Wage determination and sex segregation in employment in the European Community

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SOCIAL EUROPE
WAGE DETERMINATION
AND SEX SEGREGATION
IN EMPLOYMENT IN THE
EUROPEAN COMMUNITY SOCIAL EUROPE
Wage determination and
sex segregation in employment
in the European Community
SUPPLEMENT 4/94
EUROPEAN COMMISSION
DIRECTORATE-GENERAL FOR EMPLOYMENT, INDUSTRIAL RELATIONS
AND SOCIAL AFFAIRS The information contained in this publication does not necessarily reflect either the position or views of
the European Commission.
Luxembourg: Office for Official Publications of the European Communities, 1995
© ECSC-EC-EAEC, Brussels · Luxembourg, 1994
Reproduction is authorized, except for commercial purposes, provided the source is acknowledged.
ISBN 92-826-7178-X
Printed in Italy WAGE DETERMINATION
AND SEX SEGREGATION
IN EMPLOYMENT IN THE
EUROPEAN COMMUNITY
NETWORK OF EXPERTS
ON THE SITUATION OF WOMEN
IN THE LABOUR MARKET
JILL RUBERY AND COLETTE FAGAN
in collaboration with Damian Grimshaw
UMIST
March 1993
European Commission
Employment, Industrial Relations and Social Affairs
DG V/A/3 - Equal Opportunities Unit
Document Ref. : V/408/94-EN This document has been prepared for use within
the Commission. It does not necessarily represent
the Commission's official position. ACKNOWLEDGEMENTS.
This report is based upon the research carried out by the European Commission's
Network of Experts on the Situation of Women in the Labour Market. Most of the
information referred to in this report is derived from these expert reports. These
national reports in turn have been based on national data sources and national studies.
Most of the references in this text refer to the national reports for the network;
details of the national sources are only provided in the national reports. The authors
of the reports are:
D. Meulders and C. Hecq Belgium:
Denmark: R. Knudsen and L. Pedersen
Germany: F. Maier and S. Quack (in collaboration with A. Carl and B.
Strunk)
Greece: M. Cavouriaris and M. Karamessini
Spain: M-L. Molto
France: R. Silvera, A. Gauvin and C. Granie
F. Bettio and P. Villa Italy:
Ireland: U. Barry and A. Roche
Luxembourg: R.Plasman and F. Adant
Netherlands: J. Plantenga and S. Van velzen
Portugal: M. Lopes and H. Perista
United Kingdom: J. Rubery (in collaboration with J. Earnshaw and C. Fagan)
We are also grateful to the following people for assistance in the preparation of this
report: Damian Grimshaw who provided researche and co-authored chapter
4; Eloise Turner for the detailed work on the presentation of the report and for her
efficient administration of the project in general; Anna Nobre at Eurostat for
providing us with earnings data; Myriam Carr for translating the report into French
and Els Van Winckel of the Equal Opportunities Unit at the European Commission
for her help and support throughout the study. We would also like to acknowledge
the help and support provided by UMIST, in particular by the School of Management
and by UMIST Ventures, in the administration of this network. TABLE OF CONTENTS
SUMMARY I
INTRODUCTION 1
1. WOMEN, MINIMUM WAGE REGULATION AND LOW PAY 4
1.1 WOMEN AND LOW PAY 4
1.2 LOW PAY AND MINIMUM WAGE SYSTEMS 10
1.3 WHAT CRITERIA SHOULD BE USED TO EVALUATE SYSTEMS OF 13
MINIMUM WAGE PROTECTION?
1.3.1 Protection against low pay in the member states: coverage by 14
industry and organisation
1.3.2 How universal and effective is the coverage of minimum wage 19
systems in practice?
1.3.3 The value of the minimum wage 26
1.4 HOW MANY WORKERS AND HOW MANY WOMEN ARE AFFECTED 31
BY MINIMUM WAGE RATES?
