Review of the Equal Opportunity for Women in the Workplace Act 1999 Consultation Report
7 Options to improve equal employment opportunity framework
This section provides findings from the consultation activities in relation to practical solutions to improve the equal opportunity for women framework to enable the delivery of better outcomes for Australian women. This includes the range of reform options that have been suggested in relation to legislative changes, the role of EOWA, incentives and institutional arrangements.
7.1 Legislative change
The consultation process identified that overall people support the retention of the EOWW Act as a separate piece of legislation. In the main, where there was support for the EOWW Act, there were also recommendations that the legislation be strengthened.
7.1.1 Name of the EOWW Act
A range of suggestions were received in relation to a more appropriate name for the EOWW Act. These suggestions came from a small minority of public submissions. While some dissatisfaction with the existing name of the EOWW Act was expressed through other consultation mechanisms (eg the individual interviews), few suggestions for an alternative name were received.
Some dissatisfaction with the name of the EOWW Act related to its length and its acronym. Others had more fundamental objections that the name reflected a philosophy or approach to the issues which should be changed. There were two dimensions to this - first that it reflected a focus on creating 'equal opportunity for women', which is focused on changing processes and programs not actually achieving equal outcomes and, second, that it reflects a focus solely on women rather than equality between men and women.
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Of those submissions that commented on the name of the EOWW Act, a number suggested that a greater focus on achieving equal outcomes for women, rather than to equal opportunity for women, is appropriate.
The EOWW Act and EOWA should be renamed the Workplace Equality Act and Agency, or the Women in the Workplace Act and Agency
(Submission, EOWA)
The core purpose of the EOWW Act and Agency should change from being the promotion of equal opportunity for women to promoting gender equality in the workplace. This change in purpose is to ensure that action by the EOWA is clearly directed towards promoting equal outcomes for women and men (substantive equality) rather than ensuring that women have the same formal opportunities (formal equality)...;. 22. The EOWW Act should therefore be amended to change its name to the Gender Equality in the Workplace Act, the EOWA should be renamed the Gender Equality in the Workplace Agency, and the EOWW Act should include the achievement of gender equality as a key object
(Submission, Australian Human Rights Commission)
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7.1.2 Objects of the EOWW Act
The consultation process identified a number of options relating to improvements to the objects of the EOWW Act. These focused on reflecting the aim of achieving equality rather than equal opportunity for women (consistent with comments on the name of the EOWW Act), and greater recognition of the role of men as carers being incorporated in the objects of the EOWW Act.
A small minority of interviewees expressed caution in their support of the EOWW Act and any amendments that may be made to its objectives. This view was largely held by employers and employer groups who argued that legislation and the reporting requirement was not the most appropriate means of addressing the root cause of inequality. The recent introduction of new legislation, namely the FWA, and the right to request Individual Flexibility Arrangements (IFA), which may impact on women's equality in the workplace, was given as a reason to take a cautionary approach to changing the EOWW Act. It was recommended that a 'wait and see' approach be taken to the impact of the FWA before changing the EOWW Act.
There is no need for substantive changes to the EOWW Act or EOWA. This is particularly so in light of recent, significant change to industrial relations legislation, namely the Fair Work Act...; There are a number of untested regulatory mechanism related to equal employment opportunity, introduced through the FWA , which should be allowed time to play out and for their impact to be assessed, prior to changing the EOWW Act.
(Interview, Daniel Mammone and David Gregory, Australian Chamber of Commerce and Industry)
The consultation process also raised the option of extending the objects of the EOWW Act in relation to the entire diversity agenda. For example, a community organisation expressed in its public submission that the EOWW Act needs to have a broader scope of focus from just women to looking at the diversity of participation from many under-represented groups.
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Consideration should be given to the proposed Equality Bill currently before the British Parliament, which includes extending the scope of positive action. For example, employers will be able to take into account under representation of particular groups when they are selecting between equally qualified candidates; inequality within and between industries will be able to be investigated; requirements in relation to promoting equality via public procurement activity will be strengthened; and trade union equality representatives will be supported.
(Submission, Government)
A number of individual interviewees representing industry indicated that such a change was necessary to keep pace with the increasingly prevalent business practice, which had a 'diversity' agenda, rather than a 'gender' agenda. Respondents to the survey of reporting organisations also raised the suggestion of focussing on diversity rather than gender:
I feel it would be more beneficial to focus on broader diversity, rather than solely women as all diverse groups could benefit from undertaking a Program such as this. This would also mean the investment in time would be more worthwhile.
(reporting organisation survey respondent)
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7.1.3 Coverage of men under the EOWW Act
Of the public submissions received, 28 percent (36 submissions) indicated that the role of men as fathers and carers should be acknowledged in the EOWW Act, while nine percent indicated that the role of men should not be acknowledged in the EOWW Act. In addition, 35 percent of submissions (45 submissions) suggested that there should be a greater focus on enabling men and women to share paid work and caring responsibilities more equally.
An extension to the work of EOWA would be to encourage workplace programmes which are supportive of carers and to more actively recognise and promote the involvement of men in caring work as a way of providing support to women in gaining more equitable access to employment and career development-
(Submission, Government of South Australia, Premier's Council for Women)
The objects of the EOWW Act should include the promotion of substantive gender equality in the workplace, recognising that:
barriers to women's equal participation in paid work are directly impacted by men also having greater access to flexible work arrangements for family and caring responsibilities; and
achieving substantive gender equality will require both removal of barriers to equal opportunity and also special measures to achieve equal outcomes for both genders in the workplace
(Submission, Australian Human Rights Commission)
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Further to this, 20 percent of submissions recommended that employers encourage men to take up flexible work arrangements as a way of providing men with better opportunities to participate in the care of their children and other dependents. This mechanism was most popular among submissions from industry. Ten percent of submissions felt that awareness raising to change the perception of men's and women' roles was a means to provide men with better opportunities.
The survey of employees found a strong recommendation for men and women to be encouraged to share paid work and care more equally. Eighty-nine percent of respondents either strongly agreed or agreed with this proposal, while only four percent of respondents disagreed or strongly disagreed. Female respondents were more likely to strongly agree with this proposal compared to male respondents. There was little difference in responses when considering the respondents employment status, organisational size, whether they have dependents or not and whether they are employed in the public or private sector. When considering the occupational groups, managers and professionals expressed a stronger desire to see men and women encouraged to share paid work and caring more equally when compared to clerical or administrative worker respondents.
Acknowledging the role of men within the EOWW Act was discussed at two of five of the roundtables in the context of the future scope and content of the EOWW Act. One roundtable suggested that men be included in the 'debate' about how to improve women's equality in the workplace and the other roundtable expressed mixed opinions regarding expansion of the EOWW Act to include men. A suggestion was received from one participant that the EOWW Act could expand the understanding of the caring role as a role undertaken by men as well as by women.
Through the individual interviews, it was suggested that the relationship between home/caring roles and work roles be acknowledged. Some interviewees felt that there should be greater sharing of the home/caring role between men and women and that this should be encouraged through legislation. One interviewee was of the opinion that, from an economic point of view, promoting shared care arrangements is inefficient for couples involved and for the economy as a whole. This view was expressed as particularly important at the upper end of the occupational spectrum (eg skilled professionals and senior management) where the gains from specialisation are greater than at the lower end. This view held that there was no reason why the member of a couple that specialises in work should be male while the member that specialises in the home/caring role should be female.
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7.1.4 Coverage of the reporting requirements
Coverage of the EOWW Act was a key area for comment across the consultation tasks undertaken. Strong views and suggestions for improvement were expressed in relation to the application of reporting requirements on organisations with less than 100 employees, the application of reporting requirements on government agencies, departments and statutory authorities, the specification that subsidiary organisations report separately where they belong to significant parent organisations, as well as stricter identification of organisations covered by the EOWW Act.
Extending reporting requirements to smaller organisations
The consultation process has identified a general desire to expand reporting requirements to organisations with less than 100 employees. The rationale in many instances was the view that a significant proportion of women in the workforce are employed by small-to-medium size organisations that employ less than 100 individuals. As such, current reporting requirements are not impacting on a sizable portion of the female workforce.
Of those submissions that commented on the current coverage of the EOWW Act, 72 percent felt that coverage should be expanded, while one percent felt that coverage should be decreased. Of those that felt that coverage should be expanded, 53 percent felt that smaller organisations should be covered.
...;Companies with fewer than 100 employees need to be involved...with a view to being included in the legislation in a streamlined manner in 3 - 5 years' time
(Submission - Expert individual)
...;Consideration be given to gradually extending the Act's coverage to smaller employers with appropriate adjustments to compliance obligations
(Submission, Peak body)
...;Workplaces of 15 employees or more should be defined as a reporting organisation...an appropriate reporting mechanism for organisations of fewer than 15 employees needs to be identified
(Submission, Union)
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In the context of roundtable discussions of the future scope of the EOWW Act, participants expressed mixed views regarding extension of reporting requirements to cover organisations with less than 100 employees. Consensus was reached at three roundtables that compliance with the legislation should include organisations with less than 100 employees (Adelaide, Perth, and Brisbane). The remaining two roundtables (Melbourne and Sydney) did not come to a consensus view. Participants at Melbourne's roundtable felt that more needed to be done to identify the implications of expanding the reporting requirement to small business, while participants in Sydney held different views as to the utility of extended reporting requirements, with some indicating that the focus in the immediate term should be on ensuring that all organisations with over 100 employees are complying with the EOWW Act.
