[UK] Next loses six-year equal pay claim

In the UK, the clothing retailer Next lost a six-year equal pay claim after a tribunal ruled that it should not have relied on market rates when determining employee pay, HR Magazine reports.

The tribunal found that the retailer paid warehouse workers, primarily men, at a higher rate than its shop workers; mostly women.

According to BBC News, representatives of Next made the argument that it did so because the market rates for warehouse workers were higher than for retail workers. However, the tribunal rejected this as a justification for such a pay difference.

The tribunal decision reportedly showed that benchmarking salaries against the market rate could be sex discrimination. Emma Satyamurti - joint head of employment and discrimination at Leigh Day, the firm representing Next shop workers - spoke to HR magazine following the decision.

Ms Satyamurti said, “The tribunal accepted that the statistics show that women predominate in the lower-paid retail roles, often due to their need for part-time working arrangements compatible with caring responsibilities, while the warehouse market has a predominantly male workforce. 

“The market rate will often reflect historic attitudes to ‘men’s’ and ‘women’s’ work, particularly in sectors where there is gender segregation between different workforces (retail and warehouse in the present case). 

“Next’s benchmarking of its hourly pay rates to these markets was therefore [indirect] sex discrimination.”

The ruling stated that the decision was not direct gender discrimination, however, employment judge Jones reportedly ruled that Next could have paid the shop workers more but did not do so due to financial reasons, which posed a "proportionate disadvantage to women".

“For market forces to be a trump card in this way would defeat the objective of the legislation; lower pay in particular sectors due to indirectly discriminatory practices could then be lawfully sustained in perpetuity,” the tribunal report stated.

According to The Guardian, Leigh Day is representing 112,000 store staff in similar equal pay claims against retailers Asda, Tesco, Sainsbury’s, Morrisons and Co-op.

Source: HR Magazine

(Quotes via original reporting) 

In the UK, the clothing retailer Next lost a six-year equal pay claim after a tribunal ruled that it should not have relied on market rates when determining employee pay, HR Magazine reports.

The tribunal found that the retailer paid warehouse workers, primarily men, at a higher rate than its shop workers; mostly women.

According to BBC News, representatives of Next made the argument that it did so because the market rates for warehouse workers were higher than for retail workers. However, the tribunal rejected this as a justification for such a pay difference.

The tribunal decision reportedly showed that benchmarking salaries against the market rate could be sex discrimination. Emma Satyamurti - joint head of employment and discrimination at Leigh Day, the firm representing Next shop workers - spoke to HR magazine following the decision.

Ms Satyamurti said, “The tribunal accepted that the statistics show that women predominate in the lower-paid retail roles, often due to their need for part-time working arrangements compatible with caring responsibilities, while the warehouse market has a predominantly male workforce. 

“The market rate will often reflect historic attitudes to ‘men’s’ and ‘women’s’ work, particularly in sectors where there is gender segregation between different workforces (retail and warehouse in the present case). 

“Next’s benchmarking of its hourly pay rates to these markets was therefore [indirect] sex discrimination.”

The ruling stated that the decision was not direct gender discrimination, however, employment judge Jones reportedly ruled that Next could have paid the shop workers more but did not do so due to financial reasons, which posed a "proportionate disadvantage to women".

“For market forces to be a trump card in this way would defeat the objective of the legislation; lower pay in particular sectors due to indirectly discriminatory practices could then be lawfully sustained in perpetuity,” the tribunal report stated.

According to The Guardian, Leigh Day is representing 112,000 store staff in similar equal pay claims against retailers Asda, Tesco, Sainsbury’s, Morrisons and Co-op.

Source: HR Magazine

(Quotes via original reporting)