Have you ever wondered if you are being paid fairly for a job? It's a question many people ask. In this lesson, we'll explore the concept of pay transparency, looking at how it's being discussed in Australia and comparing it to recent developments in the European Union. We'll examine what these new ideas require and then think about how similar principles could be applied in our own communities, like on a university campus or for student jobs. This is about understanding the connection between large-scale ideas about fairness and everyday working life.
Warm-up (5 minutes)
Would posting salary ranges help students?
Discuss the following questions with a partner or in a small group.
- If student job postings on campus were required to show a pay range (e.g., AUD $25–$30 per hour), how might that change things for student workers?
- What are the potential benefits? What are the possible downsides?
- Do you think this would create a fairer system? Why or why not?
Watching and Reading (12 minutes)
Watch the video below from Australia about pay transparency. Then, read the summary which also touches upon recent European Union efforts. Your goal is to understand the main arguments for and against pay transparency and identify specific examples of how it can be implemented.
What is Pay Transparency?
This video from Australia discusses the growing movement towards pay transparency and its potential impact on workplaces.
Video Transcript
Did you know that in Australia, men get paid on average 14% more than women? It's called the gender pay gap, and it's caused by many different factors. [ 00:18 ]
Expectations about traditional gender roles continue to shape career choices, with female-dominated industries and occupations offering lower pay. A lack of workplace flexibility to accommodate care responsibilities also affects the gender pay gap, with parental leave longer for women than men. This results in a longer time out of the workforce for women, impacting their career progression. [ 00:56 ]
There is also discrimination and bias in hiring, pay decisions, and promotions, with more men still getting promoted to senior leadership roles than women. Over a lifetime of earning, the gender pay gap is even more significant. This is an economic issue. Fixing the gender pay gap will benefit us all. [ 01:52 ]
Pay Transparency: Global Trends and Australian Discussions
The idea of pay transparency is gaining momentum worldwide, including in Australia. Supporters argue that knowing what others earn for similar work can help close wage gaps, particularly the gender pay gap. When salary ranges are openly shared, it provides job applicants with clearer expectations and can reduce unconscious bias in hiring.
In Australia, while there isn't a national law mandating salary disclosure for all job ads, there's increasing discussion and some companies are voluntarily adopting more transparent practices. The government has focused on reporting gender pay gaps, with new legislation now requiring large companies to publish their gender pay gap data annually.
By comparison, the European Union has gone further with its Pay Transparency Directive. This directive mandates that companies in EU member states must provide information about salary ranges in job advertisements and cannot ask about a candidate's past salary. It also requires employers to give current employees access to average pay levels, broken down by gender, for workers doing equal value work. Furthermore, if a significant pay gap exists, employers must conduct a joint assessment to address it. This directive also shifts the burden of proof in discrimination cases to the employer, meaning they have to prove no discrimination occurred if an employee alleges it.
These global trends highlight a shift towards greater openness in compensation, aiming to empower workers and promote fairer workplaces.
Vocabulary
Here are some key terms related to pay transparency and employment laws.
| Word | Definition | Example |
|---|---|---|
| pay range | (n.) the range between the lowest and highest salary for a specific job | The job posting listed a pay range of AUD $60,000 to $75,000 per year. |
| equal value | (adj. + n.) used to describe jobs that require similar skills, responsibilities, or effort, even if the roles are different | A teacher's work may be considered of equal value to a police officer's, based on qualifications and societal contribution. |
| burden of proof | (n.) the responsibility to prove that something is true in a legal dispute | With the new law, the burden of proof is on the employer to show their pay practices are fair. |
| directive | (n.) an official instruction or order from a central authority, which member states must implement into their national law | The EU issued a directive on data privacy that all member countries had to follow. |
| transpose | (v.) to transfer something from one context to another; in law, to make an EU directive part of a country's own laws | Each EU member state has until June 2026 to transpose the directive into its national legislation. |
| joint assessment | (n.) a process where employers and employee representatives work together to evaluate a situation, such as a pay gap | If the pay gap is over 5%, the company must start a joint assessment to find the reasons. |
Grammar
Unlock full access by logging in. Registered users can explore the entire lesson and more.