A number of individual interviewees recommended that reporting requirements be extended to cover organisations with less than 100 employees. These interviewees also suggested that the reporting obligation should be reduced to be commensurate with the size of the organisation, as existing requirements would be too onerous for small-to-medium enterprises.
Employer organisations and some businesses consulted, however, opposed any expansion of reporting requirements to smaller organisations. This view was expressed by employer organisations and a small number of industry representatives through the public submission process, the roundtables and the individual interviews. The reason given was that the reporting burden and associated resource requirements, as they currently exist, outweigh any benefits that could be derived through meeting a reporting obligation. In addition, some employer organisations felt that small to medium organisations faced a substantially different operating environment compared to larger organisations which meant that reporting requirements were inappropriate. This included the view expressed by the Vice Chair of the Council of Small Business Organisations of Australia that smaller organisations naturally experience fewer blockages to equal opportunity for women and that compliance with equal employment opportunity principles is generally high, without the reporting requirement. The example was given that, due to resourcing constraints faced by smaller organisations, there is a greater will to retain employed females through quality training and flexible work arrangements, rather than incur the cost of absenteeism and recruitment (Interview, Judith van Unen, Council of Small Business Organisations of Australia).
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(Submitter) consider that even less stringent reporting requirements than those that currently apply to businesses with more 100 employees would be too great a burden for small business
(Submission, Peak body)
Extending the scope of the Act to place obligations (i.e. reporting requirements) on small and medium enterprises is strongly opposed
(Submission, Chamber of Commerce and Industry Queensland)
Smaller firms achieve EEO in different ways to larger firms - smaller firms may not, for example, be able to offer the same level of flexibility in work arrangements as larger firms can
(Interview, David Gregory and Daniel Mammone, Australian Chamber of Commerce and Industry)
In general, and where employer groups acknowledged the introduction of extended reporting requirements to smaller organisations, all were of the opinion that the requirements need to be proportionate to the size of the organisation.
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Reporting requirements on government agencies, departments and statutory authorities
The roundtables, individual interviews and public submissions all raised the suggestion that the coverage of the EOWW Act should be extended to government agencies, departments and statutory authorities. It was reasoned that government should be covered under the EOWW Act to increase consistency between the public and private sectors, to encourage the public sector to be more proactive and transparent in introducing strategies to support women in the workplace and to ensure that the public sector is 'leading by example'.
Of those public submissions that advocated for coverage of the EOWW Act to be expanded, 27 percent suggested that the public sector be covered by the EOWW Act.
It is essential that government 'practices what it preaches'
(Submission, Chamber of Commerce and Industry Queensland)
The Adelaide roundtable reached the consensus view that requiring the public sector to report under the EOWW Act was necessary, particularly given the size of the sector. The Brisbane roundtable also advocated for government agencies to report under the EOWW Act. The Sydney roundtable expressed the consensus view that reporting should be extended to unions and government-funded Non-Government Organisations (NGOs).
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Subsidiary organisations report separately where they belong to significant parent organisations
Of those public submissions that indicated that the current coverage of the EOWW Act should be expanded, six percent expressed the view that subsidiaries should be covered as separate entities. The reason provided was that the workplace experience of many women was not adequately captured where their direct employer was included as part of a much larger corporate structure.
Corporations should not be able to submit one EEO report on behalf of all their operating companies when any one of their operating companies satisfies the definition of 'relevant employer' for the purposes of the Act
(Submission, Australian Council of Trade Unions)
It would be considerably more meaningful and appropriate to break up these exceptionally large organisations into business areas for reporting
(Submission, Diversity Council of Australia)
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Stricter identification of organisations covered by the EOWW Act
Many stakeholders raised concerns about the quantum of covered organisations that do not self-identify to EOWA and therefore are not providing reports in compliance with the EOWW Act. Many recommended that a stronger compliance role be taken by EOWA or another relevant agency. It was frequently suggested that this identification be enabled through access to relevant government databases, which may include Australian Tax Office taxation records, ASIC company records, or relevant ABS data.
The Agency recommends that the Government amend the Income Tax Assessment Act 1936 to enable it to receive an annual list of organisations whose corporate structure employs 100 or more people
(Submission, EOWA )
Of those public submissions that commented on whether or not self-identification and disclosure was appropriate (43 submissions), 53 percent responded that it was not appropriate (23 submissions). Of those who felt that there are alternative means of identifying organisations,(16 submissions), 56 percent (9 submissions) expressed that there should be linkages to other government data.
The (submitter) recommends that self identification be an explicit requirement of the Act.
(Submission, Union)
A mechanism should be established to ensure that all covered employers are notified to the Agency, for example, through amending the Income Tax Assessment Act 1936 (Cth) to enable the EOWA to receive an annual list of all organisations employing 100 people or more. Pending amendment, EOWA should conduct a high profile campaign to alert all covered employers of their legal obligations under the EOWW Act
(Submission, Australian Human Rights Commission)
A number of stakeholders interviewed recommended that companies no longer be able to self-report as many were either choosing not to report or were unaware of their reporting obligations. In her interview, Elizabeth Broderick, Sex Discrimination Commissioner, reiterated the recommendation made in the public submission of the Australian Human Rights Commission that the compliance framework relating to organisations with more than 100 employees be strengthened by organisations being required to obtain a certificate of compliance from EOWA and publish their certification in their annual reports, including annual reports to the Australian Stock Exchange, where applicable.
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7.1.5 Preparation of workplace programs
Mixed views were received in relation to the usefulness of the requirement to prepare a workplace program and ways in which this requirement could be improved. Consultation activities highlighted a view that workplace programs are meritorious in 'keeping equal employment opportunity for women on the agenda' and for illustrating areas that require attention. For these reasons, it was felt that workplace programs should continue to be prepared. Consultation activities also uncovered a view that workplace programs are an administrative and time-consuming task that on a year-on-year basis provide little insight to an organisation's performance. In response to this, recommendations for improvement centred around reducing or removing the requirement to prepare a workplace program.
The public submission process highlighted a range of proposed improvements to the preparation of workplace programs. Fifteen percent of public submissions indicated that the content of workplace programs are useful and appropriate and 16 percent indicated that they are not. Of those submissions that suggested improvements to the content of workplace programs, 56 percent proposed that requirements relating to content be expanded, while 35 percent suggested that they be changed, and four percent suggested that requirements be reduced. The remaining four percent suggested that requirements be removed entirely.
In relation to the process of preparing workplace programs, 16 percent of submissions found the process useful and appropriate, whereas 14 percent did not. Proposed solutions that consistently received attention across public submissions related to the need to consult with employees, the need to simplify the requirements of developing a workplace program, the need to be more prescriptive in the information provided and the need to link this process to quantitative goals and measures of progress. Quotes from public submissions relating to these suggestions are provided below.
The need to consult with employees:
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..One of the main deficits that needs to be urgently addressed is a requirement for consultation with employees and their unions, where present, in the equality audit and reporting process
(Submission, Dr Sara Charlesworth)
The need to simplify the requirements:
There is a lot of duplication/repetition when preparing an analysis of issues, actions to be taken and evaluating actions
(Submission, Industry)
The need to be more prescriptive:
(The) free form structure of current reporting....does not provide a benchmark for organisations to use as a guide as to whether a practice is inequitable or what standards they should aspire to achieve
(Submission Australian Council of Trade Unions)
The need to link the development of workplace programs to measure or outcomes of progress:
Stronger focus on tracking actual changes in gender equity within the workforce. This could include, for example, changes in the pay gap, flexible work arrangements, and gender diversity leadership roles, rather than processes such as training and mentoring schemes.
(Submission, Australian Human Rights Commission)
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Individual interviews also strongly advocated that consultation with employees, specifically with women employees, become a formal and enforceable workplace planning and reporting requirement. Anecdotal evidence was provided during interviews in relation to the lack of employee consultation, despite it being a requirement of developing a workplace program.
Furthermore, individual interviews suggested that additional tools and resources would be useful to reporting organisations in developing their workplace program. It was suggested that these tools and resources be developed and disseminated by EOWA administering the EOWW Act and be provided as online resources, as well as through facilitated workshops where reporting organisations could come together to share ideas on initiatives and strategies detailed within their workplace program. A small number of interviewees did recommend that the planning and reporting cycle be linked to the more common three to five year strategic planning process that organisations undertake, rather than being run on an annual basis. This was stressed as a means of reducing the regulatory and resource burden on reporting organisations.
The survey of reporting organisations found that, overall, respondents would make no change to the following elements of developing a workplace program: the requirement to confer responsibility for developing a workplace program on a person with sufficient authority within the organisation; the requirement to consult employees; the requirement to prepare a workplace profile; the requirement to prepare an analysis of workplace equal opportunity issues relating to the employment matters; the requirement to take actions on priority issues; the requirement to evaluate the effectiveness of actions; and the requirement to specify future actions in relation to achieving equal opportunity for women in the workplace. Of all of these requirements, the latter received the highest score in relation to changing it, with 20 percent of respondents recommending that the requirement be removed. The removal of the requirement to prepare an analysis of workplace equal opportunity issues relating to the employment matters was also suggested by 19 percent of respondents.
