Pay equity in organizations and workplaces

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 http://www.pay-equity.org / 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 http://www.gov.on.ca/lab/pec/index_pec.html (Pay Equity Commission)

The right of the workers to be liberated from inequality in their wages is safeguarded under several federal laws incorporating: the Equal Pay Act of 1963, Title VII of the Civil Rights Act of 1964, Age Discrimination in Employment Act of 1967 and Title 1 of the American Disabilities Act of 1990 that has been enforced by the U.S. Equal employment Opportunity Commission -- EEOC. To assist employees and employers become aware of their liberties and liabilities under such laws in respect of wage inequalities, the Commission has generated a fact sheet about wage discrimination. A more complete debate of compensation discrimination is available in two sections of the new compliance Manual of the Commission which are The Compliance Manual Section on Compensation Discrimination and Compliance Manual Section on Employee Benefits. EEOC is ensuring a rigorous enforcement of the equal pay laws. The Commission has compiled charge statistics generating the number of charges filed and resolved alleging compensation as a concern. The commission has also narrated some their recent pay equity successes in litigation and the administrative process. Detailed materials are available at http://naacp.monster.com/articles/eeoc / (U.S. Equal Employment Opportunity Commission Resources)

The Department of labor encourages 'equality in payment Pay, equality in economic opportunity and Just treatment of all the working Americans and their families'. (Employment Standards Administration: Office of Federal Contract Compliance Programs- Equal Pay Quick Facts) The DOL has a multi-faceted approach that: reinforces civil rights enforcement, enhances public education and understanding; and constructs strategic partnerships to increase the efforts of the Department to foster equal pay and equal employment opportunity in work places of America. The DOL is liable to implement laws that forbid pay disparities in employment. The laws also necessitate that Federal Contractors take energetic steps to confirm that all Americans have scope for engagement inclusive of women and minorities, individuals with disabilities, and some veterans. Such laws assist in banning pay discrimination by necessitating contractors to perform self-audits, that may bring to evidence alternatively acknowledged pay disparities. In consonance with the Pay Initiatives, DOL is enhancing its scope and technical assistance to federal contractors on the matter of equal pay and helps employers to search out qualified employees through its partnership efforts and the new nationwide network of One-Stop Career Centers. (Employment Standards Administration: Office of Federal Contract Compliance Programs- Equal Pay Quick Facts)

The Equal Pay Initiative also incorporates concentration on assisting women to attain and retain employment in non-traditional jobs. The DOL functions as a resource for employed women -- hearing to their workplace problems, assisting them with the Administration and Congress, and confirming that employed women have the tools they necessitate to succeed in present day labor market. The employers and workers search out a plethora of information on equal pay concerns, economic security, child and elder care, and balancing work and family in the Internet Web Site of the Department. The DOL also safeguards the integrity of pensions, health plans, and other employee perks for more than 150 million people. The DOL has established a public education campaign to confirm that women have information to ensure sufficient funds for their retirement. DOL is concentrating on pension related concessions in its press notifications and revised pay fact sheets. It is advised to browse the Website of the DOL for more information at: http://www.dol.gov/dol for further information. (Employment Standards Administration: Office of Federal Contract Compliance Programs- Equal Pay Quick Facts)

3. Efforts of women's organizations on wage discrimination

The National Federation of Business and Professional Women's- BPW's Clubs was established in July 1919. Over the years, three major concerns restructured the legislative agenda of the BPW. They are eradication of the sex discrimination in workplace, the confirmation of the principle of equal pay, and the necessity for a complete equal rights amendment. BPW functioned to ban legislations and directives depriving the married women of the jobs. In 1930 BPW strived hard and succeed in enactment of Acts culminating and regulating the legal practice of workplace preference for unmarried persons and in the case of the married persons, preference for male members. In 1963 the 'Status of Women' Commission was established in U.S.. The prominent role that BPW played especially in securing the course of the Equal Pay Act has been acknowledged by President Kennedy by presenting his own pen to the National President of BPW while assenting to the Act. The workplace equity concerns inclusive of sexual harassment, the glass ceiling, health care reform, and dependent care, enhancement in the minimum wage, lifetime economic security and pay equity persistently constituted the targeted concerns of the BPW. BPW is persistently being branded as the prime organization at the base level dealing with the wage disparities. (Maine Federation of Business & Professional Women)

The American Association of the University of Women-AAUW has been striving hard since long to culminate the wage discrimination. The AAUW has been a catalyst for change ever since it's first meeting in 1881. Presently, the AAUW has more than 100000 members, with 1300 branches and 500 college and University associates. The AAUW ensures a more promising future and entails a strengthened voice for women and girls, a voice considered to have not been capable of being ignored. The legislative agenda of AAUW by 1922 warranted a reclassification of the U.S. Civil Service and for a repeal of salary restrictions in the Women's Bureau. AAUW backed a bill introduced by Republicans, Edith Green and Edith Rogers necessitating equal pay for work of analogous value necessitating equal skills' in 1955. Congress passed the Equal Pay Act - PL 88-38, a reformulation of the 1955 bill, in 1963. AAUW backed the legislation to encourage pay equity in the 109th Congress that would incorporate developments to the Equal Pay Act like those incorporated in the Pay check Fairness Act -- S.79/HR. 1688 from the time of the 108th Congress. (Pay Equity: American Association of university Women)

