Questions/Answers

Despite progress, Switzerland still has some way to go until men and women are paid equally. In 2014, the average gender pay gap (GPG) was 19.5% in the private sector and 16.6% in the public sector. These disparities are detrimental to women and their families in both the short and long terms, since social insurances and retirement pensions are affected. To improve the situation, Switzerland has put in place different measures: the establishment of detailed public statistics which distinguish between the explained (today about 60%) and unexplained part (today about 40%) of the GPG but also controls within public contracts since companies which receive public mandates are legally required to comply with equal pay policy. A main measure is the launch in 2015 of a new large-scale public sector initiative “Switzerland Advancing Gender Equal Pay (SAGE)”. SAGE aims at eliminating the GPG in the whole labour market, with a special focus on the public sector’s role of “leading by example”. SAGE consists of two pillars: 1) the development and promotion of a self-test tool, Logib, allowing companies from 50 employees to find out whether their practice complies with the requirement of equal pay. Logib is reliable, easy to use, free of charge and available in different languages; 2) a charter for equal pay in the public sector which calls for regular checks to ensure the respect of equal pay within the public administration, corporations close to the public administration and in public procurement or subsidies. To date SAGE has proved its effectiveness: the federal government, half of the cantons (regional authorities) and all major cities have signed the charter, more companies are performing self-tests, new policies have been adopted, and statistics show improvement. SAGE has built a momentum to achieve equal pay for all women.

SAGE precisely aims at eliminating the unexplained part of the GPG, i.e. the inequality that remains when differences in education, work experience, professional position, etc., are controlled for. Responsibility for this inequality clearly lies with employers whose practice contravenes the law. With Logib, a simple statistical tool is available free of charge to employers from 50 employees. Thanks to Logib, employers can perform a self-test of their pay practice and determine whether there is cause for concern in terms of pay equality. In Switzerland, about 54% of all employees work within companies of this size. The Charter “Equal Pay in the Public Sector” encourages the public sector (Confederation, cantons, cities) to “lead by example”. Its members are committed to regularly check respect of equal pay, in accordance with scientific and legal standards, within the public administration, corporations close to the public administration and companies or organisations obtaining public procurement or subsidies. They also accept to be transparent about the results of the analysis in the public administration. The main objective of SAGE is to create a dynamic by making self-testing of equal pay practice an integral part of good governance for Swiss employers, whether public or private.

Studies indicate that, although pay equality is crucial for women, most of them don’t file a complaint in court for fear of losing their job or having to go through long proceedings. Surveys also show that the few employers who performed an analysis and discovered inequalities have undertaken corrections benefiting women, including those in low-paid positions. With the Charter and the tool Logib, SAGE promotes then responsiveness to the needs of women. To get public employers to assume their responsibilities, SAGE has put in place campaigns, a web information platform, brochures, advertising clips, workshops and in particular an annual high-level conference presided by Minister Alain Berset. A helpline, an email helpdesk, multilingual online tutorials and technical instructions facilitate the use of Logib. SAGE makes visible the strong commitment of public authorities to promote transparency and accountability within their sphere of influence. SAGE supports gender equality in a wider perspective since Logib-results give an overview of the general situation of women in companies, such as representation in management positions. Moreover, the Charter also aims to guarantee equality in recruitment, training, and promotion. It, therefore, has a transformational impact on the situation of women working in the public administration.

Putting in practice equal pay is a major step towards achieving equal opportunities for women and men. Equal opportunities, in turn, are an important factor for the well-being of families and for the advancement of the Sustainable Development Goals SDG (Goals 1, 3, 5, 8 and 10), especially goals number 5 and 8.5. The ILO-Gallup world survey “Towards a Better Future for Women and Work: Voices of Women and Men (2017)” shows that one of the main challenges for women at work is unequal pay, which is especially hard on women with a low income. In Switzerland, seven out of ten people with a low income are female. Thanks to SAGE, Switzerland is also assuming an important role within the Equal Pay International Coalition EPIC 2030, led by ILO, UN Women and the OECD. It provides the international community with an interesting tool already referred to as good practice and shows the way with the charter for equal pay in the public sector. It shares specific know-how and a framework for the exchange of experiences.

