Women continue to earn an average 18 per cent less than men in the European Union, according to the European Economic and Social Committee.
In Malta, this average falls to under 10 per cent – the second lowest in Europe after Italy – a figure distorted by the island having the least women in employment in Europe. Having fewer females entering the workforce after childbirth than other countries narrows the pay gap.
Normally women entering the workforce after spells of absence earn less than their male counterparts. This lower-than-average pay gap reflects the small proportion of low-skilled and unskilled women in the workforce.
Pay gap grows with age, education and years of service: differences in pay are over 30 per cent in the 50-59 age group, and seven per cent for the under-30s. It is over 30 per cent for those with tertiary education and 13 per cent among those with lower level secondary education.
The progress made by women within education, research and enterprise is not reflected in their position on the labour market. The employment rate for women is lower than for men (55.7 per cent compared to 70 per cent) and much lower for women in the 55–64 years age group (31.7 per cent). Moreover, unemployment is higher for women than for men (9.7 per cent against 7.8 per cent).
The progress women have made – not least in important areas such as education and research – is not reflected in pay structures and income ratios. An important reason why women have lower incomes than men is women take career breaks to care for the children and the family. It is the woman who devotes disproportionately more time to looking after the children than men do.
Parental leave means shorter periods in work, less overall professional experience and fewer continuing education opportunities: The longer the absence from the labour market, the poorer the salary prospects. Women also bear the primary responsibility for looking after the elderly and other care-dependent people.
Women’s unfavourable labour market position and the resulting pay gap impact their pension rights. Consequently, pension systems should be changed to ensure that women who take career breaks for maternity or parental leave are not disadvantaged, and that pension systems guarantee equality between the sexes alongside the long-term objective of securing individual systems.
Men and women should share family responsibilities and parental responsibility must not entail any worsening of pension rights. Governments should ensure that any lost national insurance payments are credited for these home carers so that the pension entitlement is not lost for those years they are out of work.
The legal scope for positive discrimination measures should remain, and in some cases be extended, as there are still big differences between women and men in managerial positions.
In 2000, only 31 per cent of high-level appointments were taken up by women and by 2006 this had only increased by one percentage point to a total of 32 per cent.
Marks and Spencer chairman Sir Stuart Rose had sparked debate after claiming women never had it so good in the workplace, saying there was no reason why they should not make it to the top of any profession they choose. But has the ceiling really been shattered? There are various views on work, motherhood and the sacrifices women make to get on. Some women who made it say this was possible through flexible working hours and working from home and also with attachment parenting, meaning taking the baby to work.
Family issues are not just a woman’s issue but also that of the partner. A forward- thinking law should not just have a good maternity law but also allow fathers to take time off work as well.
Some women do get the chance to make it to board levels, but do not take that choice. They choose to go home and have children. By nature, women do not assert themselves in the same way that men do. They do not play as hard as men do in order to get those senior positions.
It is therefore important that all stakeholders should be involved in this effort and show they are willing to achieve real change. The European Union’s growth and employment strategy, which is anchored in the Lisbon Treaty, is an important instrument to increase labour market equality and to cut pay differentials between women and men.
Pay must be equalised in order to achieve the goals of the Lisbon Treaty, guarantee public welfare and secure global competitiveness. This is important for both men and women.
(This is a summary of a presentation made at the 9th Women’s Affairs Ministers’ Meeting in Barbados.)
Ms Azzopardi is president of Banking on Women, HSBC Bank Malta’s voluntary female association.