Employers would be required to publish their BAME pay gap under plans to improve career progression for ethnic minority groups unveiled by Layla Moran MP. The Liberal Democrat leadership contender has written to the TUC, CBI and retail bosses calling on them to help create the new law.
She plans to base the new law on the existing mandatory requirement for employers with 250 or more employees to publish their gender pay gap.
Layla Moran MP is calling on the government to introduce BAME pay gap reporting. She wants to shine a light on race and ethnicity based inequality in the workplace so that it can be addressed.
In April 2018 the first mandatory Gender Pay Gap reporting took place – this saw all organisations with over 250 employees legally required to publish their gender pay gap data for April 2017.
Layla Moran wants the government to make sure that BAME pay gap reporting is placed on a statutory footing. Currently it is voluntary for businesses to offer this information but a PwC survey of 80 found that three-quarters lacked the data needed to analyse their ethnicity pay gap.
To help make this a reality she has asked the CBI, TUC and the British Retail Consortium to work with her to craft legislation and this happen.
Employees in the Black African, Caribbean or Black British, Other and White Other ethnic groups on average earned 5% to 10% less than their White British counterparts between 2012 and 2018. In 2018, on average, employees from the Bangladeshi ethnic group earned 20.2% less than White British employees.
The percentage difference in median hourly pay between people of a White ethnicity and all those who belong to an ethnic minority group is largest in London at 21.7%.
The case for change is clear - embracing a wide range of talent is not just a matter of equality, it represents a real source of competitive advantage. Race equality across the UK labour market would result in a £24 billion boost to the economy per year (1.3% of UK GDP).
Liberal Democrat MP Layla Moran said:
"We are all grappling to come to terms with the death of George Floyd and the racial injustice it exposed.
"We now need to seize this moment to tackle some of the root causes and build a fairer, more equal society. Injustice anywhere is a threat to justice everywhere.
“One of the biggest issues faced by BAME communities is economic inequality which then feeds into social injustice. Mandatory pay reporting would be a big step forwards – shining a light on injustices and making sure pay and working practices are improved.
“To make this happen I want to get bosses, employers and employees around the table and craft a law backed by all of them to bring about change. The time to act is now."