Government to introduce gender audits to improve equality

Australian businesswomen have welcomed the Government’s proposal to force businesses with over 100 employees to report on how they are providing women with equal pay and flexible work practices.

Minister for the status of women Kate Ellis said in a speech at the National Press Club yesterday the Government would introduce legislation that would mandate businesses report on how many women they have employed.

Ellis also said the Government would make sure those reports include details on their employment conditions, and warned it will be conducting spot checks to ensure businesses are complying with the new rules.

Yolanda Vega, chief executive of the Australian Women Chamber of Commerce and Industry, says the proposals are welcome and will go a long way in ensuring businesses are compliant with gender equality expectations.

However, Vega says there needs to be harsh fines for those businesses that don’t provide the Government with any reports, and also says the new legislation should apply to all businesses – not just those with over 100 employees.

“I think the reporting is necessary, and I don’t think it’s going to incur any extra costs on businesses,” she says.

“Those businesses with over 100 employees are actually the minority. The AWCCI will be working towards ensuring all businesses are looked at.”

Vega says businesses deemed non-compliant should be fined appropriately.

Ellis yesterday confirmed businesses that fail to report will be subject to punishment.

“Businesses who do not comply with the Act will be ineligible to receive Government funded grants or access industry assistance. Government trade with noncompliant businesses will not just be discouraged – it will be the law.”

But Vega says businesses already have HR departments, so it shouldn’t be hard to “count how many males and females they have on their staff”.

“Once we have that data, I think we can look at the successes and failures of each, and then determine what needs to be done. But without that data we can’t move forward.”

The Australian Council of Trade Unions has also welcomed the proposal.

The Equal Opportunity in the Workplace Agency, which will be renamed into the Workplace Gender Equality Agency, will be given $11.2 million over the next four years to help carry out the new tasks.

While the Government says businesses were required to report on workplace equity plans, they will “now report on tangible outcomes about how women and men are faring in the workplace”.

Businesses will need to report on pay equity, and the Equal Opportunity in the Workplace Agency will be given new powers to ensure companies are complying with the legislation.

“CEOs and employee representatives will be required to sign off on reports. Businesses will also be required to provide these reports to employees and shareholders,” Ellis said in a statement.

Businesses will use a new IT system to report about their businesses online, and mobile support will also be offered to give advice, work plans and resources.

The first reports will be due in 2013.

However, the proposals have not been welcomed by all. Australian Industry Group has said while it supports gender equality, it believes the new system will be a burden for businesses and goes too far.

“The Government is proposing to go much further than the existing reporting requirements while the Government procurement guidelines will be of concern to industry. It is essential that a heavy handed approach is not taken.”

“Before proceeding to draft legislation, the Government needs to discuss its proposals in detail with industry to ensure that they are workable.”

The opposition has also attacked the proposal, with Bronwyn Bishop telling The Australian the policy is “the sort of thing you would expect from a totalitarian regime”.