Today's Labour News

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earningsBusinessLive reports that it was agreed at last week’s Jobs Summit that the wage gap between the highest and lowest paid and between men and women should be disclosed in company financial statements.  

Business, represented by Business Unity SA (Busa), agreed that companies would be encouraged to voluntarily disclose pay differentials with a view to making these commitments compulsory within 12 months.  Disclosure of ratios between the highest and lowest paid has come to be regarded worldwide as a way to promote a fairer society as well as provide a disincentive to excessive executive pay and is compulsory in an increasing number of countries, from the US to India.  Disclosure of the gender pay gap is done less widely, with the UK recently becoming the first country to make it compulsory.  Busa CEO Tanya Cohen said on Friday:  "The idea is that business takes ownership of this and voluntarily discloses, self-reflects and addresses disparities that cannot be justified.  It is a fix-it-yourself approach."  The technical details of how remuneration is measured — for instance, which bonuses to include and when — and how the ratio is arrived at will be refined by a committee within Nedlac.  Cohen said the scope for making disclosures compulsory would be either through inclusion in the King corporate governance codes or through the Department of Labour.

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