I make something of a prediction. One that is obviously true, also one that everyone is going to ignore:
EMPLOYERS AND THE ETHNIC PAY GAP
Sir, Further to your report “Employers must reveal ethnic pay gap of staff” (Oct 12), Sir John Parker’s independent review into the ethnic diversity of UK boards found that just 1 per cent of the directors of our top companies are black Britons. The leadership of our professions and government looks little better. Not only are we ignoring the potential of many of our people, the face that we show the world is lamentably redolent of a bygone era for which many of our hoped-for post-Brexit markets in Asia, Africa and the Americas feel no nostalgia.
The government’s proposal for ethnic pay reporting stands a good chance of illuminating this waste of talent and of nudging organisations, both private and public, in the right direction. But it is vital that such reporting is mandatory, otherwise the prime minister’s words will amount to nothing more than a pointless wish list. Worse, it would be a travesty if companies that voluntarily published their data were to find themselves pilloried while other, less scrupulous organisations skulked in the shadows.
Transparency works, but only if everyone is required to be equally open.
Trevor Phillips
Chairman, Equality and Human Rights Commission, 2006–12
Sir, Theresa May’s idea that all employers should publish their ethnic pay gap is going to be expensive and misleading. Expensive because such statistics cost to collect and collate, misleading because the age structure of the population differs by formally defined race. From the 2011 census, the whole population median age was 39, that of the white population 41, Asian, black and other, 30, 30 and 29 respectively, and mixed 18. Pay rises with age, as promotions to better-paid positions are earned through experience.
Populations with higher median ages have higher median wages therefore. No one will pay attention to this simple truth when the figures are announced — thus misleading us all. Given the age structure of the varied populations, ethnic minorities should have lower median pay than whites. This won’t be the reaction to the finding of an ethnic pay gap, though, will it?
Tim Worstall
Senior fellow, Adam Smith Institute
And a decade really is quite a long time in a career and pay structure, isn’t it?
Also, while the gender pay gap looked at two different sorts of people (‘men’ and ‘women’), there are apparently 16 categories of ethnicity recognised by whichever godforsaken government department decides these things.
So there’s a good chance that even an organisation of 250 employees might only have 1 from one of those categories.
So when the figures are published, people will know exactly what that person is earning.
Also, I despair. This is the sort of shit Labour do. The Tories doing this won’t make a single Lefty like them more and will just alienate people like me.
Also, let’s hope there are some premier league football teams employing 250+ people. Their figures will be a laugh.
The only way shite like this will EVER be stopped is by people refusing to do it and throwing out any fucknuts jobsworth they send to threaten you.
When Plod arrives then …….. Oh they will try to throw the book etc–in the endlessly nauseating phrase–but millions in TR-style subscriptions for lawyers and a gathering certainty that at some point their victims will start to be “removed “from their “custody”.
As some character said–the only limit to what they will try is what you will put up with.
Also note the arrogance exudes from an ill-smelling bitch who is on her knees begging her EU masters at a snap of their fingers. Contrast the attitude the slag shows to her masters with the tin god mannerst she shows to the plebs she thinks she is Satrap over.
Excellent letter, Tim. Concise and hard-hitting.
It’s been mentioned before, but classical liberals should never ever disclose their ethnicity ( or anything else not defined by chromosomes ) on forms. The option ‘not saying’ is always available. Use it.
Bongo–NEVER use that “I prefer not to say…”. crap.
Add your own little box with “Mind your own business” as the option and tick that.
A sfory I’ve gleaned from inside info.
HMRC have an ‘increments’ pay structureb your pay in grade imcreases with time. Except it doesn’t; the pay squeeze means those increments don’t come and newer, younger colleagues are stuck forever earning less than their older colleagues. Those newer, younger colleagues are statistically more likely to be women. “Gender pay gap. Discrimination” screams the unuion, ARC, and rushes off to court to have tbis grave injistice overturned. “Stop wasting my time” says the judge. Funnily enough, so do a large number of male members, wbo resign in protest. Faced with falling membership the union conducts a ‘listening’ exercise. Except that turns in to a ‘telliing the stupid men what misogynists they are’ exercise.
The figures for the (large) taxi firm that operates in this area will be interesting. From experience it’s about 99% BME. Will they be pilloried for their severe lack of diversity and forced to discriminate towards caucasians in their future employment programs?
… Will they f*ck!
