The Workplace Gender Equality Agency (WGEA) has released an updated Employer Gender Pay Gaps report covering 7,800 employers and 1,700 groups.
The gender pay gap is defined by the agency as “the difference between the average or median remuneration of men and the average or median remuneration of women, expressed as a percentage of men’s remuneration.” This differs from equal pay for the same or similar roles.
“(We focus) on the total remuneration gender pay gaps that include payments above base salary such as superannuation, performance bonuses, overtime and allowances, as this gives a more accurate representation of the real differences in earnings between men and women,” WGEA said.
The agency started by illustrating the general pay situation in the nation, which is evidently unequal. WGEA reported that on average, for every dollar a man earns, a woman earns 78 cents.
This drives the entire gap regardless of industry and sets a precedent for calculating pay.
WGEA also highlighted that employers in male-dominated industries, including the mining sector, are more likely to pay male workers more.
According to the report, “4 out of 5 employers in men-dominated industries have a gender pay gap in favour of men.” Across 248 mining employers, 92 percent of the total average remuneration gender pay gap favours men.
Employee ratio and roles
WGEA’s analysis considered several factors affecting the disparity. Among these is the ratio of male to female workers, which is evident in the mining sector.
The report stated that women make up 22 percent of the mining employee population, but this isn’t spread evenly across pay quartiles. In the upper and upper middle pay quartiles, women are just 16 and 15 percent of workers respectively. According to the WGEA, the over-representation of men in the upper quartile of earners drives two-thirds of the gender pay gap. In the lowest pay quartile, women make up 35 percent of the mining workforce — significantly higher than their presence in other pay groups.
“Employers with the highest gender pay gaps show the greatest disparity between the proportion of women in the upper quartile, compared to the proportion of women in the workforce. In general, the greater the difference, the higher the gender pay gap.”
Women, according to WGEA, are less likely to work in the highest paying jobs in the economy. This applies to mining, which ranked as the highest paid industry assessed under the report, having an average salary of AU$195,141 across pay quartiles.
Mining engineers and the like placed ninth in Monarch’s top 10 list of the highest paying jobs in Australia in 2024 with AU$196,178.
The Chamber of Minerals and Energy of Western Australia (CMEWA) recognised this key point in a commentary on the report, with chief executive officer Rebecca Tomkinson agreeing that men still outnumber women in the sector.
“Closing the pay gap in a traditionally male-dominated industry like mining will not be achieved overnight but women are increasingly voting with their feet to join a sector that has demonstrated its commitment to boosting female participation.”
Another aspect mentioned in the report is additional payments on top of base salary, such as superannuation, overtime and performance bonuses.
Nationally, these discretionary payments often go to the higher earners or those up in the corporate ladder, which are, more often than not, male employees.
WGEA reported these payments averaged at least AU$11,204 annually across all industries. Mining saw the highest gap between average base salary and average total remuneration at AU$55,281.
Mining sector, unions making strides
The mining sector and mining unions have been making progress in recent years with regards to improving the pay gap and increasing the portion of women in the workforce.
The WGEA said that the mining industry’s mid-point of median gender pay gap decreased by 1.6 percent from 2023 to 2024. This is a significant number, as the national decrease is only at 0.2 percent.
In a separate report called 2024 Diversity and Inclusion in the Western Australian Resources Sector, the CMEWA found that the proportion of women employees in the mining and resources has increased from 18.8 per cent to 24.8 per cent over the last decade.
On the topic of childcare, Tomkinson of the CMEWA said, “Women remain the predominant caregivers for their children and in many instances stop working for a period to raise young children. This can contribute to the pay gap for women across all industries, but the resources sector has some of corporate Australia’s most accommodating policies and practices in place to encourage retention and to create a more family-friendly work structure.”
The sector is still facing difficulties, though. Last November, mining giant Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) released its 2024 Everyday Respect report, an external review of the company’s progress on lowering workplace harassment and discrimination. While there was progress in some areas, the report showed that women were disproportionately affected by harmful behaviours in the workforce. Additionally, in December 2024, a class action sexual harassment lawsuit was filed against Rio Tinto and BHP (ASX:BHP,NYSE:BHP,LSE:BHP).
Efforts to improve conditions and pay are also being made by workers and unions, including the Electrical Trades Union of Australia’s (ETU) recruitment of members large miners such as Rio Tinto and BHP. The ETU stated on its website that its campaign is to raise wages, improve conditions, secure safety and improve life for all Australians.
There is also the Western Mine Workers Alliance (WMWA), a partnership of the Mining and Energy Union (MEU) and Australian Workers Union. The WMWA recently called for improved conditions and an annual raise for workers at Rio Tinto’s iron ore operations around Paraburdoo.
On the federal level, the Australian government implemented the Same Job, Same Pay law, which mandates that labor hire workers receive wages equivalent to their permanent counterparts. This law has already led to significant pay increases for over 4,000 workers, with more expected to benefit as enforcement continues.
“Same Job, Same Pay is driving pay rises for labour hire workers as intended. It is also leading to mining companies hiring more permanent workers as their financial incentive to outsource is removed,” said MEU General Secretary Grahame Kelly, as quoted in Mirage News.
The WGEA reminded readers of its report that behind the bigger picture and statistics are the actions of employers, which ultimately drive the pay adjustments in every sector.
“As more employers take action, based on evidence of what does work to improve workplace gender equality, this will help close the gender pay gap and improve workplaces for all employees.”
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
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