Addressing the ethnicity pay gap is not just a matter of social justice; it is also an economic imperative.

Abdi Mohamed, Chair of GMB Race

In a society that prides itself on progress and equality, the persistence of pay gaps based on ethnicity and other protected characteristics is a sobering reminder of how far we still need to go to tackle stubborn and pernicious inequalities in the world of work. 

The current Tory government backtracked on enshrining the ethnicity pay gap into law earlier this month – despite their warm words and focus on employment being the best route to tackling poverty. Labour in power locally and regionally however is stepping up and showing leadership to fill the void left by this morally bankrupt government.

We at GMB Race in London region – the self-organised group for workers of colour – are determined to speak up and fight back to ensure the ethnicity pay gap stays on the political agenda at a local, regional and national level.

So what is the ethnicity pay gap? I’m referring to the disparity in earnings between different ethnic groups. Despite living in diverse Britain, individuals from ethnic minorities often face significant challenges when it comes to economic equality. Studies consistently show that ethnic minority individuals earn less than their white counterparts, even when factors such as education and experience are taken into account. This systemic discrimination undermines the principles of fairness and equal opportunity. It devalues the work of people of colour and reinforces wider society inequality.

Understanding what this looks like in reality can be difficult due to the lack of data. The Resolution Foundation found that Black, Asian and Minority Ethnic workers lose out on £3.2bn a year in wages compared to white workers. It found Pakistani and Bangladeshi male graduates earned an average £2.67 an hour (12%) less, while among female graduates, black women faced the biggest pay penalty, of £1.62 an hour (9%). Data from the Office of National Statistics (ONS) shows the ethnicity pay gap is not spread evenly across the UK, with London having the highest income inequality.

Reporting on the ethnicity pay gap is a vital first step to addressing pay disparities. It ensures an organisation recognises the issue, that they know what it looks like in their own organisations and reflects their commitment to right this wrong going forward. Gender pay gap reporting has brought the question of gender inequality in the workplace to the forefront. There is no good reason why we shouldn’t be doing the same for ethnicity.

When it comes to general reporting of the ethnicity pay gap, it is currently incredibly poor, recent figures show so far only 3% of employers with over 250 employees are voluntarily reporting their ethnicity pay gap.

We recently launched a campaign around pay, terms and conditions for ethnic minority workers across the city so we could collate the lived experience of the city’s diverse workforce.

The results of our conversation with city’s diverse workforce painted a worrying but sadly unsurprising picture. Some of the findings include the fact over half of workers believes they have been treated less favourably and that white colleagues were given “first priority” to “overtime and preferable hours”. The results also revealed that over a third of ethnic minority workers we spoke to felt they do not have equal opportunity for advancement compared to white co-workers.

Following our campaign launch, we have engaged with countless Councillors across GMB London (parts of London and East of England) and GMB Southern Region (Parts of London and the South-East of England) – it’s been an overwhelmingly positive response.  Labour-led councils have introduced policies and initiatives aimed at bridging the pay disparity and creating more inclusive work environments. By championing fair wages and actively working to eliminate discrimination, local and regional government demonstrate a commitment to creating a more equitable society from the ground up.

Early this month, our campaign motion passed in London city government through the Greater London Authority – Thanks to Marina Ahmad AM and Unmesh Desai AM for championing the GMB London motion.

I wish I could say this level of progress is taking place at a national level. Sadly and unsurprisingly, the Tory government reneged on its commitment to enshrine the ethnicity pay gap into law.

This decision sends a distressing message to ethnic minority communities across the country, signalling a lack of urgency in addressing this deep-rooted issue. By failing to establish legislation that would hold businesses accountable for pay disparities, the government missed an opportunity to create tangible change and ensure that companies take proactive steps towards equality.

The Conservative Party’s stance on the ethnicity pay gap raises serious concerns about their moral compass. The decision to backtrack on enshrining the pay gap into law undermines the principles of fairness and social justice. It exposes a lack of commitment to promoting equality and protecting the rights of all individuals, regardless of their ethnic background. By prioritising short-term political gains over long-term social progress, the Tory government has left a void that demands urgent attention and action.

Addressing the ethnicity pay gap is not just a matter of social justice; it is also an economic imperative. Numerous studies from organisations ranging from the Trades Union Congress (TUC), the Confederation of British Industry (CBI) and the Equality and Human Rights Commission (EHRC) have shown that diverse and inclusive workplaces benefit society as a whole and contribute to stronger economies. By harnessing the talents and perspectives of individuals from all backgrounds, businesses can drive innovation and enhance productivity. Failing to tackle the ethnicity pay gap perpetuates systemic inequality and denies society the full potential of its diverse workforce.

With a cost-of-living crisis hitting households hard, the loss of earnings faced by ethnic minority workers will push them further into work poverty. Reporting on the ethnicity pay gap is a vital first step to addressing pay disparities.

GMB London Region joins a growing coalition calling for mandatory ethnicity pay gap reporting – I encourage you all to get involved and play your part in the campaign.

— If you want to hear more about the campaign or want to get involved, feel free to drop me an email: Abdi.Mohamed@gmbactivist.org.uk

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