates, particularly with regard to redundancy. Over the last 12 months, 4.5 per cent of the female workforce experienced redundancy, compared to just three per cent of men, and at director level 7.7 per cent of female directors voluntarily left their posts in the last year, compared to just 3.6 per cent of men.
Responding to the report, CMI’s Head of Policy, Petra Wilton, said: “Girls born this year will face the probability of working for around 40 years in the shadow of unequal pay. The prospect of continued decades of pay inequality cannot be allowed to become reality. We want to see Government take greater steps to enforce pay equality by monitoring organisations more closely and naming and shaming those who fail to pay male and female staff fairly."
And commenting on the report CFWD's Director, Nan Sloane said, "The findings of this report present a depressing picture of just how far there still is to go for many women. We don't believe that it's acceptable to wait another 57 years for the Equal Pary Act to be fully implemented, and we're calling on both business and government to do more to ensure that women are paid fairly."
For more information see the CMI's website at http://www.managers.org.uk/