Theresa May today pledged to expose the “injustice” of employers who pay black and Asian workers less than their white counterparts. In a new policy announcement in the Conservative manifesto, firms will for the first time be told to disclose how much they pay people of different races. “The fact that different ethnic groups are being paid less for doing the same jobs is an injustice which cannot be allowed in 21st-century Britain,” the Prime Minister said. The new rules on pay transparency will be part of a worker rights package that Downing Street hopes will convince millions of traditional Labour supporters to switch to the Conservatives, including working-class people and racial minorities. Trades Union Congress research suggests there is a 17 per cent pay gap for black and minority ethnic staff educated to A-level standard, and a 10 per cent gap for those with degrees. The Conservatives last month introduced a requirement for companies to report differences between pay to men and women. Under plans in the party’s manifesto, expected on Thursday, this will be extended to different ethnic groups. There will also be a new requirement to publish information on the pay gap at different grades of staff and their ages. The rules will apply to larger companies who will have to publish more data than ever before. British Chambers of Commerce director-general Adam Marshall said businesses would be worried at the prospect of “costly or bureaucratic new obligations, no matter how well-intentioned” while Mike Cherry, national chairman at the Federation of Small Businesses, said new employment regulations “must be backed up with proper support for smaller businesses”. Work and Pensions Secretary Damian Green denied the party had watered down its commitment to put workers on company boards. Companies would be able to have a workers’ advisory committee rather than direct board representation for employees under the Tories’ plans. “There are three options that companies can choose, either a direct representative or designated non-executive director, or a workers’ advisory committee,” he told BBC Radio 4, Mrs May, who ordered a racial equality audit into access to public services as one of her first acts on entering Downing Street, said rights and responsibilities should be equally shared. “My plan will deliver a fairer deal for all workers, by extending rights and protections, guaranteeing rises in the national living wage and delivering a strong and stable economy,” she said. Her “new deal for workers”, aimed to steal Labour clothes by offering protections for those in the “gig economy”, a statutory right to leave for those who need to care for a family member and a commitment to further increases in the living wage. But Labour said Mrs May was “taking working people for fools” while the GMB union members would “believe it when they see it”. The measures follow the BHS pension furore and worry about the spread of zero-hours contracts.
UK firms will be required to disclose their racial pay gaps for the first time, according to a commitment in the Conservative Party manifesto expected to be released on Thursday 18 May. The Trades Union Congress argues that a 10% pay gap currently exists for black and minority ethnic workers with degrees. This rises to a 17% pay gap for those educated to A-level standard. Companies will also be required to publish information about pay gaps at different grades and for different ages. Last month, the Conservatives announced that larger companies would need to disclose their gender pay gap.