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1 Equal Pay Statement April 2015 Also available in large print (16pt) and electronic format. Ask Student Services for details. Perth College is a registered Scottish charity, number SC

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3 Equal Pay Statement April 2015 Incorporating: Equal Pay Policy Gender Pay Gap Report Occupational Segregation Report Equal Pay Action Plan Update Equal Pay Action Plan Introduction This document sets out what Perth College UHI is doing to meet the requirements of the public sector equality duty with regard to equal pay, and the causes of the gender pay gap. Equal Pay Policy 1 Purpose Perth College UHI is committed to the principles of Equal Pay for all members of staff. The College aims to ensure that procedures are in place to determine pay and conditions of employment which do not discriminate unlawfully and are free from bias. The College understands the benefits of operating a fair pay system which is transparent and is based on objective criteria. We are committed to taking action to ensure that equal pay is in place for like work, work rated as equivalent, work of equal value; and that the College's gender pay gap is reduced. We believe that in eliminating any bias from pay systems, and addressing any occupational segregation concerns, we are promoting positive relations amongst staff, students and the wider community. The College also believes that practices such as flexible working and access to training and job opportunities contribute to the creation of a culture which values its staff and eliminates unlawful discrimination and advances equality of opportunity. 2 Scope The principle of equal pay applies to all employees of Perth College UHI and of its subsidiary, Air Service Training (Engineering) Limited. 3 Definitions 3.1 For the purposes of this document and in line with relevant legislation, pay is defined as: "The ordinary basic or minimum wage or salary and any other consideration, whether in cash or kind, which the worker receives directly or indirectly, in respect of his/her employment from his/her employer." Pay, therefore includes pensions, discretionary bonuses and sick pay as well as other benefits of monetary value. Approved By: Vice Principal Human Resources HR/081a/SB/TR 1 of 9 Perth College UHI

4 3.2 "Like work" is defined as work which is the same or broadly similar. This can be determined by a general consideration of the types of work involved and the skill and knowledge required to do them. Different job titles, job descriptions or contractual obligations do not necessarily rule out a like work claim. 3.3 "Work of equal value" is defined as work which is of broadly equal value when compared under headings such as effort, skill and decision making. 3.4 "Work rated as equivalent" is defined as work which has achieved the same or a similar number of points under a job evaluation scheme. 3.5 "Gender pay gap" is the difference between men's and women's average hourly earnings (excluding overtime). 3.6 "Occupational segregation" refers to the clustering of men and women into different types of work (horizontal segregation) and into different levels of work (vertical segregation). 3.7 "Line Manager" is defined as the Manager to whom the employee directly reports. 3.8 An "Equality Impact Assessment" of a policy, procedure or practice is a thorough and systematic analysis to determine whether it has a differential impact on a particular group. 4 Key Principles We believe that in eliminating gender, race or disability bias in our pay systems we are sending a positive message to our staff and customers. It makes good business sense to have a fair, transparent reward system and it helps us to control costs. We recognise that avoiding unfair discrimination will improve morale and enhance efficiency. 5 Equal Pay Objectives Our objectives are to: Eliminate any unfair, unjust or unlawful practices that impact on pay and; Take appropriate remedial action. 6 Responsibilities 6.1 The Vice Principal Human Resources and Communication is responsible for the implementation, operation and revision of this Policy. 6.2 It is the responsibility of all Managers within Perth College UHI and its subsidiary to ensure that employees are treated equitably. Approved By: Vice Principal Human Resources HR/081a/SB/TR 2 of 9 Perth College UHI

5 6.3 All Managers have a responsibility to ensure that they apply procedures appropriately in line with training and guidance. 6.4 Quality approval check of the policy is the responsibility of the Head of Quality who will arrange for the policy to be posted on the College website. 7 Linked Policies/Related Documents Equality Report and Mainstreaming Plan Mainstreaming Equality Report 2015 Equality and Diversity Policy Job Evaluation Review Procedure Annual Employee Information Relevant Legislation Equality Act 2010 Equal Pay Act 1975 Approved By: Vice Principal Human Resources HR/081a/SB/TR 3 of 9 Perth College UHI