In order to deliver public services, authorities depend on goods, services and infrastructures provided to them by private companies. In Switzerland, the financial volume of public procurement is about $42 billion (8.4% of GDP). Swiss public authorities use their influence in public procurement procedures to set certain standards for their service providers. One of these standards is the requirement for equal pay. In this way, unfair competition caused by companies discriminating against women can be effectively fought. Such dismantling of obstacles to the effective operation of the market strengthens fair competition. Moreover, equal pay encourages qualified women to stay in the labour market as highly motivated workforce for public and private sector employers. This additional labour supply helps to overcome the skill shortage in Switzerland . Equal pay is not only a women’s issue and a question of justice, it is a question of smart economics.

In Switzerland 75% of the male population and 63% of the female population aged 15 and above are gainfully employed. However, only for 2010, the shortfall in earnings for women resulting from the unexplained part of the GPG was estimated at almost $8 billion. This disparity is detrimental to women and their families both in the short and long terms. Reducing the GPG therefore has a major impact on the economic well-being and social security of a large share of the population: working as well as retired women. Compliance with equal pay is a national challenge. The public sector alone accounts for about 750 000 employees (about 414 000 women and 335 000 men) who are directly impacted by equal pay policies. By sending a strong signal to all employers in Switzerland, the Charter has moreover created a positive dynamic throughout the whole economy. By raising the number of analyses of pay practices, SAGE affects all men and women working in Switzerland in both the public and private sector.

Logib has an unprecedented design. The software is free of charge and easy to use: no special knowledge is required. Logib allows employers from 50 employees to perform an equal pay self-test which ensures data protection. It is based on Excel. Detailed instructions and answers to frequently asked questions are provided, making results easy to interpret. Only about two days are required to perform the first analysis, following analyses require only a few hours. All data remains in the possession of the user. The European Union, for example, has more than once cited Logib as an example of best practices. With the Charter, the commitment of the public sector is sending a new and strong signal. It puts the public sector players under peer pressure to ensure pay equality as employers and contracting authorities. It encourages them not only to perform analyses but also to implement policies (i.e. procurement processes). It allows an exchange of good practices, hitherto non-existent, accelerating the process of their further spread. By serving as a role model, the public sector is putting pressure also on private employers to follow the example. SAGE started a public discussion about equal pay.

The SAGE initiative and its two pillars have their origins within the Federal Office for Gender Equality (FOGE), an office belonging to the Federal Department of Home Affairs (FDHA). Logib has been created by FOGE through a process of many years. The idea of launching a Charter was also born within the FOGE. At a first national conference on equal pay in the public sector in 2015 gathering political stakeholders from the national, cantonal (regional) and communal levels, the aim was to reinforce determination to put into practice the constitutional principle of equal pay for equal work or work of equal value. Political decision-makers at all state levels have been convinced to support it. In the run-up to the second conference in 2016, FOGE, thanks to the determined political backing from its Minister of Home Affairs Alain Berset, launched a Charter for equal pay in the public sector. The aim of the third conference in 2017 directed at public managers and HR-professionals was to reinforce the willingness to implement equal pay and to foster an exchange of good practices. Several high-level politicians and business leaders took part impressing the audience by their powerful statements and transparent information.

One of the strengths of SAGE is that it could be realised with limited financial, human, material and other resources, much of the work for the initiative is being done in addition to the daily business by the FOGE team. SAGE is funded 100% by the Swiss federal government via FOGE; no one else has contributed to the financing. In total, the external costs of SAGE are estimated at $ 740 000: CHF 300 000 for developing, realising and promoting Logib; CHF 200 000 for the promotion of pay equity in the public sector and for implementing the Charter; CHF 100 000 for mandates for external research such as development, evaluation and scientific verification, and for mandates to external specialists in equal pay and work evaluation (support in developing checks within federal public procurement); CHF 100 000 for the scientific verification of Logib.

