The TUC, CBI and Equality and Human Rights Commission (EHRC) have issued a joint call for the Government to introduce mandatory ethnicity pay gap reporting.

In a joint letter to the Chancellor of the Duchy of Lancaster, Michael Gove, the heads of the three organisations say:

“Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.”

The letter – signed by TUC General Secretary Frances O’Grady, CBI Director General Tony Danker and EHRC chairwoman Baroness Kishwer Falkner – urges ministers to set out a clear timeframe for introducing ethnicity pay gap reporting to help “ethnic minorities reach their full potential in the workplace”.

Commenting on the recommendations of the Commission on Race and Ethnic Disparities, the letter agrees that its report comes at a pivotal moment for the country, at a time when the inequalities facing ethnic minority people are under scrutiny:

“Outcomes at work are no exception. However, we believe the report’s recommendations, in particular those related to pay disparities, could go further in order to effectively increase the participation and progression of ethnic minorities in the workplace and create a fairer Britain. Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.”

A spokesperson for the Government responded to these comments:

“The Commission on Race and Ethnic Disparities published its independent report earlier this year, which included recommendations on ethnicity pay gap reporting. We are considering the commission’s findings on this matter alongside feedback to our consultation on this issue and other work, and will respond to the commission’s report in due course.”

TUC General Secretary Frances O’Grady said:

“Everyone deserves the chance to thrive at work, and to have a decent, secure job they can build a life on. But the sad reality is that even today race still plays a significant role in determining people's pay and career progression. This problem isn’t going to magic itself away. Without robust and urgent action many BME workers will continue to be held back.

“Unions stand ready to work with employers, regulators and government on practical steps to tackle inequality and discrimination in the workplace. Mandatory ethnicity pay gap reporting is an obvious first step in helping to improve transparency and bring about change. We need ministers to commit to introducing ethnicity pay reporting now and to bring forward a clear timetable for getting it into law.”

This isn't the first time the CBI has called for mandatory ethnicity reporting, having published a guide suggesting companies with more than 250 employees should voluntarily publish their ethnicity pay gap data in the same format as they already do for gender. Gender pay reporting legislation requires employers with 250 or more employees to publish statutory calculations every year showing how large the pay gap is between their male and female employees.

Read the full letter here.