Reward Management: Gender Pay Gap, Union Role and Case Analysis

This report critically analyzes the gender pay gap, a global issue impacting women's earnings, using a Glasgow case study where 6,000 female workers won an equal pay battle. It explores the effects of unequal pay on women and the local economy, highlighting the role of trade unions in advocating for fair compensation and improved working conditions. The report examines various perspectives on the causes of the gender pay gap, including educational differences, historical biases, and societal attitudes. It also discusses the legal implications of unequal pay under the Equality Act 2010 and the potential consequences for both employees and employers. Furthermore, the report offers recommendations for mitigating unfair practices and promoting gender equality in the workplace. Desklib offers this report as a valuable resource for students studying reward management and related topics.

Reward Management 1410207

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Reward Management 1410207
Abstract
This study is aimed at understanding the concept of gender pay gap which is a global
problem. The study progresses in the light of the case study which has shown the
victory for 6,000 female workers in Glasgow. The study finds also the impact of unequal
pay on the women and the local economy. Additionally, the study also identifies the role
of union system in resurrecting the social status of female workers. Moreover, the paper
recommends few solutions as well to mitigate the issue of unfair practice.

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Table of Contents
1. Introduction:...............................................................................................................................3
1.1 Background of the study:..................................................................................................4
2. Critical Analysis:........................................................................................................................5
2.1 Gender pay gap:.................................................................................................................5
2.2 Effects of unequal pay:......................................................................................................7
2.3 Role of trade unions in negotiating pay and conditions (including gender pay gap):
.....................................................................................................................................................9
3. Conclusion:..........................................................................................................................10
4. Recommendations:................................................................................................................11
References:..................................................................................................................................15

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1. Introduction:
Gender pay gap is a bitter truth for the women in the United States of America,
the United Kingdom and rest of the countries across the globe. This is a hard truth that
despite working hard for their respective employers, women are paid only a portion of
what men receive in numerous countries across the globe in particular in the United
Kingdom. The gap has been realized as a universal issue and does exist in a vast range
of occupational resources (Mandel and Semyonov 2014). The gender pay gap is
measurable in three different ways such as by hourly & weekly earnings and the annual
income. In all the three cases that have been talked about for calculating the gender
pay differences, researchers focus on median earnings in context to women versus men
(Mandel and Semyonov 2014). Discrimination can occur for various reasons that also
include difference in behaviour with employees based on the differences in their age,
sex, race, skills, and others (Mandel and Semyonov 2014).
This study is also based on the same issue and progresses in the light of the
given case study which is on the court victory that thousands of women had in Glasgow
for equal pay battle. The case study depicts and explores, in brief, a very tragic matter
of labor law which is largely being followed by employers in the countries across the
globe (Webber 2016). In the given case study, few important things like the victory that
the women had received, the matter of concern and the role of trade unions in fighting
for the affected women are being highlighted.

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The study is purposefully based on understanding the concept of gender pay gap
and its impact on the women. Additionally, the study also considers the role of trade
unions that it plays to negotiate the gender-based pay gap.
1.1 Background of the study:
The court victory that has been highlighted in the given case study does reveal
the few facts which are necessary to consider to progress with the topic of discussion in
concern. The court victory has favored a thousand of women who had suffered from
discrimination based injustice that also impacted their earnings. The court has held the
ring-fencing bonuses as discrimination. The council had actually implemented a pay
protection system that effectively safeguarded the bonus payments dedicated to the
red-circled staff. It actually benefitted them. The court in Glasgow had felt the system as
discriminatory.
The case study has also established the valuable supports from Unison which is
one of the trade unions. They have supported the 6,000 female workers who could have
lost their job on being felt exhausted due to the discriminatory system. The union has
made few claims of which some of the claims were dated back in 2006. The court has
instructed the HR departments to take extra precautions while designing the payment
protection offers. Equal pay was largely being highlighted as a matter of concern in
private organizations.

