Media Release
Tuesday, 24 November 2009
Industry with biggest wage gap pay equity needs quick action
The Finance Sector Union, representing workers in the industry with the yawning pay gap between
men and women, today welcomed a Parliamentary report into the issue.
And while there were positive steps in the report, the union said it will depend on the Government
regularly using the powers the report suggests is receives. Without regular audits of companies’ pay
equity, the FSU said its industry could suffer an even wider pay gap.
The pay gap in the finance sector is 28 per cent, with women on average earning just 72.3 per cent of
men’s earnings. Over the last five years, the gap has widened from 23 per cent. The finance sector’s
gap is 10 points larger than the overall workforce.
“We welcome moves to ensure women and men are paid more equitably,” said Rod Masson, the
FSU’s Acting National Secretary. “One of Australia’s most profitable industries shouldn’t be paying
women 28 per cent less than men. That clearly speaks to pay equity audits needing more vigour.”
Mr Masson said the large gap in the finance sector is in part due to a growing reliance on sales-based
remuneration. This largely secretive process rewards workers for selling debt products like credit
cards.
But with women workers concentrated in more service-oriented positions in branches or call centres,
men often fill more lucrative positions with higher sales, especially mortgages.
“It’s a perverse twist that the people who help Australians with their real financial needs are often paid
less than the people pushing high-debt products people often didn’t request,” said Mr. Masson. “But
the people who help customers the most are paid the least.”
The sector’s heavy reliance on this pay system makes objective comparison difficult because salary
levels are highly secretive. Sue Kenna, an Industrial Officer with the FSU, said she hopes new
federal powers can improve things.
“We’re encouraged that the Government could order employers to conduct annual pay reviews, and
hope it does regularly,” Ms Kenna said. “We also hope these look at total remuneration, not just base
salary. In today’s finance sector, base salaries play an increasingly smaller part of total pay.”
The FSU called on the Government to mandate pay audits as a part of diversity plans to be submitted
to the new Fair Work Australia Pay Equity Unit.
“There are a range of issues impacting on pay outcomes. But experience shows that finance sector
employers must look at pay outcomes in a structured and transparent way using pay audits if the
sector wants to lose the dubious honour of having the biggest pay gap,” said Ms Kenna.
“It’s unbelievable that in 2009, women in the finance sector make 28 per cent less than men,” said Mr
Masson. “We’ve had more than enough talk about equity. If the Government is committed to giving
this position some teeth, it will be a welcome step towards valuing women’s work equally.”
For more information:
Jamey Heath, media, 0432.828.005
James Bennett, FSU, 0410.142.435
NEWS 