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The level of compliance attained by reporting organisations appears to be related to their recommendation to change the requirements for developing a workplace program56. The group most likely to recommend change were those who achieved marginal compliance in 2008, while the group most likely to support the preservation of existing requirements were those that attained a high level of compliance in 2008. Across the requirements identified for potential change, marginally compliant respondent organisations recommended complete removal of the requirements at a rate of 23 percent. This is compared to highly compliant respondent reporting organisations, which only recommended complete removal, on average, in seven percent of cases.
7.1.6 Reporting requirements
A strong view was expressed in the consultations that reporting requirements need to be simplified and that this should be done through reporting on outcomes. Many advocated for a requirement to report progress against a set of industry benchmarks or indicators of performance. These indicators may represent industry-specific targets to which organisations should aspire. Many individuals further recommended that reported progress against targets be made public. In addition and across all consultation activities, it was recommended that the reporting timeframe be extended. Streamlining the way in which reports could be delivered was also seen as necessary, with the primary recommendation focussing on completion of a pro-forma that would be submitted electronically directly to EOWA.
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The need for mandatory reporting
In considering the regulatory role for government, 16 percent of submissions indicated that mandatory reporting should be a role for government. Mandatory reporting was the second most highly ranked role for government by those submitters who discussed what the government's regulatory role should be. Public submissions from academic, industry, expert individual and union sources indicated a stronger preference for mandatory reporting compared to public submissions from community organisations, government, peak bodies and individuals.
The reporting organisation survey found that, overall, reporting organisations did not consider it necessary to change the requirements of developing a report to EOWA. The requirement that respondents most frequently requested to change was the requirement to report on future actions in relation to achieving equal opportunity for women in the workplace. Twenty-four percent of respondents suggested that this requirement be removed, whilst 11 percent suggested that it be made more specific. The second most frequently requested change was the requirement to report on the effectiveness of actions. Twenty-two percent of respondents indicated that this requirement should be removed while 10 percent indicated that it should be made more specific.
When considering reporting organisation respondents by industry, it is apparent that there are differences in the extent to which different industry sectors recommend changes to reporting requirements. The Education and Training, Arts and Recreation Services, as well as the Information Media and Telecommunication industries, reported lower levels of satisfaction with current reporting requirements compared to Construction, Electricity, Gas, Water and Waste Services, Professional, Scientific and Technical Services, as well as Rental, Hiring and Real Estate Services. Of the three industries listed that sought a change to the requirements for developing a report to EOWA, approximately one-quarter from each industry recommended removal of the reporting requirement.
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Whilst the sample size of reporting organisation respondents with between 20 and 99 employees (29) is relatively small, there is a clear preference from these respondents that reporting requirements should be removed, relative to the respondents from organisations with over 100 employees. In fact, the survey responses suggest that larger reporting organisations are more comfortable to leave reporting requirements unchanged, compared to smaller reporting organisations. Whilst 31 percent of organisations with 20 to 99 employees recommend that reporting requirements be removed, only 19 percent of organisations with over 500 employees indicated this preference. .
Unsurprisingly, marginally compliant reporting organisations exhibit the greatest desire to have reporting requirements removed (29 percent of marginally compliant respondents), compared to 11 percent of highly compliant reporting organisations57. Fifteen percent of highly compliant reporting organisations suggest that reporting requirements be made more specific and appear to be particularly concerned with the requirement to report on actions on priority issues as one that needs to be made more specific (19 percent of highly compliant respondents).
The survey of employees highlighted a strong preference for regulation as necessary to ensure employers take actions aimed at equal employment opportunity for women. Eighty-seven percent of employee survey respondents either strongly agreed or agreed that regulation is necessary, while only four percent strongly disagreed or disagreed. Female respondents showed a stronger preference for regulation over male respondents as did Community or Personal Service Workers and Sales Workers over Managers and Clerical or Administrative Workers. Responses across industries were relatively consistent as were responses across organisations of different sizes and individuals with dependents or not with dependents.
In relation to proposals that employee survey respondents felt would have the greatest impact in achieving equal employment opportunity for women, compulsory reporting of pay and pay ratios was proposed by six percent of employee survey respondents.
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Outcomes-focussed reporting
The public submission process identified a range of solutions relating to perceived issues with the reporting requirements under the EOWW Act. When describing mandatory reporting requirements, 13 percent of the all submissions received recommended that there be a greater focus on indicators or benchmarks and not processes. For example, in a submission from government, it was suggested that streamlining the reporting process could be enabled by requiring organisations to 'report on standard outcome-based measures in their workplace programs as part of their annual business reporting'.
This sentiment is also expressed in the following quotes from submissions:
..[organisations should] report annually to the federal government on the gender breakdown of their entire workforce, the gender breakdown of each salary band and their targets for improving equity at each level of employment
(Submission, Anne Summers)
[AEU] supports the re-introduction of a more structured reporting format which requires employers to provide the relevant statistical data, identify any inequity, set targets and action plans and assess progress for each key employment matter
(Submission, Australian Education Union)
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Targets
Recommendations for targets to be established as part of the reporting process emerged relatively strongly through public submissions. Targets were generally understood by stakeholders to be voluntary goals for organisational performance in relation to measures of employment equality which are reported against publicly. Setting or requiring targets to achieve equality for women was the most highly discussed role for government across the public submissions.
Thirty-six percent of submissions that saw a regulatory role for government indicated that this should include requiring, or setting targets. This is equivalent to 21 percent of all public submissions making this recommendation. Over 20 percent of submissions from academics, community organisations, expert individuals, government and peak bodies recommended the setting of targets, with submissions from government, expert individuals and community organisations being the strongest advocates. Submissions with an industry or union source recommended targets to a lesser extent.
The setting of targets for the promotion of women to more senior levels would require companies to take action to train, develop and advance the careers of women in their organisations in a more targeted and systematic manner.
(Victorian Government Submission)
.in order to be able to apply the merit principle to women's recruitment, remuneration and promotion, 'special measures' such as targets (both voluntary and ultimately mandatory if significant change has not taken place) are needed, for a period. Strategies such as targets and quotas are one way of changing the dynamic and making meaningful progress on the numbers
(Submission, Expert individual)
Each organisation should be made to publish their self-selected targets or goals and report publicly on their progress towards achieving them.
(Submission, Boardroom Partners)
A changed Public Report Form should be mandated, requiring employers to complete a self-audit against a specified set of gender equality standards and measures on the basis of a yes/no/not reasonably practicable format
(Submission, EOWA )
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In their submission, EOWA argue that, with this is approach, 'organisations would be required to make and report actual progress over time against a specified number of concrete gender equality measures' and that 'the use of a clear and factual self-audit format should help employers to understand what gender equality measures are, and whether they have put into practice any of those that are specified on the form and whether they are also reasonably practicable.' (Submission, EOWA)
Other relevant proposals include:
...;employers be required to collect, analyse and report on specified gender equality data including gender pay gaps, and set targets for change over three to five years, publish annual evaluations and provide non-discriminatory justifications for lack of progress should this occur
(Submission, Peak body)
The AEU strongly supports the notions of 'special measures' to achieve gender equality, as the concept recognises that the removal of discrimination per se` does not equate to equality.
(Submission, Australian Education Union)
While many made the broad suggestion that targets for equality be established, a number recommended that targets should be industry specific.
Through its submission, EOWA recommended that industry-specific targets be established and that these include targets relating to the composition of boards, senior management and middle management. EOWA's submission describes targets as indicating 'appropriate and realistic averages as well as what is considered to be best practice'. In this way, there can be recognition that what constitutes compliance in one industry constitutes best practice in another.
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During her individual interview, Susan Halliday proposed that targets be set at the firm level:
I agree that there should be targets to drive performance...;Mandatory quotas across the board do not work. If we are to do this properly I think it is better for each organisation to look at its own issues and develop goals and strategy to improve, based on its own unique set of circumstances. They need to report their numbers every year and be compared to their last year, and compared to like organisations. All of these figures need to be public.
(Interview, Susan Halliday)
The ACTU proposed a different process for setting targets:
Clear, achievable minimum standards, linked to the key employment matters, should be developed to assist employers to achieve acceptable EEO practices and to articulate community benchmarks of acceptable practices...The development of the standards should be conducted through the establishment of industry tri-partite employer, union and government EEO bodies...To achieve compliant status, an organisation should be able to demonstrate they meet the minimum standards
(Submission, Australian Council of Trade Unions)
A number of other submissions went to a greater level of detail, including to suggest that there be a standard set of gender equality targets that apply to all reporting organisations and a subset that are tailored to particular industries.
Obligation on respondent organisations to undertake a gender equality audit and report annually against specified targets on progress towards both gender equality standards set by the Agency and additional ones identified within the organisations
(Submission, Dr Sara Charlesworth)
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A small number of submissions were specific in identifying what the targets should be. These submissions focussed on women in leadership roles and suggested:
The Commission considers that the Australian Government has a leadership role to play, and should therefore immediately adopt a mandatory national benchmark of 40% gender diversity on all government boards within three years. For other boards, there should be a two stage reform process. Initially, it should be mandatory for all publicly listed companies to adopt three and five year disclosable targets for improving gender diversity on both their boards, and at senior executive level. The exact target set can be at the discretion of the employer during this first stage. These targets should be reported to the ASX through the annual reporting process. ASX companies should also be required to report on their compliance with employer reporting obligations under the EOWW Act, by way of exception reporting. After five years, if there is a lack of substantial progress, the Australian Government should consider introducing mandatory gender quotas for boards, at least on ASX publicly listed companies, with penalties for failing to meet quotas within a specified period of time.