Oui

Globally, the tool has generated wide interest. Replication of the Logib solution has already been done several times at the international level. For instance, the EU has developed a similar tool called Equal-Pace, which is available for Germany, France, United Kingdom, Belgium, Netherlands, Luxemburg, Finland, Poland, and Portugal. Logib is an important part of the Czech Republic policy to tackle the GPG. Other countries, such as Chile, South Africa, South Korea and Panama, have asked for more information. SAGE was able to kick off a process of mutual learning. The goal of the Charter itself is to replicate equal pay practices and policies at national, cantonal and communal level. This aim could be reached by organising conferences enabling and fostering exchanges and peer reviews, disseminating measures in the whole country and accelerating the process of their further spread. SAGE has prompted a lot of interest among international stakeholders. That is why in the framework of the EPIC, Switzerland has been asked to take an active role. EPIC aims to multiply the outreach and impact of measures undertaken by different partners, providing a framework within which existing initiatives and organizations can connect and reinforce one another.

Sustainability is granted for all key aspects. It is not equality that costs, but the lack of equality. Lacking equality does not only entail costs for individuals, but families, social insurances and thus, society as a whole, both in the short, medium and long-terms. A higher participation of women in the labour market not only strengthens their own social security situation but contributes to the sustainability of the social security system as a whole. Another major social benefit can be achieved through the economic empowerment of women. In most industrialized countries, guaranteeing equal rights to men and women is a key factor of demographic vitality and economic health. Whereas in the early 1980’s, fertility was highest in developed countries with the lowest levels of women in employment, the opposite is true nowadays: fertility is higher in countries with the highest levels of female professional activity. Countries facing nowadays shortage of specialists have to encourage women to work in order to meet the needs of the labour market and the economy as a whole in the long term. The proof of equal pay is clearly a strong incentive. Therefore, the initiative benefits society and economy in a clearly sustainable way.

Thanks to SAGE, a tool (Logib) allowing self-tests in companies and controls of companies performing services in the public procurement is available as a result of which current legislation can be enforced. In Switzerland, this has also led to a new legislative proposal: All companies from 50 and more employees should be obliged to carry out a self-test every 4 years under the supervision of a third party. The method used should be compliant with scientific and legal norms. The project is currently pending in the Federal parliament. Should the proposed bill be adopted, sustainability is granted. The Charter also guarantees sustainability in terms of durability in time: Controls within the public administration, within corporations close to the public administration, public procurement or subsidies are scheduled regularly and repeatedly. The commitment for equal pay is currently part of the legislative program 2015-2019 as well as of the Swiss Sustainable Development Strategy 2016-2019. Being part of a national program on equal pay lasting several years up to 2020, SAGE will be continued. Moreover, several parliamentary requests ask for stronger commitment in the future. Switzerland is therefore definitely part of a global dynamic in this policy field (DE, UK, ICE, etc.)

Oui

The two pillars of SAGE have been evaluated at different stages and in various contexts as follows. In response to a parliamentary proposal, the Swiss administration carried out a review of the statistical method and the tool Logib used to determine equal pay. As part of a regulatory impact assessment of the above-mentioned new legislative proposal, a representative survey was conducted showing strong interest from companies on the topic of equal pay (2700 contacts / 1305 answers: response rate of 48%). A scientific paper (Giannina Vaccaro, 2016) proved a positive effect of Logib on reducing the unexplained GPG. Furthermore, an evaluation of the self-declaration mandatory in federal public procurement took place in 2017 indicating long-lasting impact. Concerning the Charter for Equal Pay in the Public Sector, the FOGE has conducted several surveys and implemented a database documenting the undertaken measures and progress made.