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2. Critical Analysis:
2.1 Gender pay gap:
The given case study has highlighted the few very important facts such as the
payment system. The pay system according to the given case study was discriminatory.
The study will now focus on identifying and understanding the concept of equal pay in
the light of useful articles. According to Davies, McNabb and Whitfield (2015), the
gender pay gap is not due to some challenging circumstances that women have to face
like reducing the work pressure to give sufficient cares to the child, birthing a child,
being in the pregnant situation or taking care of the other family members. This is
indeed because of the educational differences that cause the maximum destruction.
Women as according to Davies, McNabb and Whitfield (2015) have long struggled to be
in institution for higher degrees. This could be due to many reasons like the cultural
beliefs or possibly the discrimination. However, things are now getting changed. The
rate of participation of women in higher studies is now increasing as confirmed by the
UNESCO which has published the first World Atlas of Gender Equality in Education
(Guninetwork.org, 2018). The fact can also be understood from a theoretical
perspective such as the human capital model. The model states that every human
being has some form of human capital which is produced in them with the help of
various external resources like education, training programs and experience (Bailey et
al. 2013).

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In the light of the facts what the authors have pointed towards, it appears that women
are getting affected by not being highly qualified. Male employees, on the other hand,
are highly blessed with higher professional degrees.
The authors Chi and Li (2014) have argued the fact presented by the authors
Davies, McNabb and Whitfield (2015) by stating that gender-based pay gaps have its
root in the ancient history. As opined by the authors Chi and Li (2014), gender biases
still thrive today. To many employers, men’s labor is much more valuable than the
women’s. This according to the authors Chi and Li (2014) is an unconscious
assessment of work values. It favors the biases based on various gendered binaries like
rationality is with men while women are known for emotions, men are believed to be
stronger while women are weak, men are borne to be the leaders while women are
there to follow and many others.
Xiu and Gunderson (2014) have gone a different way than the authors McNabb
and Whitfield (2015) and Chi and Li (2014) by focusing much on the solution rather than
making debatable talks on the subject matter. The authors Xiu and Gunderson (2014)
have felt that to have a society free from discrimination, it is important that everyone in
the society eliminates the discriminatory elements from within the inside. This will help
to eliminate the evil thoughts from the society and will probably help to bring a much
fairer labor policy in countries across the globe in particular in the United Kingdom.
The views of the different authors have been depicted in this section which
commonly points towards few very important facts. The gender-based pay gap is
because of the competency skills that demand professionally skilled employees. It is

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assumed also that men are more competent than women in regards to professional
competency. Pay inequality can also be due to some historical facts that governs men
as a dominating character. According to the beliefs, women are emotional, lack the
leadership skills and are physically weak. Men, on the other hand, are physically
stronger, fuelled by the leadership skills and are rational.
2.2 Effects of unequal pay:
Unequal pay is prohibited under the Equality Act 2010 which states that women
and men should be equally paid. The law covers all kinds of contractual terms intending
that contractual terms of women are no less constructive than a man’s. Hence, pay
based discrimination may attract severe consequences if women have sufficient
understanding of how to utilize the law (Hepple 2014). As argued by the authors Bracha,
Gneezy and Loewenstein (2015), the effect of unequal pay can be severe. The author
has supported their views by pointing towards a fact that states women are a much
better leader than men. In the light of the fact presented by authors it means that in
significant cases, women can prove to be profitable for the organization as they are
comparatively much better leaders. The unequal pay in this context will mean an
uncompetitive view of such employers that have the same system of disregarding the
labour values of women. The authors Bracha, Gneezy and Loewenstein (2015) have
further added that such discrimination will also affect the country's economy as many
women may decide to end up with their jobs for the sake of different other reasons.
Such reasons may or may not be the causes behind the surrender if there has been an
equal pay system as believed by the authors Bracha, Gneezy and Loewenstein (2015).

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Conroy, Gupta, Shaw and Park (2014) have traced the existence of pay based
discrimination for women in ancient ages. In the various families across the globe, boys
are paid with more pocket money than girls. This is indeed a very important fact that
tells that discrimination starts at the very early age of life. Various family members as
according to Conroyet al. (2014) are grown with the mentalities that boys are highly
valuable than girls. It directly sends the message that the world society is up in favor of
the pay based inequality. In the light of the stated facts, it can be said that the gender-
based pay gap needs to be rectified in the different families across the globe. Moreover,
it may also affect the psychological status of women. They will then feel haunted by
such thoughts at the different stage further in moments when they will feel unjustified.
Carruthers and Wanamaker (2017) have advocated the views of Bracha, Gneezy
and Loewenstein (2015) with a fact that women are preferred for public sector rather
than the private sectors. This means they are not given the equal opportunity to move to
a higher management position in the private organization. Shin (2016) has supported
the views of Carruthers and Wanamaker (2017) and Bracha, Gneezy and Loewenstein
(2015) by calling the unfair act with the women as a complex combination. Shin (2016)
has validated the statement by stating confusion about what to consider- a fair pay or a
power act. According to Torre, Pelagatti and Solari (2015), the explained inequalities
can play a significant role in making up the mind against the unfair pay system. This
means that if societies are to make up their mind for eliminating the injustice element
from within the inside, this will definitely start up an era of change where fair policies will
be implemented irrespective of the gender.

