“There is a great deal of work to do"
London-based Newham Council has become the first to advocate for better reporting on the ethnicity pay gap.
Newham’s councillors passed a motion on March 18, 2024.
They have highlighted that more needs to be done to address this issue across the borough.
Newham Council’s motion follows a similar GMB motion passed by Assembly Members on July 6, 2023, at the Greater London Authority.
Recent studies conducted by GMB London revealed some alarming statistics.
It found that Black, Asian and Minority Ethnic workers in London’s public sector earn an average of 37% less than their white colleagues.
Employees from both the public and private sectors have reported favouritism, management bias and malpractice across companies and workplaces to their unions.
Research from the Resolution Foundation underscored the economic impact of this disparity.
Black, White and Minority Ethnic staff collectively lose £3.2 billion a year in wages compared to their white colleagues.
This loss in income has forced a disproportionate number of Black, Asian and Minority Ethnic people into poverty, especially amid the current economic challenges.
GMB and numerous councillors have been at the forefront of efforts to address this pay gap.
The ripple effects of this motion extend beyond the council chambers, with commitments made to collaborate with suppliers, contractors and partners to identify and implement best practices in tackling this pressing issue within the local economy.
Abdi Mohamed, Chair of GMB Race, GMB London’s self-organised group for Black, Asian and Minority Ethnic workers, said:
“There is a great deal of work to do on the link between race and pay, but by councils passing this motion they are making a significant step forward.
“When faced with tangible facts, we gain better policies that protect us all.
“Ethnicity pay gap reporting helps any employer look in the mirror and improve.”
“I’m pleased to say this motion passing means some of the largest employers in our local communities, councils, are now starting to lead by example.”
In January 2024, the Office for National Statistics (ONS) released its findings on the ethnicity pay gap in the UK.
Black, African, Caribbean or Black British workers have consistently earned less than their White counterparts since 2012.
Country of birth also played a significant part in pay differences.
Non-UK-born Black employees had the biggest pay gap in 2022.
The data suggested that they earned 12% less than UK-born White employees, with UK-born White employees earning an average of £14.26 per hour and non-UK-born Black employees earning £12.95 per hour.
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