by Paula Määttä

I. The types of flexibility introduced

B. The principle of equal remuneration in the ILO

The principle of "equal remuneration for men and women workers for work of equal value" is an objective of the International Labour Office. It is set out in the Equal Remuneration Convention, 1951 (No. 100) and Recommendation (No. 90). The Convention has been ratified by 123 countries.

Article 1(a) of the Equal Remuneration Convention defines remuneration broadly, so as to cover the ordinary, basic or minimum wage or salary and any employment-related emoluments, whether in cash or in kind, and whether payable directly or indirectly. Thus, the Convention covers both direct and indirect components of remuneration which arise out of the employment relationship (ILO 1986, 9).

For the purposes of the Convention, the expression "equal remuneration for men and women workers for work of equal value" is specified in Article 1(b) as referring to rates of remuneration established without discrimination based on sex. Accordingly, the Convention is not concerned with differences in remuneration among workers of the same sex.

The Convention applies to all sectors of economic activity, both private and public. Article 2(1) of the Convention requires each Member to promote, and in so far as is consistent with methods in operation for determining rates of remuneration, ensure the application to all workers of the principle of equal remuneration for men and women workers for work of equal value. Article 2(2) provides that this principle may be applied by means of national laws or regulations, legally established or recognised machinery for wage determination, collective agreements, or a combination of these means. Article 3 of the Convention provides that where it will assist giving effect to the Convention, measures topromote objective apprisal of jobs on the basis of the work to be performed are to be taken. The methods to be used in such an appraisal may be decided upon by the authorities responsible for determining the rates of remuneration, or by the parties themselves where such rates are determined by collective agreements. Differential rates as determined by such objective appraisal between workers which correspond, without regard to sex, to differences in the work to be performed are not to be considered as violating the principle of equal remuneration for men and women workers for work of equal value. Article 4 of the Convention requires each Member to cooperate as appropriate with the employers and workers organizations concerned for the purpose of giving effect to the Convention.

The Equal Remuneration Recommendation, 1951 (No. 90) supplements the Equal Remuneration Convention. The aims of the Recommendation are to indicate certain procedures for the progressive application of the principles set out in the Convention, and in applying those principles, to draw attention to methods of application which have been found satisfactory in some countries. Accordingly, subject to Article 2 of the Convention, it is recommended that Members should apply the provisions of the Recommendation, and should report to the International Labour Office as requested by the Governing Body the measures taken to give effect to those provisions.

The Recommendation deals with three classes of employment respectively: those who work directly in the public sector; those whose remuneration is determined under public authority or whose work is carried out under public sector control; and workers in general. Paragraph 1 of the Recommendation states that all Members should take appropriate action after consultation with workers organisations, or where such organisations do not exist, directly with the workers concerned, to ensure the application of the equal remuneration principle to all employees of central government departments or agencies, and to encourage its application to employees of State, provincial or local Government departments or agencies, where these have jurisdiction over remuneration. Paragraph 2 states that in relation to all other occupations where rates of remuneration are subject to statutory regulation or public control, appropriate action should be taken by Members after consultation with the employers and workers organisations concerned to ensure the application of the equal remuneration principle as rapidly as possible. This provision is directed in particular to the establishment of minimum or other wage rates in industries or services where remuneration is determined under public authority; industries and undertakings operated under public ownership or control; and, where appropriate, work performed under the terms of public contracts. Paragraph 3 states that where appropriate, provision for the general application of the equal remuneration principle should be made by legal enactment, and that the competent public authority should take all necessary and appropriate measures to ensure that employers and workers are fully informed as to the relevant legal requirements and, where appropriate, advised on their application.

Where it is not feasible to implement immediately the equal remuneration principle in respect of the three classes of employment described above, Paragraph 4 provides that appropriate provision should be made as soon as possible for its progressive application by such measures as decreasing the differentials between rates of remuneration for men and women for work of equal value, and, where a system of increments is in force, providing equal increments for men and women performing work of equal value.

For facilitating the application of the equal remuneration principle, Paragraph 5 of the Recommendation states that each Member should, in agreement with the employersand workersorganisations concerned, establish or encourage the establishment of methods for objective appraisal (whether by job analysis or by other procedures) of the work to be performed, with a view to providing a classification of jobs without regard to sex. Paragraph 6 recommends that appropriate action should be taken to raise the productive efficiency of women workers. This may be achieved by such measures as ensuring equal facilities for vocational guidance or employment counselling, encouraging women to use such facilities, providing welfare and social services that meet the needs ofwomen workers, and promoting the equality of men and women workers in relation to access to occupations and posts.

Also relevant to the application of the equal remuneration principle are the ILO instruments dealing with discrimination, in particular the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), and the Discrimination (Employment and Occupation) Recommendation, 1958 (No. 111). These instruments came into force in 1960. The Convention and Recommendation deal with discrimination on the basis of race, colour, sex, religion, political opinion, national extraction or social origin with regard to opportunities or treatment in employment (Article 1(1)). Article 2 of the Convention states that each Member undertakes to declare and pursue a national policy designed to promote equality of opportunity and treatment in respect of employment with a view to eliminating discrimination. At the same time, Article 1(2) of the Convention deems any distinction, exclusion, or preference in respect of a particular job based on inherent requirements as not discriminatory. Paragraph 2(b)(iv) of the Discrimination (Employment and Occupation) Recommendation states in particular that part of each Members national policy for the prevention of employment discrimination is the principle that all persons should enjoy equality of opportunity and treatment in respect of remuneration for work of equal value.