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This is very much evident that gender-based pay gap will produce an adverse
impact on the female workers and also on the economy of the respective countries.
Such female workers may end of losing their job for the sake of various other unrelated
reasons. This will not only affect their lifestyle but will also hamper the local economy as
the country might then lose probable leaders who had left over unidentified. This will
also affect the total income of the family as the household incomes are bear with a
collective support of both the male and the female workers.
2.3 Role of trade unions in negotiating pay and conditions (including gender pay
gap):
According to Card, Cardoso and Kline (2015), unions can play a very vital role in
fighting for the affected female workers in countries across the globe. The case study
has highlighted towards a fact that 6,000 female workers are being affected by an
unequal pay policy due to the gender differences. The case was filed in the Glasgow
court and had thrown results in favor of the female workers. Nevertheless, the case
study has pointed towards Unison that is one of the unions in the country. Unison had
played an utmost role in taking the matter to the court and fight on behalf of the affected
female workers.
Conley (2014) has also supported the fact presented by Card, Cardoso and Kline
(2015) by stating that there are still lots of places where female workers are not
organized and have not yet considered joining a union. Conley (2014) has emphasized
the importance of joining a union for women. In the opinion of Conley (2014) women
can have better pay structure and to some extent, there payment can be justified if they

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join a union system. Unions can support such female workers by standing against the
injustice.
As opined by Pulignano, Meardi and Doerflinger (2015), there are differences in
approach in the different categories of female workers. Full-time workers who are aged
35 or over they are comparatively much keener than the younger workers to join the
union system. In addition to this, part-timers have less interest in joining the union
system. In the light of the stated facts, it can be said that an equal approach from the
various groups of female workers based on the age group and the work nature may
produce a different result in regards to fighting the gender pay gap. Every single group
of women should join the approachable unions. This will enhance their strengths and
will expectedly bring some necessary changes.
Guillaume (2015) has supported the views of Pulignano, Meardi and Doerflinger
(2015) by stating that a stronger union system will yield a much better result. Such a
system can be found in the different women groups move together to fight against the
unfair pay system. In such circumstances, respective unions will be able to stand
against the employers. Moreover, they will be in a position to negotiate on the demands.
Employers in such situation will have no other option than to go with the negotiation.
Hence, there will be the few changes in regard to the pay system.
3. Conclusion:
To conclude, this can be said the discrimination in pay due to gender
differences needs additional cares of the respective governments. As found in the given
case study which is on the court victory of 6,000 female workers in Glasgow, the role of

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respective government can be very effective. Such government will be able to produce
policies which will encourage the employers for a much fairer approach. In addition to
this, the role of union system is also very important. As mentioned in the case study,
Unison which is one of the union bodies has worked effectively for the affected female
workers in Glasgow. The case had actually reached to the Glasgow court after the
union system has put an extensive effort in pulling up the system in favor of the female
workers. There is indeed a need for such union systems that can fight on behalf of the
affected female workers.
Society can also play a very important role to reduce the unfair practices to a
maximum degree. This can happen in two ways. First of all, it is important that the social
world across the globe do not consider differences between the women and the men
based on colors, the social status and the traditional beliefs which only considers male
as the leaders. They are required to remove the evil things from within the inside.
Women at their early ages should also be given the equal preferences as men at their
early age receive. Families who are involved in practices to provide boys with higher
pocket money, they need to change up their mind and bring a balanced approach to
every activity which may produce discriminatory thoughts. Secondly, the affected female
workers need have the unity. The different groups of women that exist in the workplace
should have an equal frame of mind and are required to move against the pay-related
discrimination. There is a need to join the union systems in large numbers as the
system may play a very important role in negotiating with the employers.
4. Recommendations: