EQUAL PAY STATEMENT AND OBJECTIVE

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1 EQUAL PAY STATEMENT AND OBJECTIVE January 2011 Please ask if you, or someone you know, would like this document in a different format or language Equal Pay Statement AC 1

2 Contents 1.0 Introduction and Statement 1.1 Scope 1.2 Objective 1.3 Definitions 1.4 Responsibilities 1.5 References 2.0 West Lothian College Equal Pay Risk Assessment 2.1 West Lothian College Equalities Questionnaire West Lothian College Equality Impact Assessment 3.0 Factors which may contribute to a Gender Pay Gap 3.1 Occupational Segregation 3.2 Pay Structures 3.3 Caring Responsibilities 4.0 Future Actions To Implement The Equal Pay Statement and Objective 5.0 Complaints Equal Pay Statement AC 2

3 1.0 Introduction and Statement West Lothian College supports the principles of Equal Pay and is committed to ensuring that the procedures in place to determine pay and conditions of employment do not discriminate unlawfully and are free from bias. It is in the College s interest and best practice to operate a pay system which is transparent and is based on objective criteria. The College is committed to taking action to ensure that equal pay is in place for like work, work rated as equivalent and work of equal value. The College believes that in eliminating bias from pay systems it is promoting positive relations amongst staff, students and the wider community. This Equal Pay Statement provides information in relation to the action already taken by West Lothian College in furtherance of its commitment to Equal Pay. The Update also details forthcoming developments in this area. 1.1 Scope The principle of Equal Pay applies to all employees of the Board of Management of West Lothian College. 1.2 Objective The objectives are to demonstrate the College s commitment to Equal Pay by detailing the steps taken to date; to identify future actions to support good practice to eliminate bias from pay systems and to eliminate any unfair, unjust or unlawful practices that impact on pay. 1.3 Definitions For the purposes of this Statement and in line with relevant legislation, pay is defined as; The ordinary basic or minimum wage or salary and any other consideration, whether in cash or kind, which the worker receives directly or indirectly, in respect of his/her employment from his/her employer Pay, therefore includes pensions, discretionary bonuses and sick pay as well as other benefits of monetary value. Like work is defined as work which is the same or broadly similar. This can be determined by a general consideration of the types of work involved and the skill and knowledge required to do them. Different job titles, job descriptions or contractual obligations do not necessarily rule out a like work claim. Work of equal value is defined as work which is of broadly equal value when compared under headings such as effort, skill and decision making. Equal Pay Statement AC 3

4 Work rated as equivalent is defined as work which has achieved the same or a similar number of points under a job evaluation scheme. Line Manager is defined as the Centre Head or Department Manager for employees working in that Centre or Department; in the case of a Centre Head/Department Manager the Line Manager will be the Director or Assistant Principal to whom s/he directly reports. An Impact Assessment of a policy, procedure or practice is a thorough and systematic analysis to determine whether it has a differential impact on a particular group. 1.4 Responsibilities Ultimately, it is the responsibility of the Board of Management to ensure that employees are treated equitably. It is the responsibility of the Principal to ensure that the actions to implement the Equal Pay Statement and Objective are carried out and resourced. Specific responsibilities for the development and correct implementation of procedures that determine pay lie with the Director of Organisational Development. Line Managers are responsible for ensuring that they apply procedures relating to Recruitment & Selection, Flexible Working, Time Off and Salary Placement consistently and appropriately. These procedures are subject to regular review and are available to all staff on the College intranet, Serengeti. Line Managers are supported by the HR team in the operation of these procedures. Line Managers are also responsible for ensuring that job descriptions accurately reflect the duties undertaken by the postholder to enable an accurate evaluation of roles. The Director of Organisational Development is responsible for ensuring that this Statement is revised and maintained. 2.0 West Lothian College Equal Pay Risk Assessment It is recognised that to fully ensure that the principles of Equal Pay are supported, an organisation must be in a position to consider not only like work and work of equal value but also work rated as equivalent. Support staff posts within West Lothian College have been subject to job evaluation for some years, management and teaching posts have not been. Any comprehensive analysis of work rated as equivalent requires the application of a job evaluation scheme across the entire organisation and therefore any investigations into equal pay within the College were necessarily restricted to Equal Pay Statement AC 4

