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Equal pay policies: International review of selected developing and developed countries

by Paula Määttä

II. Australia

C. Measures for determining and promoting the pay equality

1. Permitted grounds for wage differentials

In relation to awards, a provision is not discriminatory merely because it provides for a junior rate of pay; if, in respect of particular employment, it discriminates on the basis of the inherent requirements of that employment; or if, in respect of employment as a member of the staff of an institution that is conducted in accordance with the teachings or beliefs of a particular religion or creed, it discriminates in good faith on the basis of those teachings or beliefs (s 143(1D).

2. Instruments used to promote equality

Appraisal of jobs and Equal Pay Unit

A number of measures have been introduced in Australia to ensure that methods are adopted to promote an objective appraisal of jobs on the basis of the work to be undertaken. Usually, appraisal of jobs and their comparison is based on non-analytical methods and considers only the value of different kinds of work. In 1991 the Government established a specialised unit within the Department of Industrial Relations to promote equal pay. The Equal Pay Unit (EPU) was the Governments authoritative agency on wages issues for low-paid workers and was to place major emphasis on helping to promote the appropriate valuation of womens skills in the wage-fixing system. Its role was to implement the Governments equal pay policy. The Equal Pay Unit advises, does research and writes reports on equal pay issues. Reports have been designed to promote the objective appraisal of jobs and to assist practitioners create gender-neutral job appraisal schemes. Employers may voluntarily develop their own job evaluation schemes or use well-known schemes such as the Hay system.

Affirmative action

The Affirmative Action (Equal Employment Opportunity for Women) Act 1986 (amended in 1992) requires employers (including private sector employers) with 100 or more employees); all institutions of higher education; trade unions, independent schools, community organisations and group training schemes with 100 or more employees or trainees/apprentices to develop programmes designed to eliminate sex discrimination in employment and to promote equal employment opportunity for women. Affirmative action plans must be drawn up and implemented in agreement with the workers. The legislation also requires employers to report annually on progress made in the implementation of their program to the Director of Affirmative Action. The Director of Affirmative Action advises and assists employers in the development and implementation of programmes. The Australian Affirmative Action Commission has the powr to initiate legal action for failure to comply with obligations under the Act. This Act adopts a proactive approach to the removal of structural barriers in the workplace that would affect womens opportunity to earn equal remuneration.

3. Scope of comparison

In 1972 the Australian Conciliation and Arbitration Commission stated that work value comparisons should be made between female and male classifications within the award under consideration. If such comparisons are not possible, for example where the work is performedexclusively by females, it may be necessary to take into account comparisons of work value between female classifications within the award or in different awards. In some cases comparisons with male classifications in other awards may be necessary. This suggestion has never been adopted in equal pay cases. Nor has there been any attempt to specify the proportion of one sex that is necessary for a classification to be regarded as either male-dominated or female-dominated. (Thornton 1993, 27, 34.)


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Updated by BC. Approved by MR. Last update: 10 August 2000.