Findings indicate that Logib is widely recognized. It is based on a scientifically solid statistical methodology accepted by the Federal Supreme Court as a method for use in cases relating to wage discrimination. An increasing number of downloads and incoming phone calls show the growing number and interest of Logib-users. The effort for a self-test with Logib is considered proportionate and employers find Logib simple to apply. Moreover, self-tests are adequate: 50% of companies which performed an equal pay analysis made adjustments, usually raising women’s wages. Logib is effective in reducing the unexplained GPG. Findings (Giannina Vaccaro, 2016) indicate that the mean unexplained GPG of firms with at least 50 workers was diminished by 3.5 percentage points after the introduction of Logib. By the end of 2017, a majority of cantons had signed the charter and performed an analysis of their pay practices. The FOGE carries out 30 checks within the federal public procurement every year. Statistics show the GPG is decreasing. As the World Economic Forum’s Gender Gap Index 2017 testifies, Switzerland has made progress when it comes to the GPG: ranked 43 in 2016 and 34 in 2017.

The indicators used were the following: number of self-tests in companies, acceptance, and use of Logib (inter alia number of Logib downloads and of incoming phone calls to the Logib Helpline), number of signatories to the Charter, which shows the commitment. A database collects relevant data and shows progress made in the public sector such as the number of self-tests within the public administration or checks within corporations close to the public administration, public procurement or subsidies performed and the quality of measures undertaken by authorities. Finally, yet importantly, statistics measuring the GPG between women and men are published every two years and taken into account. The GPG is listed among the indicators of the legislative program; it is measured regularly and the results are published every year assuring transparency.

FOGE has designed, built and implemented Logib, which it operates and develops with the support of private institutions specializing in social research and statistics as well as external experts in equal pay and work evaluation. Project aims were set and technical solutions determined in collaboration with the private scientific consulting company Büro BASS. By developing Logib, an incremental phase model was chosen to allow parallel realisation and early testing of the tool. Companies were involved in this phase as they are the main stakeholders. Employees, especially women, are the first beneficiaries of the tool. Close collaboration with employers and employees’ umbrella associations, NGOs, national associations and state-affiliated companies has been maintained ever since. For Logib, only standard data is needed: those required in official payroll statistics which employers participating in the Earning Structure Survey have to deliver annually. Other public organisations were involved such as the cantons and cities, represented by the Swiss Conference of Gender Equality Delegates. The Charter has been designed and initiated by the FOGE in collaboration with the Swiss Conference of Gender Equality Delegates, the Federal Office of Personnel and the Federal Procurement Commission. A crucial role in the charter’s promotion to obtain more signatories has been played by lobbying NGOs but also by politicians at all levels who deposited parliamentary proposals as well as by simple citizens who asked their authorities for accountability and transparency. The consultancy and research bureau Ecoplan developed a database allowing monitoring. Within the joint engagement of the Swiss social partners towards equal pay, the former Dialogue on Wage Parity (nowadays Engagement equal Pay ELEP), Logib is used as a tool. Within this social partnership, its value has been reinforced.

Logib: Many employers are unaware that they are breaking the law. It still is a challenge to convince them that they have to monitor their pay practice since every pay structure can result in discrimination despite the best intentions. One of the major concerns of employers besides a lack of knowledge about performing an analysis is the fear of bureaucratic burden. Charter: To overcome political barriers and reservations, there is a constant need for a strong political backing from Minister Berset, commitment from other relevant stakeholders, support from the civil society and persistent dialogue with employers and employees’ umbrella associations. Furthermore, public perception and acceptance is a key element: broad media coverage of SAGE led to the GPG becoming a widely discussed topic, which has resulted in an important civil society engagement. Public and political pressure on public authorities to sign the Charter and on private companies to comply self-tests has risen. In order to pursue the engagement, the initiative will proceed and probably be extended. Currently, there is a request for a self-test tool for companies with fewer than 50 employees, which would enable small municipalities to sign the Charter too. The FOGE is currently developing such a tool.