5 like work and work of equal value. Moreover, an examination of the support staff job evaluation scheme highlighted issues with the scheme such as an over weighting on matters such as length of service. The Board of Management therefore supported the objective to apply an analytical Job Evaluation Scheme to all posts within the College and the 2007 Equal Pay Policy provided for important stages within the development of this project. An Equal Pay Risk Assessment was carried out in advance of the project to implement a new Job Evaluation Scheme, in relation to gender equality. It is therefore intended that a further Equal Pay Risk Assessment be undertaken on completion of the Job Evaluation Project to ensure that the project has supported the College s objective in relation to Equal Pay. The existence of the new Job Evaluation Scheme at that time will enable a full assessment to be made covering all three aspects of Equal Pay. The Equal Pay Risk Assessment was undertaken in May 2010 and was based on data from the College payroll system extracted following the April 2010 payroll run. The Assessment approach was to consider work of equal value and like work. The absence of an all staff groupings Job Evaluation Scheme prevented consideration of work rated as equivalent at that time. The results of the Equal Pay Risk Assessment were generally positive with no significant exposure to equal pay challenges being identified. The limitations of this exercise in relation to work rated as equivalent were recognised however, and this supported the thinking that the college apply an analytical Job Evaluation Scheme to all staff groupings and that a new pay and grading structure based around the principles of equal pay be designed and implemented. The College has embarked upon a Job Evaluation Project which will support the implementation of a new pay and grading structure in The principles underpinning this significant project include the application of the scheme to all posts in the College, involvement of trade union representatives in the identification of the scheme, training and project management and involvement of staff in the preparation of questionnaires and attendance at meetings to evaluate roles. It was considered important to have the involvement of trade union and staff representatives at an early stage in the project. Representatives from Unison and EIS/FELA contributed to the identification of a scheme and Unison members have played a key role in developing the procedures which underpin the project. The scheme identified as being most appropriate was an analytical, factor based scheme called Evaluate provided by Northgate Arinso. It should be noted however that following the identification of the scheme, EIS/FELA colleagues indicated that they would not take any further part in the job evaluation process. The HR Manager has communicated with staff through all staff s and Unison branch meetings, to keep staff appraised of the progress of the project. The salary modelling phase of the project and negotiations with trade unions are ready to commence. The project also includes an Equality Impact Equal Pay Statement AC 5

6 Assessment of the resulting pay and grading structure and a further Equal Pay Risk Assessment. As stated above, the College will be in a position to properly consider Equal Pay in terms of like work, work of equal value and work rated as equivalent, the objective being that the latter Equal Pay Risk Assessment confirms gender equality within the revised pay and grading structure. On completion of this significant project, procedures will be developed, in consultation with staff and trade union representatives to ensure the maintenance of the Job Evaluation Scheme and to address any regrading and job evaluation matters. 2.1 West Lothian College Equalities Questionnaire 2010 The College s Policy and Equality Officer carried out an exercise with staff through completion of a questionnaire which explored staff awareness of and commitment to equality and diversity. This was carried out in mid-november, with the results of the survey expected to be available by mid-january This was carried out with the intention of moving toward award of the Investors in Diversity standard. Staff were asked their views in relation to the promotion of Equalities within the College, whether they considered that they had experienced unfavourable treatment as a result of a number of factors, including disability, faith and sexual orientation; whether they have been involved in Equality, Diversity and Inclusion activities within the college; whether buildings and facilities are accessible and whether they felt supported in terms of training in relation to their responsibilities regarding equalities issues. Results will be made available once the information has been collated, though it must be borne in mind that the exercise does have the usual limitations associated with a survey instrument such as only gaining the views of a proportion of the staff population and also the inability to verify the data obtained. The results will be helpful however in informing the ongoing impact assessment processes in relation to HR practices in particular and this information, along with ongoing consideration of the gender balance within posts within the College, can provide valuable information to formulate any further equalities objectives. 2.2 West Lothian College Equality Impact Assessment It is recognised that factors other than pay structures can have a bearing on a gender pay gap (as detailed in section 3 below). It is therefore essential that policies, procedures and practices are impact assessed to determine whether their application has a differential impact on particular groups of staff. The College Equality Impact Assessment process has been reviewed with the establishment of an Equalities Committee and the development of a revised Impact Assessment tool. The College has supported staff involved in the impact assessment process by providing training in the new scheme. In addition, all HR policies and procedures are reviewed on a 3 year cycle basis Equal Pay Statement AC 6

