The law, which will apply across Great Britain, would ensure equal pay claims on the basis of ethnicity and disability are handled the same as those made by women, who currently have more stringent protections on pay than other groups. The 2010 Equality Act mandates that women and men are entitled to equal pay for equal work.

On Monday, Jacqueline Mckenzie, a lawyer who contributed to the taskforce set up by Labour to develop the new Race Equality Act, told BBC Radio 4’s Today programme that the party’s plans were “a bold step”.

“What we’re not sure about, because we haven’t seen the act, is whether or not it will actually include enforcement penalties and mandatory reporting,” she said. “Because if it doesn’t do that it’s not actually going to make any difference.”

Under Labour’s plans for the Act, the law would be gradually introduced to give employers time to adjust to remunerating all their staff appropriately. Back pay will only be offered to workers from when the law officially comes into play. 

The proposals will take up the “dual discrimination” that some workers face, allowing them to bring a single claim if they believe they have experienced a combination of discriminations — for example, both sexism and racism, or ableism. 

Labour also announced it plans to appoint a Windrush commissioner if it wins the general election to surveil the compensation scheme, and that business groups and unions will be consulted before the law is enshrined. 

Shadow women and equalities secretary, Anneliese Dodds released a statement, saying “It has never been more important to deliver race equality.”

“Inequality has soared under the Tories and too many black, Asian and ethnic minority families are working harder and harder for less and less,” she wrote.

“This is holding back their families and holding back the economy. We are proud of our achievements in government, from the landmark Equality Act [in 2010] to strengthening protections against discrimination. The next Labour government will go further to ensure no matter where you live in the UK, and whatever your background, you can thrive.”

However, Dr Begum believes the proposals are not flawless.

“[The Act] fall short of addressing the formidable scale of inequalities that shape the experiences and opportunities of people of colour,” she said. 

“Committing to address structural racial inequality needs to understand that racism doesn’t simply arise when the system fails – but that racism is actually sewn into the very fabric of the system itself.”

“Labour must use the race equality act as a platform to commit to an ambitious, cross-governmental approach supported with sustained investment addressing the unacceptable – and in some cases worsening – disparities in health, housing, wealth and policing, faced by so many communities of colour.”

Minister for Equalities Kemi Badenoch is even more sceptical, calling the proposals “a bonanza for dodgy, activist lawyers”.

“[The Act would] set people against each other and see millions wasted on pointless red tape,” she wrote on X. “It is obviously already illegal to pay someone less because of their race.” 

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To a crowd of party-faithful at his official campaign launch, Albanese also confirmed Labor would establish the statutory equal remuneration principle to guide the Fair Work Commission and create new expert panels to hear equal pay cases.

The Queensland government enacted its own equal remuneration principle several years back — interestingly, the statement of policy stipulates gender discrimination is not required to be shown to establish undervaluation of work.

The concept was first established nearly 70 years ago in the Equal Remuneration Convention 1952 (No. 100) of the International Labour Organization ILO — and there are two core tenets.

First, that men and women receive equal pay and benefits for work that is the same, requires the same skills, effort and responsibility, and is performed under similar working conditions — two entry-level accountants, for example.

Crucially however, even if two jobs are entirely different, based on objective criteria free from gender bias they are of equal value — that means men and women receive the same pay for jobs that involve different qualifications, skills, responsibilities or working conditions, but which are nevertheless of equal value.

In principal, Hall & Wilcox partner Fay Calderone says, implementing this “is critical and never been more necessary”, particularly for the care industry.

“It is intolerable that they are underpaid and of course low wages perpetuate the issue with staff shortages meaning they are also overworked.”

Looking at Queensland’s example, Calderone says we could expect the commission must be satisfied an agreement or bargaining instrument proposed by an employer has implemented equal remuneration for work of equal or comparable value for all employees.

“The principle is an important step in the right direction, as it will allow the Fair Work Commission and new expert panels to give greater consideration to equal pay cases,” she tells SmartCompany.

So what would change? Without more detail, it’s hard to say — Calderone says either a worker, a union representative or the sex discrimination commissioner can already apply for an equal remuneration order, which requires certain employees get equal pay for equal (or comparable) work.

It actually overrrides a modern award, an enterprise agreement, a Fair Work Commission order or any other industrial instrument as long as the worker comes off better, Calderone continues.

Albanese continued that under a Labor government, a new Care and Community Sector Expert Panel and a Pay Equity Expert Panel would be established to strengthen expertise within the commission on gender pay equity and care sector work.

The panels will be backed by a dedicated research unit — and that’s a very good thing, Diversity Council Australia (DCA) CEO Lisa Annese tells SmartCompany.

Annese continues that DCA research shows industrial and occupational segregation are major reasons why the gender pay gap persists to this day.

“We do need targeted action to address these aspects of the gender pay gap,” she says.

And closing the gender pay gap is more than an ethical imperative — it makes good business and economic sense too, Annese says.

“Closing the gap will have significant benefits to Australia’s economy and society, as well as benefits for employers in terms of productivity, employee engagement and morale, access to talent, and retention.”

But don’t expect the policy to have broad implications for the Australian business community, Georgina Alexandrou, special counsel at Brisbane’s Corrs Chambers Westgarth tells SmartCompany.

“It is unlikely to mean wholesale changes across all sectors and industries,” she continues. “But a focus on low paid sectors like aged care, early childhood education and care, and disability care, where workers are predominantly women.”

In announcing the policy, Albanese called care work “undervalued, underpaid, and increasingly less secure”.

“This is making it hard to attract the thousands of new care workers we need, and to keep those already working in the sector in their jobs.”

Manager of Opposition Business Tony Burke says the gender parity announcement comes “on top of our reforms to tackle insecure work, which will help Australians get good, secure jobs”, while Education spokesperson Tanya Plibersek says the fight for gender equality is not a bipartisan issue.

“Women don’t want special treatment, they just want equality,” she said.

“Australian women have been continually let down by the Morrison government. The Liberals have done next to nothing to address the gender pay gap over the last decade in office, and it’s clear they never will.”

This article was first published on SmartCompany. Read the original article here.

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