6 Gender Pay Gap Report April 2015 Equal Pay Review In 2012, following an analytical job evaluation of all posts, the College developed a pay and grade structure which promoted pay equity (Northgate Arinso). The College's gender pay gap before the completion of the job evaluation exercise was 14.02%. In March 2013, following the job evaluation exercise, the College's gender pay gap was 12.21% as reported in the published Equal Pay Statement April The College committed to exploring the reasons for the reported gender pay gap and taking action to reduce the gap. Gender Pay Gap February 2015 The College became an accredited Living Wage Employer in 2014; and has agreed higher percentage cost of living increases for staff in the lowest grades in 2012/2013, 2013/2014, and 2014/2015. As a result the current minimum hourly rate paid by the College is 8.02, 0.17 (or over 2%) higher than the living wage of There are significantly more females than males in the lower grades within the College's grade and pay structure, and this vertical occupational segregation contributes to the College's gender pay gap. However, introducing the living wage and agreeing higher cost of living increases for lower graded staff, has resulted in the College's gender pay gap reducing to 10.91%, as demonstrated: Table 1: Calculation of Gender Pay Gap at Perth College UHI February 2015 Female Male Pay Gap % Staff (n) Average Hourly Rate % Perth College UHI's gender pay gap is below the average for Europe (16.4%), the UK (15.7%), and Scotland (11.5%). Approved By: Vice Principal Human Resources HR/081a/SB/TR 4 of 9 Perth College UHI

7 The table below details the gender pay gap for each of the grades for the College's grade and pay structure: Table 2: Gender Pay Gap by Grade February 2015 Grade Scale Point No of Females Average Female Hourly Rate No of Males Average Male Hourly Rate Formula % Pay Gap A B 2 to C 5 to D 9 to E 13 to F 17 to G 22 to H 26 to I 29 to J 31 to K 33 to * L 37 to M 42 to 46 ** N+ Range *The difference in Grade K is because of length of time in role. Numbers in grade stated as 0 for data protection purposes. **The difference in Grade L is because of length of time to progress through grade year on year after appointment. ***There are no gender pay gap issues for Grade M and above as each grade is occupied by one gender only The Equality and Human Rights Commission recommends that a gender pay gap of 5% or more requires further investigation. However, the College has an overall gender pay gap of 10.91% and the reasons for this require to be explored further. Close the Gap report that there are three main reasons for the gender pay gap: Discrimination in pay structures: Table 2 shows that there is little difference in pay between men and women doing work of equal value. A key reason for there being differences in pay between men and women could be individuals being appointed to different points on the pay scale. An analysis of the grade point to which new starts were appointed shows that: Approved By: Vice Principal Human Resources HR/081a/SB/TR 5 of 9 Perth College UHI

8 In 2013/2014: Grade A 10 females and 6 males at point 1 (one point grade) Grade B 6 females and 2 males at point 2 (bottom) Grade C 2 females at point 5 (bottom) Grade D 3 females and 3 males at point 9 (bottom) Grade E 1 female at point 13 (bottom) Grade F 2 females and 1 male at point 17 (bottom); 3 females and 1 male at point 19 (mid) Grade G no appointments Grade H 2 females and 4 males at point 26 (bottom); 4 females and 1 male at point 27 (second point); 4 females and 3 males at point 28 Grade I 3 females and 2 males at point 29 (bottom); 8 females and 4 males at point 30 Grade J 1 female and 1 male at point 32 (top point of 2 point scale) In 2014/2015 (to date): Grade A 13 females and 2 males at point 1 (one point grade) Grade B 3 females and 3 males at point 2 (bottom) Grade C 3 females at point 5 (bottom) and 1 male at point 6 (second point) Grade D 4 females at point 9 (bottom) and 1 female at point 10; no males appointed Grade E 6 females at point 13 (bottom); no males appointed Grade F 6 females and 1 male at point 17 (bottom); 6 female and 5 males at point 19 (mid); 2 females and 1 male at point 20; 1 female and 1 male at point 21 (top) Grade G 1 female and 1 male at point 22 (bottom) Grade H 7 females and 8 males at point 26 (bottom); 4 females and 1 male at point 27 (mid); 5 females and 4 males at point 28 (top) Grade I 2 females and 0 male at point 29 (bottom); 4 females and 6 males at point 30 (top point of 2 point scale) From the above analysis, there are no significant trends to suggest that females and males are placed at different points of the grade scale upon commencement of employment. The majority of staff start at the bottom of each grade and progress through annual increment. The College is therefore generally applying the salary placement criteria for pay grades. Lack of flexible working: the College has a flexible working procedure and has to date agreed all flexible working requests (though there has had to be negotiation on the detail to ensure the College's business needs are met.) In 2014, a BA Business and Management student conducted research into the College's occupational segregation and gender pay gap. The student surveyed staff and of the 120 staff (25%) who responded, 73% stated that they believed the College had flexible working practices (13% did not know; and 14% did not believe the College had flexible working practices). Of those who had requested flexible working, 82% stated they were granted flexible working. In the follow-up focus group, staff were positive Approved By: Vice Principal Human Resources HR/081a/SB/TR 6 of 9 Perth College UHI