7 (or sooner if in response to changes in legislation, best practice or policy). An impact assessment is included in this process and informs the review to eliminate or minimise any identified differential impact. Quarterly monitoring information where activities such as applications, appointments, staff development, conduct hearings, grievance and leavers are monitored in relation to gender, age, disability and ethnic origin is used to inform the equality impact assessment of HR Policies and Procedures. 3.0 Factors which may contribute to a Gender Pay Gap West Lothian College recognises that a gender pay gap may not solely be caused by men and women receiving different rates of pay for doing the same or similar work. Within an organisation there may be other factors or employment practices which contribute to a Gender Pay Gap such as the impact of caring responsibilities, occupational segregation, organisational structures and pay and grading structures. The steps taken by West Lothian College in relation to Equality Impact Assessment (with the formal requirement to consider and record how a policy or procedure might impact on different groups) is designed to support the identification of such factors and take steps to eliminate or minimise such an impact. 3.1 Occupational Segregation Women and men can tend to work within gender segregated occupations and the jobs that are most likely to be carried out by women tend to be those associated with low pay. These occupations are often referred to as the 5 Cs (cleaning, clerical, cashiering, catering and caring). West Lothian College employs staff in the occupations of cleaning, clerical, catering and caring (student support) which are, as with most other organisations, predominantly filled by female staff. Indeed the overall staff population within West Lothian College is predominantly female with August October 2010 monitoring data indicating that 66% of staff are female. This is compared to the local population gender balance of 52% female. Actions to address gendered occupational segregation can include an analysis of the recruitment practices, training opportunities and workplace practices. Occupational segregation can also result in the existence of a glass ceiling where management roles within an institution are predominantly filled by male employees. The Recruitment and Selection process provides for a formal process of recruitment where the essential and desirable criteria for posts is identified and published. In addition, all selection decisions are supported by a member of the HR team at all shortlisting and interviewing events. In relation to training opportunities, this is identified through the College Performance Development Career Review (PDCR) process. Given that the Investors in People framework focuses on equality of opportunity and the culture of the organisation, the College s successful assessment in relation to Investor In People status in 2010 supports the assertion that CPD and training Equal Pay Statement AC 7

8 opportunities are identified, organised and evaluated in a systematic and nondiscriminatory way. 3.2 Pay Structures It is recognised that pay structures can have a direct impact on the gender pay gap and as detailed above, the College has embarked on a Job Evaluation Project to support the implementation of an equality proofed pay and grading structure. Women tend to have shorter service than men and therefore pay structures determined by long service can have a detrimental impact on the salaries paid to women for similar work to male comparators. West Lothian College currently operates salary placement procedures based on relevant qualifications and experience. A complete review of this process will be undertaken consequent upon the implementation of a new pay and grading structure, with any new or revised processes being impact assessed and a further Equal Pay Risk Assessment being undertaken on completion of the project. 3.3 Caring Responsibilities Women are more likely to have caring responsibilities which can result in them seeking part time work in order to balance their responsibilities. West Lothian College recognises that the opportunity to work flexibly, and thus strike a better balance between home and work responsibilities, can benefit all employees, their families and the College. The opportunity to apply for flexible working is in place in the College, with both male and female staff currently enjoying flexible working terms. 4.0 Future Actions To Implement The Equal Pay Statement and Objective The most significant action in relation to the College Equal Pay Statement and Objective is the implementation of the new pay and grading structure resulting from the Job Evaluation Project. There are specific steps which must be completed to ensure the College s successful progress towards this as detailed below: Equal Pay Statement AC 8

