John Faulkner (NSW, Australian Labor Party) Share this | Hansard source

Access to employment with fair and equitable remuneration has always been a cornerstone of social cohesion in Australia and the quality of life that Australians enjoy, but too many women have found difficulty in finding gainful employment and, even then, too many have been unable to access fair and equitable remuneration. It is the responsibility of the Commonwealth, working with state governments, unions and the business community, to increase women's participation in the workforce and close the pay gap between men and women.

Last year, the Workplace Gender Equality Agency published gender pay gap statistics. They show that the pay gap sits at an alarming 18 per cent—that is, $250 a week. Those statistics show that the average weekly ordinary earnings of a woman working full time are $1,186.90, or $250.50 per week less than men, who on average earn $1,437.40 per week. Unsurprisingly, the public sector fares better than the private sector, with a 12.9 per cent gap compared to a 20.8 per cent gap.

This contributes to the ACT's pay gap remaining the smallest nationally at just 12 per cent, with Western Australia a long way back at 25.8 per cent.

Industry statistics show it is the healthcare sector which has the most alarming gap, at 32.6 per cent. Public administration and accommodation and food services are both on eight per cent. Women aged 45 to 49 are the hardest hit, with a pay gap of almost 27 per cent.

Not only are women underpaid, when compared to their male counterparts, but women also remain significantly underrepresented in the workforce. Despite representing slightly over 50 per cent of the population and over 50 per cent of university enrolments, women represent just 45 per cent of the workforce. The recent statistics from the Workplace Gender Equality Agency show that only 65.3 per cent of women work, whereas 79.7 per cent of men are employed. Over the past decade, the male participation rate has remained steady at around 78 per cent to 79 per cent, while female participation rates have grown from 60.3 per cent in 2001 to 65.3 per cent today. This means that just about all the recent growth in labour force participation has been female.

There are many reasons why there are fewer women in the workforce, but discrimination on the basis of gender related to family caring responsibilities remains a key barrier to equal workplace participation. Many women, as we know, take time away from work to raise a family. The flow-on effect of this is that many women lose valuable time and experience from the workforce, leading to difficulties for many who wish to re-enter the workforce.

Helen Conway has pointed to the research by Catalyst that suggests that even when women do 'all the right things', they are unlikely to earn as much or advance as far as their male colleagues. Catalyst puts this down to 'entrenched sexism'. Sheryl Sandberd, Chief Operating Officer of Facebook, recently pointed to studies which show that there are psychological reasons which contribute to the lower rates of female workforce participation. These are twofold: first, women consistently underestimate their abilities, while men generally overestimate their own abilities; and, second, women attribute success to external factors, while men attribute success to their own abilities. But these psychological hurdles are not genetic or physiological; they are entrenched when society is male dominated. Other factors which a recent regulatory impact statement found contribute to the lower rate of female participation include the impact of sexual harassment, bias in recruitment and insufficient data.

The government's recent Workplace Gender Equality Act has meant some important new initiatives will increase participation rates and reduce the pay gap between men and women. Its centrepiece is a new and improved reporting system. Workplaces with more than 100 employees will make reports based on uniform indicators. Streamlining the indicators will make it easier for businesses to make comparisons with competitors and allies and easier to compare their results with past years and track their gender workplace statistics. These uniform indicators will also allow governments to have more accurate and usable statistics for future public policy decisions.

The reports will now need to be signed off by a CEO. This will bring gender workplace pay and participation issues to the top and encourage serious responses from CEOs. The uniform indicators are gender composition of the workforce; gender composition of governing bodies; equal remuneration; availability and utility of flexible working arrangements to support family or caring opportunities; consultation with employees on gender issues; and other matters as defined in subsequent legislation.

The process for lodging statistics has also changed: employees and employee organisations must be invited to contribute to the reports; the final reports must be made available to shareholders and employees; and misleading or late reporting or failure to comply with the act can lead to the naming and shaming of that employer by the minister, or even a declaration on ineligibility to compete for Commonwealth grants or tenders.

Creating fair and equitable access to employment with fair and equitable remuneration is a core responsibility of government. I applaud the government's recent initiatives to improve female participation in the workforce and reduce the gender pay gap, and I look forward to seeing the results of this important legislation, the Workplace Gender Equality Act, which has recently passed the parliament.