Ambitious plan to tackle wage gap in Aussie businesses under a federal Labor government

Pay discrepancies between men and women in big businesses could see companies named and shamed under an ambitious federal Labor government plan.

Big businesses could be named and shamed over pay discrepancies between men and women and it would be easier for the Fair Work Commission to order wage increases in female-dominated industries under a federal Labor government.

Anthony Albanese will on Monday use International Women’s Day to unveil a suite of policies he says would reduce the gender pay gap in Australia.

The announcement comes amid furious discussion in Canberra over the treatment of women, with workplace issues likely to feature heavily at the federal election, which could be this year.

The federal opposition leader said it was “beyond belief” that work in traditionally female-dominated sectors, including aged and disability care, was “undervalued.”

“Closing the gender pay gap means boosting women’s wages – particularly when women aren’t receiving equal pay for work of equal or comparable value,” Mr Albanese said.

“Only Labor will make sure no woman is held back, and no woman is left behind.”

Women on average earn $25,534 less than men every year, according to research from the Gender Equality Agency.

Labor Leader Anthony Albanese backs the plan Picture: NCA NewsWire / Gary Ramage

Labor will propose four key changes to deal with the stubborn problem, including forcing companies with more than 250 employees to publicly report their gender pay gap.

While companies are already required report gender pay data to the Workplace Gender Equality Agency each year, the changes would see businesses named on a searchable portal.

They would be forced to share pay gaps across the company, as well as at the managerial and non-managerial levels.

Companies would also be allowed to submit a statement explaining why their pay gaps exist and any and all measures they are undertaking to reduce them.

Non-compliance would see businesses named and shamed and made ineligible for government contracts.

Pay secrecy clauses would also be banned, handing workers the right to disclose their pay if they wanted to.

It is hoped greater clarity would make it easier for workers to argue for pay rises.

Changes would also be made to make it simpler and easier for the Fair Work Commission (the Commission) to order pay increases for workers in low-paid, female-dominated industries.

The introduction of a statutory Equal Remuneration Principle would guide the Commission’s consideration of whether workers in female-heavy workplaces were paid fairly.

It would mean the Commission would no longer need to assess the pay of a male within the same industry to decide if workers were receiving equal pay for equal work.

Mr Albanese is also vowing to address the gap in pay within the Australian Public Service, committing to gender pay audits across all departments and agencies within the first 365 days of a Labor government.

The Herald Sun understands the process would then likely be redone some years later to check progress.

Labor has already announced it would legislate a right to ten days of paid family and domestic violence leave to make it easier for women to keep their jobs while escaping unsafe situations.

“Income and financial capacity are key determinants to whether a woman is able to escape family or domestic violence,” opposition industrial relations spokesman Tony Burke in December.

“In leaving abuse or violence, women incur significant time and financial costs including finding a new place to live; seeking legal support; receiving medical treatment; or enrolling their children in a new school.

“No one should have to make the choice between their earning capacity and their safety.”

Cheaper childcare and improved job security for women are also among Labor’s key policies, with more to be hashed out at the upcoming national conference.

@tamsinroses