9 Action Timescale Undertake Impact Assessment of Pay and Grading February 2011 Structure Review and Impact Assess Salary Placement Process February 2011 Impact Assess Pay Protection Arrangements February 2011 Update College Job Descriptions July 2011 Undertake a review of College Person Specifications Ongoing Develop and Impact Assess Regrading and Job July 2011 Evaluation Procedures Undertake monitoring activities in relation to the new January 2013 pay and grading structure to inform impact assessments and develop appropriate strategies. 5.0 Complaints Complaints or enquiries about the lack of equal pay should, in the first instance, be made to the HR Manager. If this informal approach does not satisfy the employee then the HR Manager will refer the matter to the Principal in order that an Investigating Officer be appointed, in accordance with the College Grievance Procedure. Equal Pay Statement AC 9

10 Appendix Equality Impact Assessment December 2010 Date of Procedures: October 2009 Version: 2 Written by: Approved by: Responsibility for reviewing: Review date: December 2010 Equal Pay Statement AC 10

11 Section 1: Background Information What is an equality impact assessment? An equality impact assessment (EIA) is a process which identifies the potential impact of West Lothian Colleges (WLC) policies, procedures and projects on its students and staff. This process can help staff to deliver excellent services to their students by making sure that the diverse needs of the students are considered. By carrying out EIAs, WLC will also ensure that the services that it provides fulfil the requirements of anti-discrimination and equalities legislation. Further web based information resources on the range of issues considered as part of and EIA, as well as background and procedural information, can be found at Annex A. What is the purpose of an EIA? EIAs offer an opportunity for WLC staff to think about the impact of their work upon the students and other members of staff. EIAs should make sure that equality is placed at the centre of policy development and review, as well as service delivery. EIAs should be used to take action that will promote equality for all. The EIA process focuses on: initial screening; scoping and defining; information gathering; making a judgement; action planning; and publication and review. EIAs can be used to: increase participation with students and staff in policy, procedural and project development; change to the culture of public decision making by making more transparency; and proactively promote equality and put it at the centre of college decision making. Equal Pay Statement AC 11

12 1. How are EIAs carried out? The EIA process should be used when developing or reviewing: policy strategy procedure function project reviews services organisational change. At the end of the process there will be a summary report published to let people know the outcome of the assessment. The actual process is described fully below in section When are EIAs carried out? In line with statutory requirements, WLC must conduct impact assessments as soon as new policies, procedures, projects or services are considered. It should be an integral part of the development process. Existing policies and procedures should have EIAs conducted on them as part of the rolling policy review process. 3. Who carries them out? The responsibility for conducting EIAs lies at the service level. Appropriate managers are responsible for conducting EIAs, when necessary. Frontline staff are important in the assessment process as they will be involved in implementing actions and changes that the assessment identifies as being necessary. It does not have to be an equalities officer who carries out the EIA. When considering the equalities implications it is necessary to involve others who may offer challenge to views or some evidence of impact. 4. Why do we carry them out? The EIA process is not just a legal requirement required by certain legislation; it should be seen as a means to help WLC to improve its policies, strategies, procedures, projects, etc. EIAs also have an important part to play in helping guide an institution through organisational change and development. They should be conducted in such a way as to benefit the whole of the WLC community, and not just for minority groups. In practice this means meeting the common duties in relation to students, staff as follows: to ensure that they are not denied opportunities; Equal Pay Statement AC 12

13 to eliminate discrimination on these grounds; to eliminate harassment and victimisation either because they are a member if one (or more) of these groups or the basis of associated perceptions about them, or whom they associate with; and to provide fair and equitable opportunities for training and promotion. 5. Who are the target equality groups? EIAs can be used to focus on specific equality strands. This can help promote equality of opportunity for a particular group, or more generally. For instance, certain groups may be known to experience more disadvantage than others. They could be adversely affected by, or omitted from the benefits of, a policy or service. This needs to be carefully considered in the context of the EIA process. There are a range of different equalities target groups. The EIA focuses on these groups to try to find out whether or not they are benefiting from a strategy, policy, service, project, etc. These groups stem from the existing legislation in the United Kingdom that covers discrimination. The groups and target areas include: age; sexuality; faith or belief; race; ethnicity; disability; and gender. The groups are not homogeneous and people within these groups have different and individual needs. Many will be members of several of the targeted groups. Their experience of unlawful discrimination can involve a variety of factors which should be considered as part of the EIA process. Equal Pay Statement AC 13

