Government launches new measures to reduce gender pay gap

The Ministry of Labour and Social Insurance put forward a series of policy measures seeking to reduce the gender pay gap between men and women in June 2008. The gender pay gap currently stands at 24% in Cyprus, which is the largest pay gap among the EU Member States. This article outlines some of the key proposals of the policy measures, which have been distinguished according to four main policy packages.

In June 2008, the Department of Labour Relations of the Ministry of Labour and Social Insurance (Υπουργείου Εργασίας και Κοινωνικών Ασφαλίσεων, MLSI) submitted for approval a range of specific policy measures seeking to reduce the gender pay gap in Cyprus. The proposals were made on the basis of the conclusions of a study entitled Analysis of the pay gap between men and women in Cyprus and practical recommendations for reducing it (CY0707019I). The proposed project is part of the [Operational programme employment, human capital and social cohesion (unofficial English translation; 112Kb MS Word)](http://www.planning.gov.cy/planning/planning.nsf/All/C4A67FFAA001659BC22574D70023743D/$file/Translation OPEHRSC 190608.doc) for the period 2007–2013.

Aims of policy measures

The government proposal distinguishes between four main policy packages which aim to:

• strengthen and upgrade the mechanisms for monitoring equality in employment;

• create a more favourable work environment which fosters gender equality and the career advancement of women;

• combat gender-based job segregation;

• increase information and awareness, and promote research on issues concerning equal treatment for men and women at work.

First package of measures

Training of inspectors

Among the first package of measures is a provision for an integrated programme of theoretical and practical training for officials responsible for monitoring and implementing the legislation on gender equality at work. Specifically, this measure envisages training seminars and about 150–200 hours of training, with contributions from external experts, preferably from countries where the system of gender equality inspection has been successfully implemented. As regards the content of the training, the subject matter deals with a range of issues – such as interpretation and analysis of the relevant legislation, mediation techniques, and the skills required for performing the tasks of inspector, including communication skills and bargaining techniques. In addition to the theoretical part of the training, it would also include on-the-job training for participants in the form of workplace inspections.

Improved mediation

A second measure involves the production of relevant material for better mediation in cases of discrimination. The goal of this action is to investigate complaints with a view to addressing more effectively cases of unequal treatment of men and women at work, particularly in matters concerning equal pay, through the use of practical tools. Such tools would address the means of identifying cases of discrimination, the investigation and handling of relevant cases and complaints, the manner of examining complaints and research methods, as well as consultation and conciliation techniques for both sides.

Implementation measures

Provision has also been made for the production of a guide to the implementation of the legislation on equal treatment for men and women at work and on vocational training, as well as a manual on the interpretation and practical implementation of the legislative provisions in relation to the principle of equal pay for men and women for the same work or work of equal value. The competent government departments and officials responsible for implementing the relevant laws would be supplied with pertinent material. In addition, relevant circulars would be published and directed at industrial relations inspectors and equality inspectors, as well as the head inspector; these circulars would make detailed reference to the means of and procedures for performing inspectors’ tasks.

Promotion and awareness raising

The same package provides for the promotion of information actions on: the existing monitoring mechanisms, the legislation and procedures for protecting the equality of both sexes at work, and workers’ rights in cases where the relevant legislation is violated. The objective of this action is to highlight the role played by the existing mechanisms and to increase people’s awareness of the inspection system. At the same time, it seeks to build citizens’ knowledge and awareness of issues of equal treatment of both sexes at work and in pay matters.

Second package of measures

Measures targeting Cypriot enterprises

Among the second package of measures is the proposal to provide funding for Cypriot enterprises to design and adopt equality schemes, for the purpose of creating a work environment that is completely open to women’s employment and that will promote equal opportunities for men and women at all levels. It is foreseen that such schemes will be designed on the basis of similar practices that have been implemented in Europe – including measures to reduce the pay gap in favour of women, measures identifying and combating wage discrimination, and measures estimating the cost of the necessary pay adjustments.

