Pay Equity Term Paper

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Pay Equity

As American business enters the 21st century the issue of unequal pay for equal work continues.

The course of attaining the objectives of just wages for all workers by eradicating the wage disparities between men and women workers is known as pay equity. It necessitates that the unequal jobs of comparatively same value to the employer is to be given the equal wages. Pay equity is considered to be a gender independent pay process that reduced wage inequity. (Policy Statement: Pay Equity) There exist considerable wage disparities between the employed men and women of America. Taking into consideration the educational and political progress of women the advocacy of the women to be in focus by a sexist society into the dominating female occupations seems to be absurd. Irrespective of the fact that more and more female are entering the top executive ranks in America they are to confront a considerable barrier: a wide wage disparity at the first sight in the Corporate America. (Edmonds, 1999)

1. Pay equity issues between men and women

Irrespective of the promulgation of Equal Pay Act ever since last four decades the wage disparities between men and women obstinately prevails. Women are still failing to earn equal pay for equal work only equal pay for comparable work. Such discrimination not only influences the spending capacity of women but also it costs their retirement security by entailing wide gulf between the social security and pensions. (Facts about Pay Equity) As per the study of 2004 conducted by the Institute for Women's Policy Research, on the basis of the U.S. Census Bureau and Bureau of Labor statistics, it has been brought out that woman employed full time only gets 76 cents in comparison to one dollar for a man in the same time. The real median income of women is observed to have reduced by more than half a million dollar i.e. $523,000 over the last four decades. Having a majority of 64 million women in the workforce the pay disparities have adversely affected many of the American families. (Pay Equity: American Association of university Women)

Families suffered from a loss of $200 billion in income per annum due to the wage disparities-which in an average is computed to be about $4,000 per family. Besides, wage disparities reduced the total earnings during the life time thereby decreasing the benefits of the women from Social Security. The wage disparities are not merely the consequence of the qualification or selection of women. As per a recent analysis conducted by the Government Accounting Office, the wage disparities perpetuates primarily as a result of enhanced educational achievement, increased strata of experiences in the workforce and reduced amount of time spared out of the workforce in rearing children. Irrespective of the fact that the number of the women presently acquiring baccalaureate and advanced degrees are estimated to be more than that of the men the median earning of a female college graduate was $17,600 less than those of their counterparts. (Pay Equity: American Association of university Women)

Taking into consideration additional work experience, the women acquires about 30 cents per hour for additional five years while that of white man earns additional $1.20 per hour. Women are engaged for more time in the workforce presently than earlier. About 61% of the women having children below the age of two years and about 78% of women having school-age children are seen to be employed. The time spared beyond the workforce is not sufficient for explaining the sustainable wage disparities that the women suffer from. (Pay Equity: American Association of university Women) The compilation of data by General Accounting Office from the Current Population Survey with regard to the ten industries that engage about 71% of U.S. women workers and 73% of the U.S. Women Managers. The disparities in pay between the full-time working women and men managers enhanced in between 1995 and 2000, in seven of the ten industries examined. (Facts about Pay Equity)

The wages of African-American women are only 65 cents in comparison to one dollar that of white men where as it is only 53 cents in case of Hispanic women. When the wages of the women are equal to that of the men working for the same hours and are having the same education, union status, are of equal age and reside in the same region of the nation then the family income per annum would be enhanced to $4,000 and the rate of poverty would reduce to 50%. The working families would increase their family income annually by $200 billion. The pay equity in female centered jobs would enhance the wages for females by about 18%. About fifty-five percent of all women employed in female-cantered jobs while only 8.5% of all men engaged in such employments. However, such men still gain about 20% more than women those work in female dominated jobs. (Facts about Pay Equity)

As per the data analysis in over 300 job classifications specified by the U.S. Department of Labor Statistics, women earn less in every employment categories for which adequate information is available. The year in which Equal Pay Act was in operation, in 1963 a full time working women were paid 59 cents on average to the dollar received by men, while in 2000 women were paid 73 cents for every dollar received by men. Alternatively, for the last 37 years the wage disparities has slightly been narrowed down by more than one third of a penny per annum. (Facts about Pay Equity) About two thirds of the women indicate that they entail half or more of their household income. More than fifty percent married women sacrifice half or more of the family income. Job segregation is regarded as the most significant concern, men and women tend to hold varied types of jobs. About two thirds of the white women and three-fourths of black and Hispanic women are engaged in sales, clerical, factory and service positions. Irrespective of the fact that these mostly necessitate skills and experience similar to jobs that men hold, men usually are paid more wages. (Pay Equity: It's the Law, but is it reality?)

Equal pay for equal work is considered to be a simple mater of justice for women. The pay discrimination presently influences the economic security of families and directly influences the retirement security as women look down the road. However, irrespective of the Equal Pay Act and many developments in the economic status of the women over the last 40 years, the pay discrimination still sustains and is the consequence of the limited applicability of the Equal Pay Act. It however does not succeed in ensuring equal pay for jobs that are analogous but not identical. It also does not succeed in filling up the pay discrimination based on race. It does not succeed in covering part-time or contingent workers and; it fails o allow groups of workers to file class action suits. Irrespective of the fact that the enforcement of the Equal Pay Act along with the other civil rights laws have assisted in narrowing the pay disparities, considerable differences remain which is necessitated to be addressed. (Pay Equity: American Association of university Women)

2. Pay equity organizations and websites

The National Committee on Pay Equity-NCPE is considered to be the prime resource on pay equity. It was established in 1979 and is seen as a combination of women and civil rights organizations; labor unions; religious, professional, legal and educational associations, commissions on women, state and local pay equity associations and individuals devoted to eliminate sex and race-based wage discrimination and to attain pay equity. The NCPE has applied a statement of Principles as its membership application for both voting and associate members. A voting member is considered to be a designated contract person of trade union, other workforce representative, women's or minority or civil rights organization that endorses the NCPE guidelines. Such members have voting authorizations and are therefore capable of becoming Board membership. An associate member is an organization or group that endorses the NCPE Principles and is eligible for full involvement in NCPE, however, do not have voting rights and eligibility for Board Membership. The website at / provides further information with regard to NCPE. (National committee on Pay equity)

The Pay Equity Commission consisted of two different and distinguished bodies; the Pay Equity Office-PEO and the Pay Equity Hearings Tribunal -PEHT. The Pay Equity Office -- PEO is liable for implementing and enforcing the Pay Equity Act. The PEO interrogates, mediates and resolves grievances within the jurisdiction of the Pay Equity Act. The PEO also endorses programs and services to assist the people becoming aware and comply with the Pay Equity Act. The Pay Equity Hearings Tribunal -PEHT is liable for adjudicating disputes that arise under the Pay Equity Act. The Pay Equity Hearings Tribunal - PEHT is liable for arbitrating conflicts that arise under the Pay Equity Act. Information about the Pay Equity Commission is available at…[continue]

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