If the company is wise they should supplement their main statement with a breakdown by age cohort. At least this way you could show you weren’t discriminating in an particular age band.
Only works for large companies though. In a small company the knowledge of someone’s ethnic group and age band would remove a lot of privacy. And even in a medium sized company, random variation within each agree band may give the impression of some kind of discrimination in some bands, maybe even fairly large, even if it isn’t statistically significant. Hopefully in a larger company that doesn’t discriminate the results by age band should be fairly consistent. Particularly if services like catering or cleaning, that tend in London at least to be largely staffed by fairly recent migrants on low wages, have been outsourced so don’t show up on the figures.
Theresa May’s idea that all employers should publish their ethnic pay gap
Smdh. And we’re supposed to be afraid of Jeremy Corbyn getting into office because…?
The figures for the (large) taxi firm that operates in this area will be interesting. From experience it’s about 99% BME. Will they be pilloried for their severe lack of diversity and forced to discriminate towards caucasians in their future employment programs?
Maybe if they’re all arrested for “grooming”?
I keed. They’ll be out in 2 years.
Next they’ll be demanding an audit of the ability pay gap. Only kidding.
As if potential customers in China, Japan, India etc. are really concerned that their suppliers are ethnically diverse.
@Pat
Those guys couldn’t give an airborne copulation about our diversity. The only real danger they’re in is they might die laughing as we destroy ourselves. I shall be sending a missive to my MP, I doubt it will make a difference but they must know there is some pushback.
Bongo – I always tick the ‘Other” box and add Green Manalishi. It’s what I identify as and I defy anyone to prove otherwise.
Coming soon will be the sexuality pay gap. We’ll all be required to divulge our sexuality. It has a certain inscrutableness about it doesn’t it.
Ethnicity? Mainly human….
Worstall – What you write is true, as far as it goes. But even if you adjusted for all the factors you mentioned, there would still be pay gaps, because differences between groups of humans exist.
The only way to eliminate pay gaps is for a central authority to determine everyone’s pay. Which is perhaps the point of the whole exercise.
Pat,
“As if potential customers in China, Japan, India etc. are really concerned that their suppliers are ethnically diverse.”
Indeed, but they will keep half an eye it and wonder how much it will cost them and whether they should start looking for new suppliers.
Ian,
Responding to a public sector tender some time ago, I was asked to give %age ethnicity of our workforce. I stuck my head around into the dev area and did a quick count.
The next question was about the sexual orientation of our shareholders. I wrote back that I could see no reason for us holding that information and, even if we held it, no justification for disclosing it. I was aware of the sexual orientation of a number of my colleagues but had no idea whether or not they were shareholders (yes, I know I could have consulted the register.)
That annual incremental payrise thing applies to many public sector employers, not just HMRC, and especially applies in the NHS which means it’s not just age that matters, its length of service too. Many long service employees will be at top of their grade band even if they are still junior, which will look to the ignorant like pay
and discrimination and will especially affect recent employees.
@Obligato A friend of mine works as a manager in a technical department in the NHS. You would have fallen asleep several hours before he would have finished his explanation of the many and devious ways in which the senior management conspire to stop people being promoted to the next grade.
Re: Jerry C
“The only way to eliminate pay gaps is for a central authority to determine everyone’s pay. Which is perhaps the point of the whole exercise.”
Of course. Equality of outcomes requires all powerful political commissars. Which is the ambition of these equality campaigners.
That and sending undesirables to the gulags,
Next they’ll be demanding an audit of the ability pay gap. Only kidding.
Well, I’m told it’s already basically impossible to fire someone in the UK for being incompetent. Can anyone confirm this?
That being the case, why shouldn’t the incompetent be paid as much as those that can do their job?
In fact, why shouldn’t they be able to sue if they don’t get promoted as fast?
@Tim W,
Were you eavesdropping when I was discussing this yesterday over a coffee?
Your letter is a summary of what I said.
How do these idiots decide which characteristics have to be monitored? I mean, are there enough 3ft six, blonde haired people in top jobs? And ageism – why are 10 year olds disproportionately represented amongst the judiciary and in Parliament itself? Why are so few of the top surgeons and administrators in the NHS 85 year old cripples? Are blue-eyed people from Oxford properly represented?
There will *never* be an analysis of the ability pay gap because that would involve admitting that ability can affect pay and that is anathema to these idiots.