(Submission, Australian Human Rights Commission)
Requiring organizations to set three to five year targets for the representation of women at all levels of the workforce and making these targets publicly known would improve the requirements.
(Submission, Katie Spearritt and Diane Ryall)
Other submissions supported the notion of voluntary targets, such as a submission from a government source which proposed that organisations have 'standard outcome-based measures...workplaces could be encouraged to adopt voluntary targets in the common areas of women on boards and women in executive positions'.
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Other suggested targets included:
A more coherent and productive methodology would be to use an industry's average pay-gap as a baseline starting point. Organisations could then be required to, a) meet this baseline figure, and/or, b) show sustained improvement over a period of time. A reasonable level of change in an organisation's average pay gap may be in the vicinity of 1% - 1.5% over a three year reporting period. Requiring organisations to show sustained improvement over a period of years will compel organisations to respond promptly to gender segregation that is driving a gendered pay gap.
(Submission, The University of Queensland)
Targets and eventually quotas should be set for women to attend training, to attend conferences and to be chosen as speakers at conferences.
(Submission, Women's Electoral Lobby VIC)
While the support for regulation in the form of targets was relatively broad and consistent across the submission categories, some employer representative groups expressed particular opposition to their introduction.
Similarly, the submission by ACCI suggests that regulation should be reduced:
employers resist their workplaces being used to engineer social attitudes or to experiment with policy that is ahead of community attitudes
(Submission, Australian Chamber of Commerce and Industry).
Such opposition was not expressed to the same extent by representatives of some employers. Instead submissions from companies appeared to be more concerned with reducing the reporting burden through only reporting on key indicators. Some submissions from industry even supported the introduction of targets as a means of focussing efforts.
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The absence of adequate and appropriate targets and benchmarks linked to an enforcement regime allows organisations to be seen to make progress, when the reality is otherwise...;our preferred model would be the establishment of voluntary targets for organisations (e.g. specific year-on-year improvements in female representation at leadership and senior leadership levels)
(Submission, Industry)
Participants at the Adelaide roundtable did not go so far as to recommend or set performance indicators or targets, but rather suggested that industry benchmarks be set which could be used by employers to guide their practice. The Melbourne roundtable supported a stronger emphasis on measurable outcomes and performance measures in reports, enabled through the completion by reporting organisations of a balanced scorecard in relation to particular indicators. It was further suggested that these indicators be linked to the measurement of leadership performance.
The Perth roundtable suggested that reporting could be improved by being more outcomes focused, and by reducing the 'onerous task of analysis'. Suggested 'real' outcomes included 'how many women received a promotion after attending leading training'. In relation to the setting of strict targets, Perth roundtable participants felt that there were advantages and disadvantages in setting targets for organisations. No consensus view was reached.
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A significant number of individuals interviewed advocated for simplification of reporting requirements, including by requiring reporting organisations to only report on a concise set of indicators. In addition, most interviewees were supportive of measurable targets being identified by organisations as part of the reporting process. Most also agreed that there should be some industry benchmarks set to guide the target setting.
...;existing reporting obligations are too onerous for small and medium sized entities. Simplify the reporting to a concise set of key indicators
(Interview, Dr Alex Birrell)
Quotas
A number of contributors to the review advocated an approach that would involve setting mandatory quotas, for the representation of women at various levels in organisations within a fixed timeframe and backed by penalties and sanctions. Some stakeholders believed that quotas should be set and enforced immediately, while others argued for an approach that would involve a government commitment to put in place quotas if satisfactory progress is not achieved against voluntary targets within a three to five year timeframe.
The setting of quotas was recommended by nine percent of public submissions received. As a proportion of the category of submitter, academics were the strongest advocates of quotas. In its submission, the ACTU advocated for the introduction of quotas.
The ACTU supports the introduction of quotas for the number of women on boards. Quotas are required because we do not currently have an equitable, merit based process of appointments to boards, or senior management feeder roles.
(Submission, Australian Council of Trade Unions)
[It is recommended that] all reporting organisations be required to achieve a 40 percent representation of women directors within five years or face mandatory quotas backed by enforceable sanctions
(Submission, Anne Summers)
It won't change until the Government legislates minimum percentages of women in the board room.
(reporting organisation survey respondent)
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It is important to note however, that the introduction of quotas is not universally supported. Opposition to the introduction of quotas was received from employer representative groups, including:
CCIQ is not supportive of introducing quotas as a means of enhancing female participation in the workforce or on Boards.
(Submission, Chamber of Commerce and Industry Queensland)
Other stakeholders, while supportive of targets, did not support an extension of those to quotas, which they perceived to be inconsistent with the principle of appointment or promotion on merit and therefore problematic.
Before quotas are imposed in the private sector, we would like to see other, less extreme, mechanisms adequately tested in terms of impact. For instance, it may be possible and beneficial to secure gender balance at the input stages of key people processes (e.g. ensure sufficient female representation in job candidate shortlists, talent pools, leadership development cadres etc) and the throughputs - i.e. the gender balance of decision-making groups in relation to these inputs (e.g. selection, development or talent review panels). In time, such interventions should result in more diverse (but still merit-based) outcomes.
(Submission, Industry)
The Sydney roundtable determined that a target of at least 40 percent female employees at all levels of an organisation be set and be required to be achieved within a three to five year period. Failing this, mandatory quotas backed by sanctions and penalties should be introduced. Linking progress towards targets with performance measures for senior executives was also suggested by a number of people at the Sydney roundtable.
In the employee survey, of the total number of proposals for change, only three percent of employee survey respondents indicated that quotas for female staff would have the greatest impact in achieving equal employment opportunity for women.
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Public reporting
The recommendation that results of the reporting process should be made public came through relatively strongly in the public submissions received. A number of submissions proposed that organisations take it upon themselves to publicly report:
..Require organizations to publish agreed metrics annually on their website through their corporate governance and sustainability report.
(Submission, Katie Spearritt and Diane Ryall)
A small proportion suggested that reporting be linked to other publicly available reports. For publicly listed companies, it was recommended that public reporting should be included in the Corporate Governance Statement within the annual report lodged with ASX. Consistent with ASX Corporate Governance Council Guidelines, this reporting should be on an 'if not, why not' basis. This was put forward as providing flexibility for companies in certain industries where the target may be ambitious.
A number of roundtables recommended linking the reporting process to existing mainstream reporting requirements, including ASX and Corporations Act reporting requirements. This was argued as a way of streamlining the overall reporting process for organisations and, in the case of ASX-listed companies, would make reporting outcomes public. Creating public accountability for progress towards workplace equality for women was considered an important component of future reporting requirements. Participants at the Melbourne roundtable also agreed that reports be made publicly available, primarily to facilitate research and a more accurate understanding of equal employment outcomes across organisations.
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Realign and extend reporting timeframes
Strong support was received through the public submission process for the reporting process to be aligned with other business reporting requirements and to be extended beyond the one-year timeframe.
Two main suggestions were made with respect to more appropriate alignment of reporting processes. These were to align the reporting process with the financial or academic year or to align the reporting process with businesses' strategic planning cycles, which were reported to take place every three to five years. With regard to the latter proposal, it was argued that businesses set three to five year goals in devising their strategic plan and that goals relating to equal employment opportunity for women should be incorporated within these broader business goals. As is the case with general business goals, organisations would track their progress towards the equal employment goals on a regular basis.
The Equal Employment Opportunity Network of Australasia (EEONA) recommends that the reporting requirement is linked to three to five year organisational strategic plans with interim annual progress reports provided to EOWA.
With regard to the timeframe for reporting, roughly the same proportion of submissions commented that the frequency of reporting was optimal as those that commented that the frequency was not optimal (14 percent and 15 percent respectively). Of those that stated that the frequency was not optimal, the majority indicated that it was too frequent and recommended that organisations be required to report every two or more years, instead of annually.
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Thought could be given to reducing the reporting frequency to biennial. There are three reasons why this may be useful from an organisational perspective: It reduces the reporting burden on organisations It is a more realistic timeframe for organisations to develop and implement new EO initiatives, track their functioning and evaluate their impact. It falls into line with the biennial publication of the EOWA report and provides a clear link between the data and the information in the report. EOWA could give consideration to requiring annual submission of a workplace profile, but an evaluation of workplace programs only biennially.
(Submission, Industry)
Every two years would enable the results of initiatives to be assessed and adjusted before reporting.
(Submission, Industry)
A requirement to provide a detailed report every three years would allow organisations sufficient time to identify the barriers that women face in entering and / or advancing within the organisation, develop and implement policies and procedures to address these barriers, and to then meaningfully evaluate these initiatives. Data gathered over the longer time frame would reflect a substantial implementation phase and be of far greater value in effecting lasting organisational change.
(Submission, The University of Queensland.)
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A further observation was that the reporting cycle does not coincide with any other reporting cycles, making automated data collection difficult and costly. The issue of the lag in being able to identify progress was also raised, including the sentiment that workplace programs that are implemented often take more than one year to see any results.
