Observation (CEACR) - adopted 2018, published 108th ILC session (2019)

Equal Remuneration Convention, 1951 (No. 100) - Germany (Ratification: 1956)

The Committee notes the observations of the German Confederation of Trade Unions (DGB) of 5 December 2016.

Article 2 of the Convention. Legislation. Wage transparency. The Committee notes with interest the adoption of the Transparency in Wage Structures Act on 30 June 2017, which introduces an individual entitlement for employees in establishments with more than 200 employees to obtain information on the median monthly gross salary of at least six employees of the other gender who perform the same work or work of equal value, as well as on the criteria and procedure used for determining the remuneration. It notes that “equal work” is defined as identical or similar activity, and that “work of equal value” will be deemed to be conducted by women and men if taking into consideration the totality of the factors, such as the type of work, the training requirements and the working conditions, they can be seen as being in a comparable situation. In addition, according to the Act, private sector employers with more than 500 employees shall regularly report about the measures taken to promote gender equality and create equal pay for women and men in their company. Such employers are also encouraged, but not obliged, to use internal company evaluation procedures to assess their remuneration systems as well as the way in which they are applied, on a regular basis, to determine compliance with the equal pay requirements. The Committee also notes that the DGB criticizes the introduction of both thresholds and calls for compulsory internal company evaluation procedures. The Committee requests the Government to provide information on the practical implementation of the Transparency in Wage Structures Act, including data on the level of compliance with the statutory reporting requirement on gender equality and equal pay at the company level, information on sanctions imposed in cases of non-compliance, information on employers’ exercise of their entitlements to information and any follow-up measures taken based on the disclosure of this information, as well as information on any actions taken to address gender wage gaps revealed, and the impact thereof. It also requests the Government to provide information on the number of undertakings of more than 200 employees and of more than 500 employees in the country and on the proportion of the workforce covered by these undertakings.

Assessment of the gender pay gap. The Committee notes the Government’s indication, in its report, that since 2002 the unadjusted wage differentials between men and women has remained virtually unchanged, as it was 21 per cent in 2017. It notes that the gender pay gap was 23 per cent in the private sector, against 9 per cent in the public sector, differentials being still substantially higher in the western part of Germany (23 per cent against 7 per cent in the new Länders). In 2016, pay differentials between women and men were still particularly wide in scientific and technical activities (31 per cent); financial and insurance services (28 per cent); as well as in information and communication (25 per cent) and manufacturing (25 per cent). The Committee notes the Government’s explanation that family-related career breaks have been identified as a particular cause of pay inequality and that, as a result, specific measures have been taken to better balance family responsibilities between men and women, including through the expansion of childcare services, the introduction of new family benefits (e.g. “Family Allowance Plus”), as well as through the implementation of several programmes, in collaboration with social partners, aimed at helping men and women return to work and promoting family-friendly working environments (e.g. “Back to Work Perspective” programme and “Success Factor Family” programme). The Government also indicates that, in order to fight against vertical segregation, a new Act on the Equal Participation of Women and Men in Leadership Positions in the Private and Public Sectors was adopted on 6 March 2015, with the objective of significantly increasing the proportion of women managers by introducing a mandatory 30 per cent gender quota, to be realized by 2016, for supervisory boards of more than 100 companies which are publicly listed and subject to parity co-determination (i.e. employees’ representation on their supervisory board). As of 2018, the proportion of women must be increased to 50 per cent. In addition, about 3,500 medium-sized companies are also required to set, by June 2017, their own targets for increasing the proportion of women on supervisory boards, executive boards and at the top management levels, which is considered by the DGB as being less successful. In accordance with the new legislation, the Federal Act on Gender Equality and the Federal Act on Appointment to Federal Bodies were revised to increase the proportion of women in leadership positions in the public sector. The Committee also notes that, in order to combat horizontal occupational segregation, the Government continued the Girls’ and Boys’ Days, introduced in 2011 to raise awareness on gender-stereotypical career choices, and that a new website was started in 2013 to give boys and girls opportunities to explore gender-related subjects (mytestingground 2.0). The Committee however notes with concern that, as highlighted by the DGB, the gender pay gap is still one of the highest in the European Union, being considerably higher than the average. It notes that, according to the most recent Structures of Earnings Survey, while three-quarters of the unadjusted gender pay gap can be attributed to structural differences, the remaining quarter cannot be explained by the characteristics relevant to the workplace. The Government states that when women have the same formal qualifications and otherwise identical qualities as men, the pay gap is still 7 per cent, which is a clear indication of latent discrimination against women in the labour market. The Committee further notes that the United Nations (UN) Committee on the Elimination of Discrimination Against Women (CEDAW), as well as the UN Committee on Economic, Social and Cultural Rights (CESCR) expressed concern at the fact that the prevailing gender pay gap both in the public and private sectors continues to have a negative impact on women’s career development and pension benefits owing to insufficient effective implementation of legislation on the principle of equal pay for work of equal value, as well as at the persistence of horizontal and vertical occupational segregation, the concentration of women in the lower-paying service sectors and precarious employment owing to their traditional role as caregivers for children and the underrepresentation of women in managerial positions in companies (E/C.12/DEU/CO/6, 12 October 2018, paragraph 38 and CEDAW/C/DEU/CO/7-8, 9 March 2017, paragraph 35). While welcoming the measures implemented by the Government to combat vertical and horizontal occupational gender segregation of the labour market as a root cause of pay inequality between men and women, the Committee hopes that the Government will strengthen its efforts to eliminate the substantial gender pay gap which has remained at a high level for more than 15 years, in order to give its full application to the principle of equal remuneration between women and men for work of equal value, enshrined in its national legislation. The Committee requests the Government to continue to provide information on the specific measures implemented to reduce the gender pay gap both in the public and private sectors, and to address its underlying causes, including by combating occupational gender segregation as well as stereotypes regarding the roles of women and men. It also requests the Government to continue to provide statistical information on the distribution of men and women in the different sectors of the economy and occupational levels and their respective levels of earnings.

The Committee is raising other matters in a request addressed directly to the Government.