Today, I’m writing about something that affects all women working for Australian employers – the gendered pay gap that affects every Australian occupation, sector and industry. While this inequity has been evident for as long as I can remember, since Julia Gillard’s ascendancy to the Prime Ministership, I’ve noticed a growing – and incorrect – belief, amongst both men and women, that Australia’s gender gap has closed. The argument goes something like this:
“We’ve got a female Prime Minister, female Governor General, female Premiers and 12% of board seats on ASX 200 companies are taken by women. We have paid parental leave, sexual harassment is illegal and women are taking over non-traditional industries in droves… what more do you want?”
Well, I want a lot more.
And one of the things at the top of my list is pay equity for women – forty years after women’s right to be paid equal for work of equal value was recognised in 1972, women working full-time, year-round, in Australia on average earn only 83 cents for every dollar earned by a man. Equal Pay Day was initiated by Australia’s Equal Opportunity for Women in the Workplace Agency in 2008 to draw attention to this gender-based inequity. This year, Equal Pay Day is taking place today, 1 September, to highlight the fact that to close this year’s gap, women would have to work an extra 63 days beyond the end of the financial year to match what men earned by 30 June. The fact that women on average are paid 17.2% less than men works out at an annual deficit per woman of over $12,500. But the story doesn’t end there. To get the real picture, it’s necessary to consider the flow-on benefits that go with a higher wage – higher rates of sick leave, annual leave and loadings, the additional superannuation payments made on higher salaries, the compounding effect of that super over a forty year career and higher income protection and workers compensation payments, just for a start. And moving away from the inequity in payment for full-time work, women’s tendency to take long career breaks when they have children and then take up part-time work if or when they return to the workforce, exacerbates this situation exponentially. That’s why at $150,000, the average superannuation payout to a woman in 2010-11 is projected to be half that of the average payout to a man; and if things remain as they are, the average 25 year old male will earn $2.4M over the next forty years; just on $1M more than the average 25 year old female, who will earn $1.5M. That’s also why Australia’s largest group of people facing homelessness for the first time is women over 45, with over 26,000 sleeping rough on Australia’s eastern seaboard alone – many of whom have won possession of the family home after marital or partnership breakups – but because of gendered work patterns, have found themselves with no source of income to make mortgage payments or otherwise support themselves.
There are many cultural and historical factors that have caused Australia’s gendered pay disparity and it’s not going to go away overnight.
In fact, the Australian government is now backing away from its support of the equal pay case conducted through Fair Work Australia, which sought pay rises of between 14 and 50 per cent for about 200,000 mostly women workers in the social and community services sector. Last year, the government signed an agreement supporting the case. However it has since argued that a pay rise would place too much strain on the budget bottom line and would result in cuts to services. Obviously without political support to close Australia’s gendered pay gap, it’s going to be an uphill battle to get positive results. And there is no indication at all that a change of government would be any more favourable to overcoming the situation. But even if we have to live with this inequity in the foreseeable future, there are strategies to minimise its long term financial impact. Think pragmatically about where you’re heading with your career. Will it give you the lifestyle you seek in the future? Have you considered career opportunities in male dominated fields – engineering, science, technology, trades and “hard hat” industries – all of which tend to pay better than the traditional soft industries that women favour? Don’t sell yourself short when negotiating salary at your next job interview. Start planning for your long-term financial security early, so you don’t get caught with insufficient funds to maintain your lifestyle in retirement or in the event of divorce or separation. And because knowledge is power, you can also help raise awareness of Australia’s gendered pay gap by going to equalpayday.com.au and EOWA, where you can participate in surveys, download informative posters, postcards and other resources, including surveys, information, reports and other tools to assist all Australian employers implement sound, equitable and sustainable practices to close their own gender-based pay gaps. Sincerely, Susan