9 about the College's flexible working practices. A review of flexible working arrangements was an action in the Gender Pay Action Plan The aforementioned research suggests that overall the College's approach to flexible working is meeting the needs of staff. Occupational Segregation: refers to the clustering of men and women into different types of work (horizontal segregation) and into different levels of work (vertical segregation). The bar chart below shows how men and women are clustered in the College's grading and pay structure: Occupational Segregation Bar Chart Gender Breakdown as a Percentage of Grade February 2015 The above chart shows that there continues to be significantly more females than males in the lower grades within the College's grade and pay structure. However, there has been a shift from 2013 in that there has been a rebalance of the number of female and male lecturers for point 30, the top of Grade I. In 2013 there were 25 more male than female lecturers in this grade and this has reduced to a difference of 4. An analysis of management grades shows that there is a good gender balance of males and females and that for the most senior College positions, the majority of post-holders are female. It is therefore women clustered in the lower graded jobs that contributes to the College's occupational segregation and gender pay gap. This position was recognised and reported on in the 2013 Equal Pay Statement. The aforementioned degree student investigated the College's occupational segregation, as this was an action in the 2013 Gender Pay Action Plan. The research conducted showed that: 95% of staff who responded to a survey believed that they had the same opportunity to progress in the workplace as someone of the opposing sex. 56% of respondents believed that occupational segregation was the main reason for the gender pay gap. Approved By: Vice Principal Human Resources HR/081a/SB/TR 7 of 9 Perth College UHI

10 85% believed that social attitudes played a part in the existence of occupational segregation. 92% of respondents believed that there were equal training and development opportunities for males and females. The College has encouraged staff in the lower grades to apply for higher graded posts, and introduced training programmes for staff to encourage the development of key skills for career advancement. The focus of the Gender Pay Action Plan will be the encouragement of lower graded staff to undertake training and development to up-skill them for higher graded job opportunities; the encouragement of lower graded post-holders to apply for internal career opportunities; and training for all staff on gender stereotyping and work. The College sector is likely to move to national collective bargaining from 2015/2016 and the College will no longer be able to award local pay increases to staff on lower grades in order to address the gender pay gap. Gender Pay Action Plan Update Action 1 Conduct a job evaluation exercise and implement the outcomes for AST manager and lecturer posts (support staff completed) Complete. Action 2 Review flexible working arrangements in the College and report results and recommendations to SMT Complete. A degree student surveyed staff and the majority of staff believed the College had flexible working practices. The Flexible Working Procedure was reviewed in line with changing legislation. Action 3 Investigate the reasons for occupational segregation in the College and report results and recommendations to SMT Complete. The degree student's research results were reviewed and actions are being taken forward in terms of skills development for staff and training and awareness. Action 4 Conduct annual review of salary placement in grades; and the gender pay gap by grade and for the College, in order to assess if gap has reduced, and publish findings Complete. Action 5 Provide equalities guidance/training to those involved in determining pay Partially Complete. The HR Department oversee grade placements and provide guidance to managers. Specific training for managers in this area will be included in recruitment and selection training to be carried out during Action 6 Respond to grievances on equal pay as a priority there were no equal pay grievances lodged. Action 7 Develop, implement and review a Job Evaluation Policy for future job evaluation activity Complete. Job Evaluation Review Procedure developed and implemented. Approved By: Vice Principal Human Resources HR/081a/SB/TR 8 of 9 Perth College UHI

11 Gender Pay Action Plan Ref Action Responsibility Timescale 1 Develop, implement and evaluate a skills and training programme for staff in lower grades to equip them with the skills for career/grade advancement. Vice Principal, HR and Communications February Develop, implement and evaluate equalities training for staff on gender, disability and race stereotyping and work. 3 Develop a reporting system for disability and race pay gaps in readiness for the 2017 Mainstreaming Report. 4 Conduct annual review of salary placement in grades; and the gender pay gap by grade and for the College, in order to assess if gender gap has reduced, and publish findings. 5 Respond to grievances on equal pay as a priority. More Information Equality and Diversity Adviser Senior HR Adviser Senior HR Adviser Vice Principal, HR and Communications February 2017 February 2016 February 2016 and February 2017 On-going If you would like further information or wish to provide comments and suggestions on our equality and diversity work, or wish to receive this information in an alternative format, please contact us using any of the methods listed below. Contact: Susan Bald, Vice Principal Human Resources Telephone: (Direct Line) Post: Susan Bald, Vice Principal Human Resources, Perth College UHI, Crieff Road, Perth, PH1 2NX Approved By: Vice Principal Human Resources HR/081a/SB/TR 9 of 9 Perth College UHI

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