Case Study: Equal Pay - Alliance and Leicester PLC

Alliance and Leicester undertook an equal pay audit in 2005. The aim of the audit was to identify any equal pay issues, consider whether there was objective justification for any gender-related pay differences and make recommendations for eliminating any difference which could not be objectively justified. The company worked closely and collaborated with their trade unions throughout the process. The audit itself was carried out by an independent external body.

The process is ongoing with issues being rectified over a number of years. In 2005 the company approached the pay negotiations and agreement in a wholly different format to begin to address some of the historical lower pay/equal pay issues. Issues included:

• Consideration of a number of options in relation to job evaluation
• The Equal Pay Review will be updated and conducted regularly
• Consultation will be carried out with regard to pay progression
• Consideration of a policy dealing with problems arising from gender discrepancies
• Review of the reward and recognition policy to ensure that it supports the agenda to improve any equal pay anomalies
• Continuing to address equal pay issues through annual pay reviews

Alliance and Leicester continues to work in partnership with unions and there is ongoing consultation on equal pay issues. The current focus is on:

• New job evaluation processes which will be implemented in October 2007
• Tackling pay progression issues with particular reference to individuals low in pay ranges though the annual pay reviews
• Introduction of Broad banding with the aim of equalising benefit entitlements and encouraging career progression

In addition, Alliance and Leicester is reviewing a Flexible Benefits Offer to provide increased choice for staff around design and content of their reward package.

Fiona Pizzey