Participants at the Perth roundtable recommended that reporting be reduced from the annual timeframe to a five-year period.
When asked what aspects of developing a report they would change, a significant proportion of respondents to the reporting organisation survey commented that the reporting timeframe should be extended. This view was linked to the perceived significant reporting burden faced by organisations in developing their report and the view that relatively little could be achieved within the one-year timeframe. A minority of reporting organisations recommended that reporting be linked to or incorporated with other reporting requirements and that targets become part of the reporting framework.
Bi-annual reporting for organisations smaller than say 300 or 500 as the cost and effort means we run out of time to implement the actions within a year and then suddenly the next report is due.
(reporting organisation survey respondent)
Either narrow the requirements per year or move to reporting every 2nd year.
(reporting organisation survey respondent)
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However, extending the reporting timelines was not universally supported, with some stakeholders indicating that the current waiving requirements (that allow longer reporting timelines) should be removed or tightened. Fourteen percent of public submissions indicated that provisions for waiving reporting requirements are not effective. A number of recommendations for change were made. The most highly recommended change was to remove the ability to have reporting requirements waived, which was made by five percent of submissions. This sentiment was also expressed during individual interviews.
The current approach to granting waivers from reporting is not viable if we want real progress. Waivers do not establish an incentive for continually improving outcomes, or for changing attitudinal beliefs in an ongoing way.
(Interview, Susan Halliday)
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Content of reports
While only a small proportion of public submissions discussed the clarity and usefulness of the content of reports, the majority that did indicated that the requirements regarding content were not clear or useful. The most frequently suggested improvement to the content of the report was to make the requirements more specific. Overall, 10 percent of submissions recommended that requirements regarding content be more specific. This is compared to four percent of submissions who recommended that requirements regarding content be made less specific. The recommendation to make content requirements more specific is aligned with the abovementioned proposal of a number of submissions to move towards outcome-based reporting that may include targets.
Simplification of the reporting requirements was also raised by a number of reporting organisation survey respondents through free text responses. Among the comments received were:
It would be great if consideration could be given to simplifying the report so that it is much easier to follow as well as complete.
(reporting organisation survey respondent)
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7.1.7 Compliance mechanisms - Penalties and sanctions
The topic of compliance mechanisms, including penalties and sanctions, was addressed at length through the consultation activities. While there was no clear consensus on the proposed way forward, there was a general view that the existing compliance mechanisms of being named in Parliament and government procurement limitations are not strong enough. Among the more commonly proposed solutions to engender compliance were random compliance auditing and strengthened government procurement penalties.
Through the public submission process, there was a clear indication that existing penalties and sanctions are insufficient to ensure that the objectives of the legislation are met. Sixty-seven percent of submissions addressed this issue, with 58 percent of these stating that existing penalties and sanctions are not sufficient . Only 13 percent of submissions indicated that exiting penalties and sanctions are sufficient. The remainder made no direct comment. Of those 50 submissions that did not feel that existing penalties and sanctions were sufficient, 86 percent (43) indicated that naming in Parliament and the government procurement penalty are not strong enough.
Of those submissions that discussed alternative enforcement mechanisms, 84 percent posited that there are alternatives available. The most frequently suggested alternative was compliance auditing of reporting organisations. Twenty-eight submissions or 55 percent of submissions that felt there were alternatives available, recommended compliance auditing as the alternative. The next most favoured alternative (15 submissions and 29 percent of those who stated an alternative) was to prevent access to government grants by non-compliant organisations. Monetary sanctions were the third most favoured alternative (14 submissions).
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Four of five roundtables were supportive of strengthened compliance mechanisms for the EOWW Act. The recommendations to change enforcement mechanisms largely reflected those proposed through the public submission process.
Of the interviewees who commented on compliance mechanisms, the majority felt that existing penalties are not strong enough. Among the suggestions to strengthen compliance with the EOWW Act were for EOWA to assume audit powers to check the accuracy of reporting organisation reports, for EOWA and the FWO to work in partnership to ensure compliance checks are performed, for a mechanism for certification of compliance to be developed, and for the extension of the naming in Parliament penalty to include naming of organisations that fail to report, those that provide poor quality reports as well as those that do not make sufficient progress towards meeting their targets / benchmarks. In addition, enhancement of the government procurement penalty to cover all government expenditure in the private and non-government sectors, including industry assistance and funding grants, was proposed. The proposal to introduce compliance audits was the most commonly suggested initiative of those interviewed.
The survey of employees also found that penalties for non-compliance was a relatively popular means of achieving more in relation to equal employment opportunity for women. When asked what more could be done, seven percent of survey respondents suggested clear and enforceable laws and reporting, including penalties for non-compliance. This was the fifth most popular solution in relation to this question. Penalties for non-compliance was a more popular solution amongst private sector respondents compared to public sector respondents.
However, there was opposition from employer representatives and some individual employers to increasing enforcement and sanctions.
(Body) recommends that sanctions in the Act not be increased.
(Submission, Industry)
We are not supportive of enhancing enforcement powers and sanctions
(Submission Chamber of Commerce and Industry Queensland)
The current system appears to be working when you look at the ratio of organisations completing the report, compared to those not completing the report (2,500 to 12).
(Submission, Industry)
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Compliance auditing
In arguing for compliance auditing, submissions pointed to deficiencies in the current content and submission of reports as well as the ability of EOWA to follow-up in order to check the veracity of reports. As indicated in section 5, a number of submissions argued that some reporting organisations submit and re-submit a paper-based report that can largely be a copy of the previous year's report and EOWA has no means to test whether this is the case.
The suggestion to conduct random audits of reporting organisations was recommended as a way of compelling organisations to report accurately under the legislation. Submissions recognised the resourcing requirements and additional functions for EOWA that would be associated with enhancing compliance auditing. The most common proposal with regard to efficiently undertaking this additional function was for it to be a role of the FWO, which already has compliance functions. A small number of submissions recommended that EOWA receive additional funding to enable it to undertake compliance auditing.
If the Agency were to be empowered and funded to undertake the compliance functions of any new regulation then I would support the ACTU recommendation that this role remain with the Agency.
(Submission, Dr Sara Charlesworth)
The Government, through the EOWA Agency, should have the option to conduct targeted auditing of organisations through detailed analysis of programs, focus groups and interviews with senior executives each year.
(Submission, Katie Spearritt and Diane Ryall)
In order for the Agency to be more effective it requires greater power to investigate and inspect workforce data with supporting legislative enforcement for compliance and for the taking of remedial actions where required...;the OFWO could be empowered to action compliance for the Agency. Where continued refusal or failure to comply exists the Office of the Fair Work Ombudsman could inspect organisations and make orders seeking compliance
(Submission, Community and Public Sector Union - State Public Services Federation Group)
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In relation to the recommendation for FWO to undertake compliance checks on behalf of EOWA, it was noted that this could be aligned to FWO's existing organisational audits where it checks compliance with the FWA.
The attractions of having the EOWW Act administration and Agency operations under the umbrella of FWA, are: It would then become a more comprehensive one stop shop in regard to employment matters. The auditing of companies and enforceability of the Act seem to be a natural extension of the auditing work of the FWO. Their approach, which is incentive based, educative and conciliatory in the first instance, and then to apply penalties if the employer disregards their responsibilities under the Act, would be appropriate. Employers are likely to be more responsive as they are more familiar with the jurisdiction and because they respect the FWO as a strong regulator. It further deepens the employment contract relationship. It gives EEO practice stronger status and makes it more mainstream and not as easily dismissed as 'just women's stuff'. One area of doubt is the unknown expertise on discrimination matters in the FWO, and it would be our recommendation that the FWO work closely with the Federal Sex Discrimination Commissioner to ensure a full understanding of the issues. Fair Work Australia, so long as it sufficiently well resourced, seems to be well placed to extend its operations to incorporate the current roles of the EOWA, and to enhance them with the auditing and workplace visiting powers of the FWO.
(Submission, Union)
Functions of reporting, compliance and waiving all be strengthened and armed with the proper supporting legislation to make the Agency's operation meaningful. This may require enforcement proceedings through the OFWO.
(Submission, Community and Public Sector Union - State Public Services Federation Group)
Routine compliance audits conducted by the OFWO involving organisations whose corporate structure employs 100 or more people should include...verification that compliance records and reports have been made directly available to employees and accessible to workplace unions. Where this is found not to have been done, it should be the subject of the usual compliance processes employed by the OFWO...Affected organisations should be able to contact the Agency for any support and assistance they might require in complying with the EOWW Act.
(Submission, EOWA)
(Submitter) believes that there is a role for Fair Work Australia in auditing and enforcing employer reporting obligations and providing reports on outcome
(Submission, Union)
The enforcement of rights and obligations under the EOWW Act must be enforced efficiently by a body equipped with the capacity to investigate and enforce compliance. This role could be performed by a specialist section of the Fair Work Ombudsman...Alternatively, the Sex Discrimination Commissioner could perform this role, were the government to adopt the broader enforcement powers advocated for under the review of the Sex Discrimination Act.
(Submission, Australian Education Union)
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In discussing compliance auditing, a number of submissions linked this recommendation to the proposal to set targets for women's opportunity in the workplace. It was seen that random auditing would be a way of accurately determining how much progress organisations had made towards their targets.