Next, 'The National Organization for Women' -- NOW is considered to the largest organization in the sphere of female activists in the United States. The NOW has 500,000 contributing members and 550 chapters spreading all over 50 states and the District of Columbia. The objective of NOW has been to strive for ensuring equality for all women since its inception in 1966. NOW functions to eradicate disparities and aggravation in the workplace and all other sectors of the society, wage disparities against women culminate all sorts of violence against women, abolish racism, sexism and homophobia; and encourage equality and justice in out society. NOW has contributed a considerably towards ensuring wage equity for women. (About NOW) Another organization 'Wage' was established to combat gender bias and attain gender equity in the education, hiring, retention, promotion and compensation of women in the academic community within the University of California and other academic organizations. (Wage: We Advocate Gender Equity) Further another organization 'Women Work' is an apparent and vocal advocate for enhancing minimum wage, achieving fair employment benefits, and confirming that training programs are available for women who are entering or re-entering the paid employment sector. (Advocating for the economic security of women and families through policies, programs and partnerships)

Next the 'Equal Rights Advocates' -ERA became the first legal advocacy group for women on the West Coast. It is located in San Francisco and has established a clinical program that blended the classroom education with practical experience functioning on real-life employment discrimination instances. As a diverse legal organization they function to see to it that women, of all racial and ethnic backgrounds are provided an opportunity to achieve their enhanced potential. ERA applies multiple approaches like 'public education, a free advice and counseling service, legislative advocacy, and influences litigation to encourage equality of opportunity'. (Women's Orgs: Equal Rights Advocates) ERA is functioning to deal with wage, hour and other violations confronting welfare recipients transiting from welfare to work. (Women's Orgs: Equal Rights Advocates)

4. World War II and influx of women in workforce

The prevalence of wage disparity is apparent in U.S. As a result of women and minorities entered the paid workforce at first. However, its prevalence was not perceived until the large entry of women seeking jobs during World War II. (Maine Federation of Business & Professional Women) The Wartime economy spread full employment and in doing so, attained what the New Deal programs failed to perform. (Khalid, 2004) America necessitated workers and supplies. Moreover, the employers focused on the women for labor. They solicited unmarried and married women for work as is done during World War I. However, public opinion still was antagonistic towards the working of married women. The press and government initiated severe publication propaganda to bring variations in this opinion. The federal government opined the women that victory could not be attained without their entry into the workforce. Working was taken to mean to be a good citizen; a working wife thus was regarded as a devoted nationalistic person.

The Magazine Bureau was established during 1942 by the government. The Bureau published Magazine War Guide, a guide that directs the magazines to cover the type of the theme stories they should cover monthly to assist the war propaganda machinery. The theme was 'Women at Work' during 1943. The slogan included in this respect was 'The More Women at Work the Sooner We Win.' Magazines published the stories with a view to glorify and encourage the placement of women into untraditional jobs where workers were necessitated. The ideology behind this is that when smaller, unexciting jobs were represented to be attractive and genuine more women essentially would enter the workforce. The media produced Rosie the Riveter, a mythical figure to promote women into the workforce. Rosie was represented as a patriotic woman, a hero for all American women. (Khalid, 2004)

The publication efforts successfully worked in this respect. About more than six million women entered the workforce during the war the majority of which were married women. (Khalid, 2004) In 1940, prior to the war, only 36% of the women workers were observed to be married. After the war about half of the women workers were found married by 1945. The middle class ban against a working wife had been withdrawn. In 1940, about 8 million Americans were found to be without jobs. By 1941, however, unemployment was quite absent. However, in reality, there were labor deficiencies in some industries. In consequence to this, more and more women engaged into the workforce. Women were able to capture jobs in industry that had once been earmarked for men, and 'Rosie the Riveter' emerged to be a popular American logo. (World War II: The Impact at Home)

The emergence of World War II generated a crucial necessity for vast enhancements in the number of women in the paid employment. The made it essential at least temporarily to reverse the relative promotion of tow functions of women, a reversal that emphasized the common imperceptible involvement of women in the paid employment. The women succeeded in achieving social significance and visibility that enabled her to struggle against the exploitation of lower wages and unhealthy conditions. The working woman not only has become visible but has gained supremacy over her housewife equivalents. Initially the trend was of a general reluctance to permit women into new fields of employment at all. However, as the war progressed it became apparent that if the country was to thrive with utilization of its resources to the fullest extent possible women are required to take over the jobs of men to liberate men for warrior duty. Such a visualization solicited strong counters from both the sides of the industrial fence. Male labors would not tolerate the allowance of cheap labor into their areas of employment; and employers, irrespective of the fact of employment of women in any level were totally opposed to paying increased wages. (Beaton, 1982)