14 Section 2: The Equality Impact Assessment Process Phase 1: Screening and Prioritisation In Phase 1 of the Equality Impact Assessment (EIA) Process the policy, procedures, project, strategy etc is screened to establish if it has an impact upon anyone as a consequence of any of the characteristics of the six strands of equalities (age, sexuality, faith or belief, race, ethnicity, disability, and gender). A single EIA should be conducted and recorded for each individual policy, procedures, project, strategy etc. The following should be completed for each EIA. Name of policy Named individual responsible for policy Name of person conducting initial EIA Supporting notes to help in the completion of Phase 1 Consider impact in terms of disability, race, age, gender, religious belief, sexuality and trans-identity (the six strands) and other groups who may experience disparities in opportunity. Make use of existing knowledge, experience, research and consultation. Caution is needed not to consider a policy or project equality neutral just because no evidence of adverse impact exists (e.g. little research exists with regard to new equality areas such as sexual orientation). When thinking about positive impact consider ways to tackle discrimination, promote equality of opportunity and promote good community relations. Equal Pay Statement AC 14

15 Q1. Given the aims of the proposed policy, project, strategy, etc is it likely that there will be a negative impact on one or more of the groups named above. Or is it clear at this stage that it will be equality neutral? Strand Impact (explain) Race Gender Disability Religion/belief Sexual orientation Age Comments: Equal Pay Statement AC 15

16 Q2. For which groups are there likely to be a negative impact? What is this impact likely to be, and what plans could be built in to address negative impacts and to add measures which promote a positive impact at this stage? Strand Race Plans to address Impact (explain) Gender Disability Religion/belief Sexual orientation Age Comments: Equal Pay Statement AC 16

17 Q3. At this stage, how could the policy, project or strategy promote positive impacts for any of the groups named above? Q4. Is a full impact assessment required? YES / NO (use box to explain rationale behind decision) Signature of named individual responsible for policy Signature of individual responsible for carrying out initial impact assessment (if different from previous) Date of completion of initial impact assessment In the event of a full impact assessment being required this document must be attached and used as part of that process Equal Pay Statement AC 17

18 Phase 2: Full Equality Impact Assessment Once Phase 1 has been completed and it has been deemed necessary to conduct a full EIA for a given policy, procedure or project the following questions should also be worked through. Q5. Summarise the evidence that describes the current situation for those groups where an impact has been initially assessed, and the sector or geographical area in which this strategy / policy / project will operate. Comments: Q5. Supporting Notes Consider impact in terms of disability, race, age, gender, religious belief, sexuality and trans-identity and other groups who may experience disparities in opportunity. Look at existing evidence, research & data or statistics (both quantitative & qualitative). Are any of these groups under or over represented, do they have access to the same resources and is the reality of their experience the same? Is it useful to consider the underlying causes of any inequalities? Equal Pay Statement AC 18

19 Q6. Where the initial impact assessment indicated that there is potential for this strategy, policy, project, etc to have a negative impact on one or more group, provide further information. Strand Impact (explain) Race Gender Disability Religion/belief Sexual orientation Age Comments: Q6. Supporting Notes Is this impact likely to be different for different groups? Are some equality groups excluded from the benefits? Are there barriers to certain communities enjoying the benefits? Are certain sub-groups disadvantaged e.g. Gypsies and Travellers or Somali community? Does it challenge or reinforce stereotypes? Does it give different groups real choice? Equal Pay Statement AC 19

20 Q7. Where the initial impact assessment showed that there is potential for this policy, project, strategy, etc to have a positive impact, such as tackling discrimination, promoting equality of opportunity for any or more group, provide information. Strand Positive Impact (explain) Race Gender Disability Religion/belief Sexual orientation Age Comments: Q7. Supporting Notes Is this impact likely to be the different for different groups? Will this project help communication between groups by providing ESOL classes for example? Does it support education for Black, Asian and Minority Ethnic (BAME) groups where needed? Is there a focus on reducing barriers for a specific group e.g. disabled people? Are jobs created accessible to all? Does this strategy extend the provision of affordable childcare? Does it harness the potential of refugees and asylum seekers to contribute to Scotland s economy? Equal Pay Statement AC 20