Opposition to the introduction of compliance audits was evident to a small degree through the consultation process.
Audits by EOWA could prove invasive and result in high costs for the company.
(Submission, Industry)
Strengthen government procurement measures - restricting access to grants
A number of submissions saw scope to strengthen the existing government procurement compliance mechanism. Proposals focussed on government departments having direct access to compliance records, which they would need to check as part of the procurement process, as well as broader use of government purchasing power, including extending this penalty to all government grants and industry assistance funds.
In the submissions, 12 percent suggested that the procurement provisions could be strengthened by expanding the eligibility for government grants to include EOWW Act compliance. Expert individuals identified this alternative in their submissions the most (33 percent), governments (30 percent), unions (22 percent), and peak bodies (21 percent). A smaller proportion of industry submissions made this suggestion (eight percent).
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The value of public sector contracts to private sector businesses is significant, and represents a powerful lever for gender diversity progress - it could be used far more extensively as a commercial inducement and stimulus for action-
(Submission, Industry)
...;More stringent application of Government procurement processes, to ensure that all government contracts including government grants and assistance are denied for non-compliant organisations
(Submission, Government of South Australia, Premier's Council for Women)
Extend the current sanction of non-compliant organisations ineligibility to tender for government contracts to all forms of government assistance, including grants and funding
(Submission, Australian Council of Trade Unions)
Certified compliance with the Women's Equal Employment Act for a minimum of three years be a 'condition of participation' to be eligible to take part in Australian Government procurement programs, or to receive grants or other forms of government assistance.
(Submission, Anne Summers)
Through their submission, EEONA proposed that government agencies should verify potential contractor's compliance with the EOWW Act to address the issue that 'effectiveness of the procurement ban is dependent upon the relevant Government agency which is procuring the services/goods being aware of the EOWA determination'.
An alternative suggestion was made by a number of submissions, including by the Community and Public Sector Union State Public Services Federation Group and EOWA, that the onus of proof should rest with reporting organisations looking to tender for government business. The Community and Public Sector Union recommended that a system of contract procurement certification be implemented where the onus of proof of compliance rests with the employer.
EOWA also proposed that governments of states not already supporting Commonwealth contract compliance for the EOWW Act should be encouraged to join those governments that have already joined themselves to the arrangements.
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7.2 The role of EOWA
Comments on practical solutions to improve the role and functions of EOWA were captured through consultation activities. This included EOWA's role in implementing reporting requirements, EOWA's role in education and awareness raising, EOWA's role in administering awards and EOWA's data collection role.
Irrespective of the function under consideration, the resourcing of EOWA was raised through consultation activities, with the most frequent comment being the need for greater levels of resources, particularly where EOWA's role and functions are to increase. Existing resourcing levels were consistently cited as being inadequate. In addition, EOWA's relationship to government was often raised as a critical factor in relation to any function to be undertaken. The consistent message was that EOWA needs the backing of government regarding the issues that it addresses, yet also a degree of independence from government in undertaking its functions.
7.2.1 Implementing reporting requirements
Overall, consultation activities identified a preference for EOWA to have stronger enforcement and compliance powers to enable improved implementation of the reporting requirements. It was also suggested that EOWA's implementation of reporting requirements could be improved through it gathering and publicising performance information generated through the reporting process. A greater role for EOWA in advising reporting organisations on their development of workplace programs and annual reports was discussed to a lesser degree through the consultation activities.
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Strengthen enforcement and compliance powers
Strengthening the enforcement and compliance powers that EOWA has available to it to implement reporting requirements was consistently recommended through all consultation activities. The most frequent proposal made regarding stronger compliance powers was for EOWA or another suitable body to undertake compliance auditing.
A significant proportion of public submissions provided recommendations in relation to EOWA undertaking compliance monitoring as a means of enhancing its ability to implement reporting requirements.
EOWA should be empowered to conduct a verification process to establish compliance by an employer, group of employers, or industry's compliance with its obligations under the EOWW Act, including with employer reporting obligations. EOWA should provide the SDC/Commission and the FWA/Ombudsman with the results of verification processes conducted under the EOWW Act, subject to any privacy considerations
(Submission, Australian Human Rights Commission)
The focus should be placed on 'self regulation' of organisations but with strong enforceable powers the agency can also investigate and prosecute for non-compliance and push organisations who fail to take responsibility for particular problems
(Submission, Industry)
We suggest Canada as a comparable OECD benchmark...;(which) gives the Canadian Human Rights Commission the power to audit the performance of public employers employing more than one hundred persons to ascertain whether they are complying with the legislation.
(Submission, Academic)
AFUW believes that consideration should be given to implementing Recommendation 12 of the Final Report of the Regulatory Review of the Affirmative Action (Equal Employment Opportunity for Women) Act 1986, which was that the Agency should have an audit power in the form of workplace visits 'to confirm waived status or to operate as a further step between reporting and naming where reports appear to be unsatisfactory.' Reports from employees, mentioned above, could be part of this audit process.
(Submission, Australian Federation of University Women)
EOWA could do more spot audits of employers. They could identify areas for improvement i.e. particular industries and study them in detail and develop a capacity to understand and drive change in that priority industry.
(Interview, Louise Tarrant, Katherine Whitty, and Elaine Hudson, Liquor, Hospitality and Miscellaneous Union)
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The Sydney roundtable proposed that EOWA undertake more frequent assessments of companies' workplans, and that consideration be given to this function being undertaken by an external audit firm. The Sydney roundtable was also supportive of random compliance audits, which it recommended be undertaken as part of the reporting process. Participants at the Adelaide workshop agreed that EOWA should tighten reporting requirements, particularly with regard to its assessment of reports. Heightening assessment criteria and providing more detailed guidelines were offered as mechanisms to tighten the reporting requirement. The Melbourne roundtable supported increased enforcement powers for EOWA, including more sophisticated methods for ensuring compliance. It was proposed that consideration be given to the FWO undertaking an audit function for EOWA.
Through the individual interview process, differences of opinion were identified in whether EOWA's compliance powers should be strengthened as a way of improving its implementation of reporting requirements. While some saw a need for reporting requirements and their implementation to be strengthened, others saw this approach as an ineffective way to drive organisational change.
Random auditing of reporting organisations was suggested by some interviewees to check the accuracy of data presented in reports. A minority of interviewees went further to suggest that reporting be linked to other audit requirements, including ASX reporting requirements and corporate legislation. Some interviewees also advocated for the FWO to partner with EOWA and undertake the role of compliance checks as part of its audit of organisations.
The proposal that EOWA's role enforcing reporting requirements be strengthened was largely unsupported by employer representatives who were interviewed. While there was recognition that the reporting process may not be achieving significant change, improvements centred on reducing or removing reporting requirements and refocussing EOWA's role to one of education and positive incentive arrangements.
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Similarly, strengthening of the implementation of reporting requirements was not supported by a significant number of reporting organisation survey respondents through their free text survey responses. Instead, it was proposed that the focus of EOWA should be on education.
Although their services are of a high standard, now that the majority of companies fully recognise the value of women in the workplace perhaps it is time for EOWA to assume an advisory role as opposed to a policemen's role.
(reporting organisation survey respondent)
EOWA currently acts as an audit function and reporting requirements are developed without reference to the needs of individual organisations. EOWA would be more effective if it provided advice, support and tools and acted as a forum to share information.
(reporting organisation survey respondent)
The nature of the Act will prohibit this to some extent but a more partnership approach as opposed to an inspection approach may facilitate greater change.
(reporting organisation survey respondent)
No amount of reporting can change the predominant attitude of men in our society; you only have to look at Government, political and bureaucratic, to see the magnitude of female under representation in any high profile position.
(reporting organisation survey respondent)
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The survey of reporting organisations identified a small number of organisations advocating for EOWA to undertake a compliance auditing role as part of its implementation of reporting requirements.
An auditing function with genuine consequences for non-compliance would give the process more influence.
(reporting organisation survey respondent)
I believe the EOWA is trying it's best however there does not appear to be any face-to-face follow-up or check made on what is written within the reports. Basically, a business/organisation could concoct a report, just to appease the EOWA.
(reporting organisation survey respondent)
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EOWA measuring and publicising progress against targets or performance indicators
A number of public submissions advocated for instituting league tables based on the relative performance of organisations against targets or other performance criteria. It was suggested that a role for EOWA could be to consolidate this information and present a 'top 200' and 'bottom 200' in relation to organisations' achievement of or progress towards the targets. League tables and other forms of public disclosure of achievement are argued to play directly into business competitiveness. As such, this idea was put forward during consultation activities as an effective and efficient means of encouraging change.
Among the entities that are supportive of public league tables is the ACTU. Through its submission, the ACTU urged an increased transparency of employers' equal employment opportunity targets and progress, including published league tables.
A government agency (not necessarily EOWA) should be appointed and funded to produce a national report card on gender diversity every year, showing the percentage penetration of women in senior leadership and board roles in the top 100 and 200 companies, as well as the top 10 professional service firms, major governmental organisations and major not-for-profits. It could also show pay differences between men and women in key leadership roles and 'name and shame' the Chair of the top 100 companies with less than two women on the board, and CEO's of companies with less than two women in their top teams. Only when the public spotlight shines on gender diversity will a significant majority of leaders begin to take action.