1.5 WOMEN, MINIMUM WAGE SYSTEMS AND LOW PAY: CONCLUSIONS5
2. WOMEN'S PAY AND COLLECTIVE BARGAINING 38
2.1 THE COVERAGE OF COLLECTIVE BARGAINING SYSTEMS 40
2.1.1 Extension mechanisms 42
2.1.2 Labour force groups excluded from collective bargaining 46
2.2 EMPLOYMENT SEGREGATION AND VARIATIONS IN COLLECTIVE 51
BARGAINING BY OCCUPATION, FIRM AND INDUSTRY
2.2.1 Bargaining and occupational and skill differentials 5
2.2.2g and differentials by firm size6
2.2.3 Bargaining and sectoral and industrial differentials 60
2.2.4 Collective bargaining systems in specific sectors9 2.3 THE PUBLIC SECTOR · 85
2.3.1 Public sector pay systems 86
2.3.2 Pay determinations in three major functional areas: 95
education, health and telecommunications
2.3.3 Integration of the public sector pay system and implications8
for equal value and gender pay differentials
2.4 THE INSTITUTIONS OF COLLECTIVE BARGAINING AND WOMEN'S PAY: 99
SOME CONCLUSIONS
3. PAYMENT SYSTEMS AND EQUAL PAY FOR WORK OF 102
EQUAL VALUE
3.1 EQUAL VALUE AND INTER-ORGANISATIONAL COMPARISONS 103
3.2 JOB CLASSIFICATION AND JOB GRADING 107
3.2.1 The social and historical origins of job classification systems 108
3.2.2 Alternative systems of job classification 111
3.2.3 Changes in job grading andn8
3.2.4 Job grading and basic pay rates 123
3..3 PAYMENT SYSTEMS6
3.3.1 Seniority pay7
3.3.2 Piecework and production-related bonuses 132
3.3.3 Merit and performance-related pay4
3.3.4 Job and working-time related supplements and allowances 139
3.3.5 Family and marriage allowances 143
3.3.6 Fringe benefits
3.4 PROMOTION, PAY AND EQUAL VALUE7
3.5 SUMMARY AND CONCLUSION 151
4. EMPLOYMENT SEGREGATION AND EARNINGS 154
4.1 CHANGES IN THE GENDER PAY GAP FROM 1980 TO 1991
111 4.2 ATYPICAL WORKERS 161
4.3 SEX SEGREGATION AND INTER-INDUSTRY PAY DIFFERENTIALS 167
FOR SELECTED INDUSTRIES
4.4 THE GENDER PAY GAP WITHIN INDUSTRIES 174
4.5 COUNTRY DIFFERENCES IN INTER-INDUSTRY PAY STRUCTURES 178
4.6 EXPLANATIONS OF THE GENDER PAY GAP 185
5. RECENT TRENDS AND FUTURE DEVELOPMENTS IN THE 193
INSTITUTIONS OF WAGE DETERMINATION
5.1 TRENDS IN MINIMUM WAGE PROTECTION AND OTHER FORMS OF 194
PROTECTION FOR VULNERABLE WORKERS
5.2 TRENDS IN COLLECTIVE PAY DETERMINATION 198
5.3 TRENDS IN PAYMENT SYSTEMS 201
6. EQUAL PAY FOR WORK OF EQUAL VALUE: 206
POLICIES AND INITIATIVES
6.1 CLOSING THE GENDER PAY GAP BY TACKLING LOW PAY8
6.2G THE GENDER PAY GAP THROUGH EQUALITY INITIATIVES 210
6.2.1 Positive action 21
6.2.2 Equal rights to pay rates and additions for the same job 212
6.2.3 Equal pay for work of equal value3
6.2.4 The application of job evaluation as a basis for equal pay 214
6.3 GETTING EQUAL PAY FOR WORK OF EQUAL VALUE ONTO THE8
BARGAINING AGENDA
6.4 ABOLISHING THE GENDER PAY GAP: A COMMUNITY FRAMEWORK 227
FOR CHANGE
6.4.1 European Community commitments to equal pay and 229
equitable wages
6.4.2 Future EC policy and equal treatment 235
APPENDICES 24
REFERENCES 261
IV