The Principality Building Society introduced a market- and performance-related pay and grading structure following a comprehensive job evaluation exercise. This case study looks at how this was implemented
It has taken a decade for an equality-proofed pay and grading structure to be negotiated and implemented at Newcastle City Council, but both the employer and union are proud of it.
Following the creation of Unison in 1993 and the legacy of five different sets of terms and conditions, the union set about equality-proofing its pay structure for staff, and harmonising terms and conditions. This case study charts the obstacles that were overcome and details the new pay structure.
In an equal pay case brought by a female cleaner, an employment tribunal has rejected the employer's claim that its grading system justified a pay differential, saying it found no objective justification for the different grading.
In Nimz v Freie und Hansestadt Hamburg (7 February 1991) EOR38A, the European Court of Justice holds that where using service as a pay criterion has a disparate impact upon women, the employer must justify it by showing a relationship between the nature of the work performed and the experience gained by performing the work.
In McPherson v Rathgael Centre for Children and Young People and Northern Ireland Office (Training Schools Branch) (5 December 1990) EOR37A, the Northern Ireland Court of Appeal rules that it is not a defence to an equal pay claim for the employer to show that the reason the applicant is paid less than her comparator is due to a genuine error.
In Reed Packaging Ltd v Boozer and Everhurst (18.3.88) EOR21B, the EAT holds that the existence of separate pay structures for hourly-paid and staff employees amounted to a genuine material factor defence justifying unequal pay. The EAT also rules that where an employer makes out a defence under s.1(3) at a preliminary hearing, there is no need to refer the complaint to an independent expert.
In Clark and others v Bexley Health Authority and others (26.11.86) EOR12C, a London industrial tribunal holds that the health authorities had a material factor defence to any pay inequalities because they were bound to comply with the pay scales laid down by the Secretary of State under Regulations.
HR and legal information and guidance relating to grading structures.