Gender equality is one of the founding principles of the European Union. This principle dates back to 1957 when the principle of ‘equal pay for equal work’ was first established in the Treaty of Rome. A number of Directives were adopted along the years to ascertain equal treatment between men and women in employment and occupation. In 2006, following cases brought to the European Court of Justice, the Council revised the Directive adopted in 1975 to update EU legislation on the principle of equal pay for men and women accordingly (Directive 2006/54/EC).

On December 9, 2013, the European Commission adopted a report that assessed equal pay practices and provisions taken by the Member States to adhere to such practices. The report claimed that the main challenge for all Member States in dealing with the gender pay gap issues (the average difference between women and men’s hourly earnings across the EU) is the practical application of equal pay rules and the lack of legal action brought by women to national courts.

The report confirms that women in Europe have to work, on average, an extra 59 days to match the pay of their male counterparts. The gender pay gap has barely moved in recent years and still stands at an average of 16.4%, ranging from 2.5% in Slovenia to 30% in Estonia. On a positive note, Malta has one of the lowest rates in the gender pay gap at 6.1%. Through these figures, the European Commission established this year’s European Equal Pay Day to be marked on February 28, for the second year in a row. The EU-wide event marks the date in the current calendar year from which women really begin to be paid for their work when compared to men.

In a press release detailing findings in this report, Commission Vice-President Viviane Reding said, “With laws guaranteeing equal pay for equal work, equality in the workplace and minimum rights to maternity leave, gender equality is a European achievement. But there is still a way to go to full gender equality. The pay gap is still large and it is not budging. To make things worse: much of the change actually resulted from a decline in men’s earnings rather than an increase for women. The principle of equal pay for equal work is written in the EU Treaties since 1957. It is high time that it becomes a reality in the workplace as well."

The European Commission, as the Guardian of the Treaties, has ensured that Member States have correctly transposed EU equal treatment regulations, launching infringement cases against 23 Member States regarding the way a number of EU gender equality laws were transposed.

However, this report confirms that the effective application of the equal pay principle is hindered by the lack of transparency in pay systems, the lack of clear benchmarks on pay equality, and by a lack of clear information for workers that suffer inequality. Increased wage transparency could improve the situation of individual victims of pay discrimination who would be able to compare themselves more easily to workers of the other sex.

The latest figures show stagnation after a slight positive downward trend from an average of 17% or higher in recent years. A continuous decreasing trend can be found in Denmark, the Czech Republic, Austria, the Netherlands and Cyprus. Other countries, like Poland and Lithuania have unfortunately reversed their decreasing trend in 2012. In some countries like Hungary, Portugal, Estonia, Bulgaria, Ireland and Spain, the gender pay gap has increased in recent years. The report also claims that, in general, Malta has performed well as recent statistics prove that a significant positive reduction between male and female employees’ pay on the island of more than 3%.

The declining trend in the pay gap can be explained by several factors, such as a rising share of higher educated female workers or the greater impact of the economic downturn on some male-dominated sectors, such as construction or engineering. The change is therefore not solely due to improvements in pay and working conditions for women.

Besides monitoring the correct implementation of EU legislation, the Commission has continued to take action on all fronts to tackle the pay gap, including: the ‘Equality Pays Off Initiative’ during 2012 and 2013, which supported employers in tackling the gender pay gap with the organisation of workshops and training; annual Country Specific Recommendations issued in the framework of the European Semester drawing the attention of Member States to the need to address the pay gap; European Equal Pay Days; exchange of best practices; and financing of initiatives by the Member States.

Neil Portelli

Executive, EU Policy and Legislation - MEUSAC