(Submission, Diane Grady)
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The Brisbane roundtable discussed the use of gender pay audits as part of the reporting requirement and suggested the introduction of a requirement for EOWA to collect data on the number of requests for flexible working arrangements as well as the number approved. The Sydney roundtable advocated for EOWA to establish and require reporting on good practice benchmarks. Participants at this roundtable were also supportive of EOWA making performance against the benchmarks, as identified through annual reports, public.
A small proportion of individuals interviewed suggested that greater transparency of the results of organisations' reports should be enabled through the use of publicised league tables, which EOWA would produce as part of its implementation of reporting requirements.
Establish a small number of performance indicators for companies to report and establish and publish league tables of performance.
(Interview, Ann Sherry AO)
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Streamlining the reporting process
Through consultation activities, it was recommended that EOWA streamline the reporting process as a way of realising efficiencies in its own operation and as a means of supporting reporting organisations to report. This was proposed to be through a more structured report form, changes to the reporting timeframe, as well as an electronic reporting facility.
If we had a cycle of reporting like enterprise agreements expiring every 2-3 years, half the agency can review reports on a monthly basis for compliance and the other half of the agency can directly support companies with a consultation service.
(Submission, Industry)
The public submission by EOWA recommended that simplifying reporting and evaluation of reports could be achieved by specifying areas (standards/measures) against which organisations need to report to EOWA. EOWA also recommended the provision of a more specific structure, including length of report for organisations to follow.
One roundtable - the Brisbane roundtable - made a recommendation relating to streamlining the reporting process by introducing an 'e-reporting' tool, which would allow reporting organisations to upload their annual reports to EOWA electronically.
A number of individuals who were interviewed recommended that the reporting form be more structured. In relation to the process of reporting, it was suggested that lodgement be streamlined through greater use of electronic and online facilities. One interviewee suggested that the facility developed should have a two-way function enabling reporting organisations to login, upload data and track their progress as and when they wished.
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Advice in development of reports and workplace programs
Across the consultation activities, a small number of people commented on ways in which EOWA's role in providing advice and guidance in the development of reports and workplace programs could be improved. One proposed solution was for EOWA to re-direct more time and resources to advising poorly performing industries and, at the same time, reduce the resources it dedicates to better performing industries. This recommendation came out of the Brisbane roundtable and was expressed by a number of reporting organisation survey respondents as well as through the public submission process.
We could do without the reporting exercise. Surely they should be concentrating ALL their efforts on the worst 10-15% of organisations; and so exempting the majority of fair or good companies
(reporting organisation survey respondent)
More lobbying to Government on behalf of organisations rather than compliance focus on already compliant organisations is required.
(reporting organisation survey respondent)
EOWA suggested that it provide in depth feedback in a more targeted way - to all marginally compliant organisations and a random selection of remaining moderately and highly compliant organisations58.
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7.2.2 Education and awareness raising
Consultation activities consistently highlighted education and awareness raising as a key continuing role for EOWA. In general, recommendations focussed on heightening EOWA's capacity in this respect. Practical suggestions relating to this enhanced function centred on EOWA taking a lead in commissioning relevant research and analysis, EOWA creating stronger links with industry, EOWA developing more tools and resources for business and EOWA publishing league tables of reporting organisations' performance in relation to achieving equal employment opportunity for women.
EOWA to undertake more education and awareness raising
The importance of EOWA's education and awareness raising role was consistently cited in consultation activities. Within the public submission process, education and awareness raising was discussed as a valuable function of EOWA by the largest number of submissions. Thirty-nine percent of submissions stressed the importance of EOWA undertaking education and awareness. Across the categories of submitters, there appear to be different levels of value placed on this function with submissions from government, expert individuals, industry, peak bodies and union sources more frequently citing education and awareness raising as an important function compared to submissions from academics, community organisations and individuals.
Awareness is one of the greatest tools available to fight prejudices that clandestinely feed inequality in the workforce.
(Submission, Disability Services Australia)
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Through its public submission, a peak body proposed that section 10 of the EOWW Act be amended to strengthen and widen the role of EOWA in connection with education. The peak body suggested the Quality Part-Time Work Guidelines that were introduced in Victoria for the legal, hospitality, retail, nursing and Local Government sectors as an example of education and information programs that provide industry-specific advice.
The importance placed on education and awareness raising as a role for EOWA led many submissions to advocate for EOWA to undertake more awareness raising for the community. Seventeen percent of submissions made this recommendation with the provision of commensurate resourcing being a key enabling factor. The second most highly recommended solution was for EOWA to undertake more awareness raising for reporting organisations (13 percent of submissions).
That EOWA undertake more awareness raising was only a focus of discussion at the Melbourne roundtable. It was suggested that a campaign on the issue of equal employment opportunity be undertaken as a means of raising awareness.
The individual interview consultation activity identified strong support for a strengthened educative role for EOWA as did the survey of reporting organisations.
Generally I think EOWA makes a significant difference and I would like to see their mandate expanded to more public promotion of the cause.
(reporting organisation survey respondent)
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For some interviewees, and particularly those from employer groups, it was suggested that EOWA's role should focus on education and awareness raising and not on regulation:
The focus of the Act and EOWA moving forward should be on education and on regulation to a lesser degree. Once regulation has achieved a cultural or behavioural change, it should be withdrawn over time. In particular, EOWA should enable greater collaboration and knowledge sharing between reporting organisations, particularly increasing ideas such as equal opportunity programs.
(Interview, Daniel Mammone and David Gregory, Australian Chamber of Commerce and Industry)
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EOWA leading relevant research
Through the public submission process, a number of different areas of targeted focus for EOWA's education function were proposed. While some expressed satisfaction with the attention given to the proportion of women on boards and in senior positions, others felt this focus was too narrow. A notable number of contributors to the review saw a critical role for the articulation of a clear business case for achievement of equal employment opportunity for women. A small number of participants advocated for greater attention to be given to women in small-medium sized enterprises, arguing that this is where the bulk of the female workforce is employed. Enabling a greater research focus on females experiencing dual disadvantage, including those that have a disability, those from a CALD background or those who are Indigenous, was also recommended.
While the Agency has had a valuable focus on the advancement of women in senior positions, it has not been adequately resourced nor had political support to address the various manifestations of organisational 'blokey cultures' that work to denigrate women and keep them 'in their place'. There has also been very little focus in activity by the Agency on sex segregation within organisations or on the concentration of women within organisations in lower status and casual jobs.
(Submission, Dr Sara Charlesworth)
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Through the individual interview process, proposals were made regarding effective ways of communicating the business case.
The business case arguments at an organisational level should not be the core of an argument for equality, because they are difficult to sustain. Instead, social justice and economy wide arguments of increased productivity and broader economic benefits are more convincing. Particularly in the broader context of an ageing population, declining birth rates, and declining male participation, the focus should be placed on assisting women to improve their position/s in the workplace. Also the benefits that are derived from measures that improve equality in the workplace can benefit men as well, and while women are at the spearhead of change, it can result in better outcomes for everyone
(Interview, Professor Marian Baird and Alexandra Heron)
Through its submission, a community organisation suggested that EOWA should launch a major community and business campaign about the benefits in implementing more family-friendly work policies to attract and retain women. The submitter further suggested that EOWA focus on wrongful gender-based stereotyping and gender-based violence in its guidelines for employers and research and educational programs and that the Office for Women focus on public awareness about reasonable pay rates for work that is done by women, as well as conducting additional research.
The Brotherhood of St Laurence advocated for economic modelling work to be undertaken to cost the value of women's work in sectors where women predominate. The submission went further to suggest that an assessment of what can be done to support organisations to enable appropriate pay levels be performed.
Within its submission, EOWA recommended 'A nation-wide community education program on pay inequity' and consideration for 'Targeted education of young people in schools about the gender pay gap'.
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Consideration could be given to EOWA undertaking analysis of the position and experiences of women in small and medium business to determine if additional initiatives are required.
(Submission, Government)
The (EOWW) Agency should develop, in partnership with Career Advice Australia, the Career Industry Council and unions, targeted career advice regarding the gendered nature of the Australian labour market and information on the persistent gender pay gap across industries and occupations.
(Submission, Australian Education Union)
EOWA could have organisations provide information on the cultural and linguistic diversity of a workforce, the number of women who indicate that they identify as Indigenous and/or Torres Strait Islander and potentially provide information on their accommodations for female staff members with a disability. Such expanded data would acknowledge the additional and specific disadvantage of women in these minority groups... such additional requirements could be phased in over time and with sufficient lead to enable the development of human resource systems to a level of sophistication where such data can be captured.
(Submission, The University of Queensland)
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A notable number of submissions stressed the importance of education beginning at a young age, including being introduced through school curricula. A submission from a peak body source suggested that EOWA develop guidelines and learning material for schools, as 'changes in attitudes that reflect the acceptance of the principles of Equal Employment Opportunity also require change at early stages of personal development'.
The Australian Education Union (AEU) recommended that male and female students need educating in the ways inequality manifests in employment, otherwise they will be oblivious to the gendered implications of their choices and that education needs to start at school.