21 Q8. Given your answers to the previous questions, how will your delivery plans be revised to reduce or eliminate negative and to enhance positive impacts? Comments: Q8. Supporting Notes If the assessment shows that no adverse or positive impact is likely (equalities neutral) this might be acceptable but consider if measures could be added to promote WLCs equality aims. If the assessment shows adverse impact consider if the project is legal and how this adverse impact can be reduced. This might include finding another way to meet the objectives, introducing new steps to meet specific needs for specific groups. Can the adverse impact be justified by overall aims or by other legislation? If the strategy, policy, project, etc are unlawful it must be changed. Ensure any changes don t disadvantage another group. If the assessment shows your policy, project, strategy, etc is not likely to result in adverse impact and does promote equality then there may be little revision required. Some policy, project, strategy, etc have a differential impact because they are designed to promote equality for a specific group. This can be justified as part of a wider strategy but a clear rationale should be given Equal Pay Statement AC 21

22 Q9. Where the initial EIA indicates that this policy, project, strategy, etc may impact adversely upon community relations and cohesion, the gender pay gap, attitudes toward disabled people, the involvement of disabled people in public life, or require special steps to be taken for disabled people, provide further information. Additional Considerations Impact (explain) Community relations and cohesion The gender pay gap Attitudes toward disabled people Involvement of people in public life Special steps for disabled people Q10. Where the initial impact assessment indicated that this policy, project, strategy, etc provides an opportunity to promote equality in terms of community relations and cohesion, the gender pay gap, attitudes toward disabled people, the involvement of disabled people in public life, or require special steps to be taken for disabled people, provide further information Additional Considerations Positive Impact (explain) Community relations and cohesion The gender pay gap Attitudes toward disabled people Involvement of people in public life Special steps for disabled people Equal Pay Statement AC 22

23 Q11. Given your answers to the above questions how will your delivery plans be revised to reduce or eliminate negative impacts and to enhance positive impacts? Comments: Q12. How have or will the different stakeholders / beneficiaries / staff who are affected by this strategy / project / policy be consulted? Please note any important issues Comments: Equal Pay Statement AC 23

24 Q12. Supporting Notes Has relevant consultation already taken place? If not how and when will consultation take place? Will this be direct consultation with the minority groups and / or organisations that represent them? What steps will be put in place to ensure full participation is possible e.g. using sign language interpreters for events, provision of crèche facilities arranging meetings in local community venues at different times of day, questionnaires available online etc. How will those consulted be informed of the outcome of the process? Is it possible to carry out a joint consultation with a similar project or a project in the same geographical area? Q13. How will the real impact of this policy, project, strategy, etc on groups be monitored to ensure all targets set are met? Comments: Post EIA Once an EIA has been conducted it is important to make certain that correct monitoring and review mechanisms are in place to ensure that predicted outcomes and outputs are delivered. These should be factored into the initial EIA process and timelines for the review and development of the item agreed and published along with the policy, project, strategy, etc. If circumstances change or unexpected situations develop that could impact upon a policy, project, strategy, etc the relevant items should have another EIA conducted upon them as necessary in light of the changed circumstances. It should not be the case that necessary reviews are not conducted because a suggest review date has not yet been reached. Equal Pay Statement AC 24

25 Annex A: Supporting information, guidance Information and advice is available on the internet to help you to understand the issues which are addressed through the EIA process and more generally as part of the Equalities agenda. The following are useful resources to consider for some of the questions posed by the EIA process. Further web based searching is encouraged to help expand and develop issues and ideas more fully. Q1. Web-links - information drawn form the Census, Labour Force Survey & Index of Multiple Deprivation etc -faith information - age information and further links sexual Orientation information - Equality and Human Rights Commission Scotland Q2 and 3 Web-links - race issues in more depth - gender and other equality issues in greater depth - disability issues in more depth - sexual orientation issues in more depth - age issues in more depth Q4 Web-links - Information on how to conduct a consultation - Guidance on how to ensure that equalities groups are included in consultation exercises. -The North West Forum on Ageing s website Equal Pay Statement AC 25

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