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Equal Pay for Work of Equal Value
Equal Pay Standard, ÍST 85
Equal Pay Certification
Seminar About Equal Pay and
Family Leaves in Iceland
Helsinki, Finland
September 25, 2018
100 Years of Women‘s Suffrage in Iceland 1915-2015
12 Women in Parliament from 1923-1983
Women's Day Off on October 24th 1975
Background information – Gender Equality in Iceland, 2018
5
Iceland has topped
the Global Gender
Gap for the last
nine years.
Since 2000:
Legislation on
parental leave
ensuring equal
rights of mothers
and fathers.
79% of women
active in the
labour market.
34% of women
work part time.
June 2017:
Law requiring
certification of
equal pay
Gender quotas on
public committees
and companies
boards.
Women make up
two thirds of
university students.
Parliament:
Women 38%
(2017)
Local governments
44% (2018)
90% of Children
aged 1–5 in day
care. Municipalities
pay 85% of costs.
Unadjuested gender pay gap 28% (2016)
Adjusted pay gap 4,8% (2008-2016)
Labour market highly segregated by gender.
Inbalances in power in economic life.
Gender segregated society – chain reaction of imbalances
Responsibility for
the care of
children & the
older
Parental leave
Unpaid labor –
domestic work
Part-time work
Career
development
Pay gap
Pension gap
The Equal Pay Standard ÍST85
7
A Management Requirement Standard about wages
Clause in Gender
Equality Act, No.
10/2008
Agreement of
Labour and
Employers’
Confederations
IST
Technical Committee
and Working Group
Equal Pay
Standard
ÍST 85:2012
February 2008
Autumn 2008
October & November
2008
December 2012
Purpose
• To create a
system to ensure
that women and
men working for
the same
employer are paid
equal wages and
enjoy equal terms
of employment for
same jobs and
jobs of equal
value
• Serves for
elimination of any
kind of
discrimination
Modelled on
International
Management Standards
• Same structure
as ISO 14001 &
ISO 9001
• Has been
translated and
can be used
internationally
• Project
supervised by
Standard Iceland
Certification
• Adoption of the
standard has been
optional for companies
and institutions
• A legislation on equal
pay certification
requires certification
for larger companies
and institutions
• Those that wish to
receive certification
are required to follow a
formal procedure from
an accredited
certification office
stating that they
operate in accordance
with the demands set
in the standard
Systematic approach to
salary decisions
• Classification &
ranking of jobs
• Salary audits
• Formal
procedures & role
definitions related
to salary
decisions
The Equal Pay Standard – A Management Requirement Standard
The Equal Pay standard compared to the ISO 14001
Environmental management systems*
*Unofficial translationEqual Pay Standard ÍST 85:2012 Environmental Management Systems ISO 14001
4.2 Equal Pay Policy 4.2 Environmental Policy
4.3 Planning 4.3 Planning
4.3.1 Equal Pay criteria 4.3.1 Environmental elements
4.3.2 Legal & other requirements 4.3.2 Legal & other requirements
4.3.3 Goals & plans 4.3.3 Goals & plans
4.4.1 Roles, responsibilities & authority 4.4.1 Resources, roles, responsibilities & authority
4.4.2 Competency, training, awareness 4.4.2 Competency, training, awareness
4.4.3 Communication 4.4.3 Communication
4.4.4 Documentation 4.4.4 Documentation
4.4.5 Document management 4.4.5 Document management
4.5.1 Monitoring & measurement 4.5.1 Monitoring & measurement
4.5.2 Evaluation of compliance 4.5.2 Evaluation of compliance
4.5.3 Abnormalities, improvements & prevention 4.5.3 Abnormalities, improvements & prevention
4.5.4 Control of records 4.5.4 Control of records
4.5.5 Internal audit 4.5.5 Internal audit
4.6 Management review 4.6 Management review
Management
reviews
Improvements
Planning
Implementation &
maintenance
Checking
Equal Pay
policy
Assessment
• Standard?
• Salary decisions (tracking
of decisions,
documentation,
traceability)?
• Equal Pay policy?
• Job classification system?
• Testing of the job
classification system?
• Information about salaries?
• Recording of salary
decisions?
• Salary analysis
Implement, document,
maintain and introduce for
staff
• Equal Pay criteria
• Legal requirements &
other requirements
• Objective setting &
planning
• Roles,
responsibilites,
authorizations
• Qualification,
training &
awareness
• Communication
• Documentation
• Document
management
• Monitoring &
measuring
• Present results of
salary analysis
• Evaluation of
compliance
• Non-conformity,
corrective action &
prevention
• Records management
Implementation
*ÍST 85:2012: p. 6
CLASSIFICATION OF JOBS OF EQUAL VALUE
?
