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Call for ethnicity pay reporting to be mandatory


Only a minority of leading companies report their ethnicity pay gap, research suggests.

A management group is calling for ethnicity pay reporting to be made mandatory to improve workplace equality.

The Chartered Institute of Personnel and Development (CIPD) said its research indicated just 13 FTSE 100 companies currently report any ethnicity pay gap.

The professional body for human resources staff has launched a guide to help employers collect and analyse data.

Despite the Black Lives Matter protests leading to organisations condemning racism and discrimination, few have voluntarily reported their ethnicity pay gaps, said the CIPD.

Peter Cheese, chief executive of the CIPD, said: “Ethnicity pay reporting is an important lever for businesses and their stakeholders to assess if and where inequality based on ethnicity exists in their workforce.

“While it’s positive to see some organisations voluntarily report their ethnicity pay, it’s clear that progress is slow and reporting is very inconsistent.

“Some companies just report their data while others report a commitment without sharing the data behind it.”

Taranjit Chana of the GMB union commented: “This is not about quotas or box ticking, this is about fairness and common human decency.

“Why are only 6% of top jobs in the NHS and 3% of police chief inspectors black, Asian and minority ethnic workers?

“The UK urgently needs an ethnicity pay gap enshrined in law to tackle this rampant inequality.”

A Government spokesperson said: “Building a fairer economy means ensuring the UK’s organisations reflect the nation’s diversity. The Commission on Race and Ethnic Disparities published its independent report earlier this year, which included recommendations on ethnicity pay reporting.

“We are considering the commission’s findings on this matter alongside feedback to our consultation on this issue and other work, and will respond to the commission’s report in due course.”

Matthew Fell, CBI chief UK policy director, said: “Ethnicity pay gap reporting is one of the most transformative steps to address race inequality at work.

“Companies want to see the introduction of mandatory ethnicity pay gap reporting, in the same way as they do for gender.

“Because closing the gap is not just the right thing to do: the business case is watertight.”

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