Women's work and pay

Photographer : Dan Eriksson

What’s the issue?

Theoretically, Australian women and men have an equal playing field when it comes to employment. Since the early 1970s, it’s been illegal to pay a woman less, or to choose not to promote her because of her gender. Most Australians take these laws for granted and assume there is now no difference between being a man and a woman in the workplace.

The reality is very different. Women are still bumping their heads on that immovable glass ceiling – the invisible barrier in a company which prevents women from being promoted beyond a certain point. 2008 studies show that we have decreasing numbers of female executives in Australia; less than the United States, Canada and the United Kingdom.

Women receive fewer promotions and bonuses, and are more likely to be undervalued by their boss. Scariest of all, women still receive less money than men for doing exactly the same job. This pay gap can be as much as 24 per cent, and 2008 statistics show the gap is getting wider.

How big is the gap?

The gap between men and women’s earnings for the same work can be staggering. The 2008 federal parliament enquiry into women’s wages showed that on average Australian women are paid 12-18 per cent less than their male counterparts. For an average woman to match the average man’s earnings in a year, she has to work an extra 14 weeks full-time.

Male dominated industries are more likely to reward men. One of the biggest differences is in finance and insurance companies, where women can expect to be paid 24.7 per cent less. Science and engineering has a 16 percent gap. The smallest gap is in hospitality work, a typically female dominated industry, where men only receive 1.1 per cent more than women.

Women’s wages are not even safe once they are promoted to a leadership position. Female executives are typically paid 18 per cent less, and female general managers lose out on 13 per cent.

What other workplace disadvantages do women experience?

Assumed family responsibilities: A lot of women’s workplace issues come down to the fact that bosses assume women have children, or may have them sometime in the future. This makes some bosses unwilling to give important roles to women in case they take maternity leave. Women are more likely to take casual or part-time jobs so they can attend to responsibilities in the home. This may sound like a good way to balance work and home life, but casual positions do not necessarily come with benefits like paid leave. Bosses traditionally assume that men are primary earners for a family, and may think it is okay to pay a woman less because hers is only the second household pay-check.

Undervaluing women’s work: Jobs which involve cleaning, cooking, nursing, social skills or working with children are traditionally considered women’s work. There is a lingering old fashioned assumption that women are born with these nurturing social skills and are just doing what comes naturally. As a result, the women who take on these roles are undervalued and underpaid.

Gender discrimination: Some workplaces are more blokey than others. Men make up the majority of employees in mining, construction, and engineering, so it can be hard for a woman to break into these industries, or be promoted when she gets there. Even in policing and other public service careers, where the employer is technically the government, women receive less pay, or are rarely promoted above certain ranks.

Superannuation: Retirement is a big problem, with many elderly Australian women living out their final years in poverty. 50 per cent of women aged 45-59 have $8000 or less saved in their retirement fund, while on average men have $31, 000. The average superannuation payout for women is $37 000, only one-third of the $110 000 payment for men.

Why are women disadvantaged?

The assumption is that women experience career setbacks simply because they take breaks such as maternity leave, or take on part-time work so they can meet family needs. Research says that isn’t the case – these disadvantages occur straight out of studies, with male graduates earning more than their female counterparts after only one or two years in the workplace. It’s actually the unfair wages that force many families to make the man the breadwinner and the woman the carer, not the other way around.

The Australian Institute of Management says that women less likely to be paid what they are worth because they don’t negotiate hard enough. When the average man is promoted, he negotiates for more money. Women are often more likely to think of the job offer as the reward, possibly because of the poor promotion climate for women, or because they are uncomfortable about pay negotiation. Female-dominated industries also tend to be less likely to pay their employees bonuses.

What’s being done?

In 2008, The federal government established a parliamentary inquiry into pay equity. They asked for annual reports of gender pay data from all employers across Australia. The data is necessary so that private employers know the facts, and so the government can review women’s work legislation to make Australia fairer.

Whatever legislation changes are made to ensure promotion and pay, independent bodies such as the Australian Human Rights Commission and the Diversity Council of Australia recommend that change has to start with how we think about women and men in the workplace. Paid parental leave, not just for mothers, but for fathers, is necessary for equality. The burden of family work in the home and paid work needs to be shared equally by mothers and fathers. The notions of “male” and “female” jobs need to be actively worked against if Australia wants to see real and lasting change.

How do I know this?

Parliament of Australia Website, ‘Inquiry into pay equity and associated issues related to increasing female participation in the workforce’ www.aph.gov.au/house/committee/ewr/payequity/media.htm, viewed Nov 13, 2008.

Australian Human Rights Commission website, ‘The gender gap in retirement savings' www.hreoc.gov.au/sex_discrimination/ programs/gender_gap.html, viewed Nov 13, 2008.

Courier Mail website, ‘Equal pay still just a dream for women’ www.news.com.au/couriermail/story/0,23739,24580672-5013522,00.html, viewed Nov 13, 2008.

Diversity Council of Australia website, www.dca.org.au, viewed Nov 13, 2008.

Equal Opportunities for Women in the Workplace Agency website, www.eowa.gov.au, viewed Nov 13, 2008.