JOBSEMPLOYEES
TAKING INTO ACCOUNT ALL FORM OF REMUNERATION
A Pilot Project for the Implementation of the Equal Pay Standard
Pilot Project - Scope
November 2013
Launch of Pilot
project
11 gvt agencies
2 municipalities
7 private company
Working sessions
Company visits
Consulting
October 2014
Regulation about
certification of the
Equal Pay
Standard ÍST
85:2012
Definition of
requirements
needed for
certification bodies
to certify the
standard
November 2014
Collaboration
between all parties
for seminars in
order to facilitate
integration
Equal Pay Symbol
Autumn 2015
Seminars for
certification
bodies
Examination
Consulting
Autumn 2016
First audits
6 gvt agencies
1 private company
1 union
Website
Accreditation of
certification
bodies
GENDER-SEGREGATED LABOUR MARKET
The advantages and challenges of implementating the
standard
Advantages Challenges
Gives a new perspective to the salary system
• Draws out „hidden/unconscious“ salary
differences
Brings out facts about salary composition &
salary decisions
• A base for discussion
Increases the credibility of the salary system
• transparency
• tracability
Job claissification is useful in general HR
management
• Manpower analysis & planning
• Recruitment
• Job evolution schemes
• Performance appraisal
An extensive project that requires support of
top management
Tackle complex issues
• Ex-managers turned specialists
• Employees who „create“ their jobs
• Pre-conceived notions on the values given
to „female-type“ vs. „male-type“ jobs
18
Equal Pay symbol
Two individuals represented as equal
International Recognition
Iceland to enshrine equal pay for
women and men in law
» Legislation will be first in world to require
private companies and government
agencies to prove pay is fair or face fines
Once more, Iceland has shown it is the
best place in the world to be female
» My country has just taken a huge step
forward in legally enforcing equal pay
for men and women. When will the UK
dare to follow suit?
'Equality won't happen by itself': how
Iceland got tough on gender pay gap
» Despite its image as a paradise of
fairness, women earn less than men.
Now Iceland has become the first
country in the world to enforce equal
pay
21
The Equal Pay Standard – a skill calculator?
Legislation on Equal Pay Certification, approved by the Icelandic
Parliament June 2017
23
Legislation on Equal Pay Certification
» Enforces current legislation which prohibits gender based pay
discrimination.
» Obligation for companies with 25+ employees to have their salary
systems certificated by an accretidation office
» The law took effect 1. January this year
» Aims to introduce an obligatory equal pay certification in stages over
a period of three years
 Companies will be required to have their certification renewed
every third year
 The Centre for Gender Equality will monitor, supervise and
award employers with the Equal Pay Symbol
 In cases of failure to comply with the law the Centre will
supervise employers to rectify the situation, otherwise, it has the
permission to incur per diem fines
24
Why make it a legal requirement?
We have not fixed the gender pay gap!
Legislation on equal
pay dating 1961!
International
Conventions (ILO) and
treaties (CEDAW)
Being ranked in first
place in international
comparisons regarding
gender equality
Despite
Equality – yes, please!
Thank you for your attention!
Rósa G. Erlingsdóttir
rosa.erlingsdottir@vel.is
26

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Equal Pay for Work of Equal Value

  • 1. Equal Pay for Work of Equal Value Equal Pay Standard, ÍST 85 Equal Pay Certification Seminar About Equal Pay and Family Leaves in Iceland Helsinki, Finland September 25, 2018
  • 2. 100 Years of Women‘s Suffrage in Iceland 1915-2015
  • 3. 12 Women in Parliament from 1923-1983
  • 4. Women's Day Off on October 24th 1975
  • 5. Background information – Gender Equality in Iceland, 2018 5 Iceland has topped the Global Gender Gap for the last nine years. Since 2000: Legislation on parental leave ensuring equal rights of mothers and fathers. 79% of women active in the labour market. 34% of women work part time. June 2017: Law requiring certification of equal pay Gender quotas on public committees and companies boards. Women make up two thirds of university students. Parliament: Women 38% (2017) Local governments 44% (2018) 90% of Children aged 1–5 in day care. Municipalities pay 85% of costs. Unadjuested gender pay gap 28% (2016) Adjusted pay gap 4,8% (2008-2016) Labour market highly segregated by gender. Inbalances in power in economic life.