The specific equality schemes will be promoted as a priority in enterprises with large numbers of employees. However, it will also be possible to strengthen smaller enterprises’ efforts to address specific instances of discrimination or the more general establishment of the principle of equal treatment for men and women at work.

Establishment of new monitoring body

In the same context, provision is made for the creation of a special ‘Working Environment Gender Equality Certification Body for Enterprises’. This body would be responsible for the overall monitoring of practices promoted or implemented to combat gender discrimination, including equality schemes to be implemented by the enterprises. The establishment and organisation of this mechanism would function in conjunction with the social partners, and it is foreseen that it will be reinforced with support actions for fact finding, systems development and the organisation of certification procedures.

Study on gender discrimination policies in workplace

In the same package, it is planned to carry out a specialised study regarding the institutional and socio-political preconditions for adopting positive discrimination as a transitional measure, in order to boost female employment, more rapidly reduce the pay gap, and address women’s lower participation in the higher hierarchical grades. The study would investigate and evaluate the results of similar policies in other European countries. It would also examine the necessary procedures and mechanisms for taking forward the relevant interventions in Cyprus, along with the role that the public authorities and social partners are called on to play to this end.

Development of guidance material

Another important action involves the production of specialised material to serve as a point of reference and guidance for employers in matters of equal pay. This material would include in particular:

• self-evaluation questionnaires to determine the extent to which equal pay is implemented in an enterprise;

• personnel management methods for the introduction of equal pay and the gender aspect into the organisation as a whole and in the operations of the enterprise; such measures would also allow for the analysis of internal operations based on the criterion of gender equality;

• equal pay indicators for men and women regarding the wage policy of each enterprise;

• codes of practice for the implementation of the principle of equal pay for work of equal value, in the framework of a step-by-step description of the necessary preconditions and means for confirming its proper implementation.

The relevant material would be distributed to all companies in Cyprus, along with the employer and business organisations, hence targeting not only those working in enterprises – such as personnel officers, payroll officers and accountants – but also equality and labour inspectors. The reference and guidance material would cover all matters concerning questions of equal pay – for example, national and European legislation, case law and practical examples.

Another important aim in the same framework is the development of specialised evaluation tools in printed or electronic formats, which would allow for a detailed description of the content and duties of each job in line with the pay set for each job, for the purposes of a direct comparison between the situation of men and women. This would facilitate the work of the inspectors as well as that of the enterprises that wish to set pay on the basis of the principle of equal pay for men and women for the same work or work of equal value.

Third package of measures

The third package of measures on combating gender-based job segregation are focused on adapting school careers to the principles of gender equality, as well as providing for broader information and awareness building for teachers in primary and secondary schools on the question of combating gender-based segregation in the workplace. These measures would also seek to adapt school curricula and books in order to eliminate the stereotypes that are perpetuated regarding the role of women at work, in the family and in society at large.

Fourth package of measures

Finally, provision is made to implement a range of actions for information and awareness building of public opinion with regard to the gender pay gap in Cyprus. This would be achieved through advertising in the media, targeted reports in the printed and periodical press, the distribution of printed matter, making discussions open to the public, and the creation of a special website. In the same context, it is proposed that a series of targeted programmes would be organised to provide information to the social partners, as well as to specific professionals – such as lawyers, legal consultants, accountants and personnel managers. At the same time, research on the analysis of the wage gap in Cyprus would continue.

Social partner involvement

The proposed project was communicated to the social partners on 29 May 2008, so that they could submit their recommendations and comments. Although the parties were given only two weeks to respond, the recommendations of the employer organisations and the trade unions have been incorporated into the final text of the proposed measures, as presented above.

Implementation of project

With regard to the implementation of the proposed actions, the MLSI is seeking co-financing from the European Social Fund (ESF). As the ministry was awaiting final approval at the time of writing, the launch date for the proposed project has not yet been announced – neither for the project as a whole, nor in relation to its individual actions.

Eva Soumeli, Cyprus Institute of Labour (INEK/PEO)