Employers join forces on a compromise approach on EU Pay Transparency

Ahead of tomorrow’s vote on a proposed Directive on Pay Transparency by the European Parliament EMPL and FEMM Committees, HOTREC and other employer associations issued a proposal of compromise.

In a joint statement published last week, employers welcomed the principle of equal pay for equal work or work of equal value. Nonetheless, while considering pay discrimination unacceptable, we fear that the Commission proposal does not address the root causes of the gender pay gap.

We, therefore, believe companies with less than 250 employees should be exempt from complying with reporting obligations or joint pay assessment (as stated in the Commission proposal). We also called to include a provision that leaves room for the national social partners to deviate from the directive through a collective agreement. 

The principle of equal work and equal work of equal value should be defined by objective criteria – including performance and productivity. Assessments should be based on comparable situations based on gender-neutrality.

Last but not least, to fight the gender pay gap, we would encourage women’s participation in the labour market, the setting up of facilities for the elderly and children with flexible schedules and an overall change of mindset.