  • 6. Gender segregated society – chain reaction of imbalances Responsibility for the care of children & the older Parental leave Unpaid labor – domestic work Part-time work Career development Pay gap Pension gap
  • 7. The Equal Pay Standard ÍST85 7
  • 8. A Management Requirement Standard about wages Clause in Gender Equality Act, No. 10/2008 Agreement of Labour and Employers’ Confederations IST Technical Committee and Working Group Equal Pay Standard ÍST 85:2012 February 2008 Autumn 2008 October & November 2008 December 2012
  • 9. Purpose • To create a system to ensure that women and men working for the same employer are paid equal wages and enjoy equal terms of employment for same jobs and jobs of equal value • Serves for elimination of any kind of discrimination Modelled on International Management Standards • Same structure as ISO 14001 & ISO 9001 • Has been translated and can be used internationally • Project supervised by Standard Iceland Certification • Adoption of the standard has been optional for companies and institutions • A legislation on equal pay certification requires certification for larger companies and institutions • Those that wish to receive certification are required to follow a formal procedure from an accredited certification office stating that they operate in accordance with the demands set in the standard Systematic approach to salary decisions • Classification & ranking of jobs • Salary audits • Formal procedures & role definitions related to salary decisions The Equal Pay Standard – A Management Requirement Standard
  • 10. The Equal Pay standard compared to the ISO 14001 Environmental management systems* *Unofficial translationEqual Pay Standard ÍST 85:2012 Environmental Management Systems ISO 14001 4.2 Equal Pay Policy 4.2 Environmental Policy 4.3 Planning 4.3 Planning 4.3.1 Equal Pay criteria 4.3.1 Environmental elements 4.3.2 Legal & other requirements 4.3.2 Legal & other requirements 4.3.3 Goals & plans 4.3.3 Goals & plans 4.4.1 Roles, responsibilities & authority 4.4.1 Resources, roles, responsibilities & authority 4.4.2 Competency, training, awareness 4.4.2 Competency, training, awareness 4.4.3 Communication 4.4.3 Communication 4.4.4 Documentation 4.4.4 Documentation 4.4.5 Document management 4.4.5 Document management 4.5.1 Monitoring & measurement 4.5.1 Monitoring & measurement 4.5.2 Evaluation of compliance 4.5.2 Evaluation of compliance 4.5.3 Abnormalities, improvements & prevention 4.5.3 Abnormalities, improvements & prevention 4.5.4 Control of records 4.5.4 Control of records 4.5.5 Internal audit 4.5.5 Internal audit 4.6 Management review 4.6 Management review
  • 11. Management reviews Improvements Planning Implementation & maintenance Checking Equal Pay policy Assessment • Standard? • Salary decisions (tracking of decisions, documentation, traceability)? • Equal Pay policy? • Job classification system? • Testing of the job classification system? • Information about salaries? • Recording of salary decisions? • Salary analysis Implement, document, maintain and introduce for staff • Equal Pay criteria • Legal requirements & other requirements • Objective setting & planning • Roles, responsibilites, authorizations • Qualification, training & awareness • Communication • Documentation • Document management • Monitoring & measuring • Present results of salary analysis • Evaluation of compliance • Non-conformity, corrective action & prevention • Records management Implementation *ÍST 85:2012: p. 6
  • 12. CLASSIFICATION OF JOBS OF EQUAL VALUE ? JOBSEMPLOYEES
  • 13. TAKING INTO ACCOUNT ALL FORM OF REMUNERATION
  • 14. A Pilot Project for the Implementation of the Equal Pay Standard
  • 15. Pilot Project - Scope November 2013 Launch of Pilot project 11 gvt agencies 2 municipalities 7 private company Working sessions Company visits Consulting October 2014 Regulation about certification of the Equal Pay Standard ÍST 85:2012 Definition of requirements needed for certification bodies to certify the standard November 2014 Collaboration between all parties for seminars in order to facilitate integration Equal Pay Symbol Autumn 2015 Seminars for certification bodies Examination Consulting Autumn 2016 First audits 6 gvt agencies 1 private company 1 union Website Accreditation of certification bodies
  • 17. The advantages and challenges of implementating the standard Advantages Challenges Gives a new perspective to the salary system • Draws out „hidden/unconscious“ salary differences Brings out facts about salary composition & salary decisions • A base for discussion Increases the credibility of the salary system • transparency • tracability Job claissification is useful in general HR management • Manpower analysis & planning • Recruitment • Job evolution schemes • Performance appraisal An extensive project that requires support of top management Tackle complex issues • Ex-managers turned specialists • Employees who „create“ their jobs • Pre-conceived notions on the values given to „female-type“ vs. „male-type“ jobs
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  • 21. International Recognition Iceland to enshrine equal pay for women and men in law » Legislation will be first in world to require private companies and government agencies to prove pay is fair or face fines Once more, Iceland has shown it is the best place in the world to be female » My country has just taken a huge step forward in legally enforcing equal pay for men and women. When will the UK dare to follow suit? 'Equality won't happen by itself': how Iceland got tough on gender pay gap » Despite its image as a paradise of fairness, women earn less than men. Now Iceland has become the first country in the world to enforce equal pay 21
  • 22. The Equal Pay Standard – a skill calculator?
  • 23. Legislation on Equal Pay Certification, approved by the Icelandic Parliament June 2017 23
  • 24. Legislation on Equal Pay Certification » Enforces current legislation which prohibits gender based pay discrimination. » Obligation for companies with 25+ employees to have their salary systems certificated by an accretidation office » The law took effect 1. January this year » Aims to introduce an obligatory equal pay certification in stages over a period of three years  Companies will be required to have their certification renewed every third year  The Centre for Gender Equality will monitor, supervise and award employers with the Equal Pay Symbol  In cases of failure to comply with the law the Centre will supervise employers to rectify the situation, otherwise, it has the permission to incur per diem fines 24
  • 25. Why make it a legal requirement? We have not fixed the gender pay gap! Legislation on equal pay dating 1961! International Conventions (ILO) and treaties (CEDAW) Being ranked in first place in international comparisons regarding gender equality Despite
  • 26. Equality – yes, please! Thank you for your attention! Rósa G. Erlingsdóttir rosa.erlingsdottir@vel.is 26