The Brisbane roundtable made the specific request for EOWA to clarify its definition and measurement of the dimensions of inequality, including gender segregation and pay equity. The Brisbane roundtable also suggested that EOWA provide information on the lifetime earnings of women including superannuation, as well as the impact of working part time on life-time earning.
The Sydney roundtable recommended that EOWA work more closely with the Sex Discrimination Commissioner and Fair Work Australia to expand its educational ability, and that EOWA disseminate more robust information on the business case for equal employment opportunity. The Melbourne roundtable recommended that EOWA enable a greater level of education around gendered stereotypes within high school and primary school curricula.
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The majority of the individuals interviewed saw a key role for EOWA in demonstrating a comprehensive business case for change and in disseminating this business case as widely as possible, particularly to industry. A number of interviewees expressed ideas relating to components of the business case that should be focussed on by EOWA. These included highlighting the specific economic benefits of having more women in senior positions, men taking up flexible working arrangements, paid maternity leave, part time work and returning to work after maternity leave.
In addition, a number of reporting organisation survey respondents advocated for targeted education on specific issues, including to attract women into traditionally male-dominated industries and to focus on school-age education.
The employee survey found a strong preference for cultural change and education for the community and employers as a mean to achieve equal employment opportunity for women. This solution was stated most frequently of all solutions proposed. Promoting and celebrating diversity was also seen as a way of achieving improvements in equal employment opportunity for women.
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EOWA creating stronger links with industry
A number of submissions recommended a stronger relationship between EOWA and industry as a way of having a greater influence over the behaviour and compliance of reporting organisations, including by raising awareness and demonstrating the business case for equal opportunity. Proposals for building closer relations with industry centred on EOWA facilitating forums and business networks where best-practice initiatives can be shared. Additionally, proposals were made for EOWA's leadership to include individuals with a high profile in the business sector.
EOWA and the Office for Women should seek to create partnerships with business and employer organisations to campaign about equal opportunity for women. Information in newsletters, on websites and in industry magazines as well as in seminar presentations are effective ways of reaching much of the small business sector.
(Submission, Peak body)
EOWA needs to change the way it interacts with business to be seen as a 'partner' and a body that focuses on practical solutions ie needs to move away from its focus on 'admin'.
(Submission, Industry)
Ideally, EOWA assessors would possess expertise in particular industries and be able to meet with senior leaders and key HR representatives to discuss the report, assessment and most importantly, next steps in more detail.
(Submission, Qantas Group)
CEO of EOWA should have significant business experience and be able to command the attention of CEO's and challenge traditional Australian workplace culture.
(Submission, Katie Spearritt and Diane Ryall)
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The Perth roundtable proposed the establishment of employee blogs by EOWA to facilitate sharing of 'success stories' between reporting organisations. To ensure that relevant information is disseminated in support of women in the workplace, the Brisbane roundtable advocated for the use of social marketing campaigns and the provision of networking opportunities to be coordinated by EOWA. Support was also provided at the Sydney roundtable for EOWA to hold regular gatherings of business leaders for the purpose of discussion of equal employment issues, including strategies that work. There was a suggestion at the Melbourne roundtable for EOWA to play a greater role in brokering partnerships within industry to enable the sharing of best practice initiatives.
Better education about the issues and improved communication of the business case were seen as benefits arising from greater links with industry that could be established by EOWA conducting regular and high profile business forums and networking opportunities, and also by EOWA being led by an individual recognised by the business community. One interviewee stated that a leader who has come straight out of industry or who has significant and recognised industry experience will be able to 'open doors' (Interview, Juliet Bourke, Chair Equal Employment Opportunity Network of Australasia). A further means of strengthening EOWA's relationship with industry was proposed to be through the secondment of EOWA staff into businesses.
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EOWA developing more tools and resources
In discussing EOWA's functions, submissions indicated that the development of tools and resources was a critical role for EOWA. In fact, this role was the second most frequently discussed role for EOWA in terms of its importance moving forward. Twenty-three percent of submissions saw this role as one of EOWA's most valuable and one that should be strengthened.
Develop 'national gender equality indicators, tools and support for employers and information informing employees about their rights in the workplace'.
(Submission, Government)
A submission from a community organisation recommended that EOWA be resourced to develop a gender equity balanced scorecard with Key Performance Indicators for managers as a tool to enhance managerial accountability. In addition, Professor Ed Byrne of Monash University proposed that EOWA should provide more self-auditing tools for employers.
To support broader analysis of progress towards equal employment opportunity, it was suggested that a publicly available tool be developed as follows:
A publicly available dataset for each reporting organisation in a format similar to AWIRS (Australian Workplace Industrial Relations Survey) would prove more useful for measuring change. Such a dataset would have individuating information removed and crucial information coded in a way that would enable quantitative statistical analysis to be conducted. Publicly available information in such a format would allow for a more detailed scrutiny of the employment patterns of women in all reporting organisations and would provide valuable information about the work-life balance provisions currently available in Australian organisations.
(Submission, The University of Queensland)
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In order to address the barrier that many employers, particularly line managers and HR staff, are not sufficiently trained in how to design and implement flexible work arrangements, it was suggested that EOWA focus on training to specifically develop skills in this area. This was a focus of discussion at the Perth roundtable.
Support for additional tools and resources to create and track change was recommended as a means of building the capacity of reporting organisations. Capacity building proposals included provision of assistance with record keeping, particularly advice on the most appropriate IT system to support this. It was also suggested that tools and resources be targeted, including for first-time reporting organisations, and for particular industries. One interviewee also recommended that specific tools to effect change in selection procedures, return to work provisions, promotion and pay equity be developed.
Through the reporting organisation survey, proposals were made for enhancements to the tools and resources developed by EOWA.
I believe a good website and advisory service is essential for woman and employers who need support and advice.
(reporting organisation survey respondent)
A frequently made comment regarding the workshops undertaken by EOWA was that they are prohibitively expensive, particularly for smaller organisations and those from the not-for-profit sector.
The cost of access to workshops is a major inhibitor for our organisations participation in events as we are a 'not-for-profit'.
(reporting organisation survey respondent)
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The Adelaide roundtable saw scope for free access to training by small businesses, however, recognised that this would require additional funding for EOWA. A number of other recommendations were made to reduce or remove the cost of these workshops for organisations to enable greater levels of participation.
Workshops should be free or cost minimal as the EOWA reporting is mandated by Government. At present it is a little like the Tax Office charging you to lodge your tax return, even though you are required to lodge one.
(reporting organisation survey respondent)
Would like to see public training courses for all employees about how to treat people in the workplace (inclusive behaviours) and cover off items around harassment in the workplace.
(reporting organisation survey respondent)
7.2.3 Citations and awards
Proposals for change relating to EOWA's administration of citations and awards focussed on greater levels of transparency in the award process, including publicised disaggregated organisational scores against award criteria, as well as raising the profile of the awards, tiering the awards and tightening the award criteria.
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Greater levels of transparency in the award process
Across the public submissions received, a frequently cited proposal for improvement to the citations and awards related to greater transparency in the award criteria.
In her submission, Anne Summers recommended that it is important to 'end the charade of government giving awards to companies that are barely compliant (and sometimes in breach) of even the watered-down legislation that currently exists' and that 'Awards should be conferred by an independent authority that has no jurisdiction over the legislation' (Submission, Anne Summers).
In their submission, a community organisation stated that criteria for determining who receives a citation needs to be more transparent. The submission recommended a public ranking of reporting organisations against set criteria showing where organisations are strong and where they are weak.
To enable greater levels of transparency in the awarding of the Employer of Choice citation, it was suggested by a small number of individuals interviewed that organisations' performance in relation to the award criteria be made publicly available. In this way, the strengths of organisations would still be visible.
Raising the profile of awards
To address the concern that existing awards do not carry enough significance, it was suggested that their profile be raised. This recommendation was made by a small proportion of individuals through consultation activities and related to the Employer of Choice citation for women and the Business Achievement awards.
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Tightening of award criteria
Across the public submissions received, a frequently cited proposal for improvement to the awards related to tightening of the award criteria.
A submission from a peak body noted serious concerns with the Employer of Choice for Women award, which related to the lack of detail as to the statistics that are required for the award. Another significant concern raised was the non-disclosure of details of the extent to which citation winners meet or exceed the pre-requisite benchmarks to enable comparison by potential employees.
We would also like to see the abandonment of the entry gate criteria for EOC applications, which we believe is counter-productive. Specifically, this prevents organisations who may be exemplary performers in some aspects of gender diversity from demonstrating and sharing this.
(Submission, Industry)
In their submission, Emberin stated that the requirements for EOWA awards should be tightened, and the awards turned into a prestigious event, similar to the Catalyst Awards in the US.
The Brisbane roundtable suggested a greater emphasis through the awards of recognition for organisations which employ significant numbers of women. The Sydney roundtable suggested that the awards be made more difficult to obtain to ensure that only meritorious organisations are receiving the award, and in particular that the Employer of Choice branding be more strictly controlled.
Some interviewees saw scope for a greater level of intellectual rigour to go into determination of the award criteria as a means of raising the credibility of awards.
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Awards to be tiered
Through consultation activities, it was suggested that awards be tiered as a way of recognising different levels of performance in relation to achieving equal employment opportunity for women.
We consider that the EOWWA Employer of Choice award should continue and should be bolstered. It might be appropriate for employers to be invited to obtain a certificate of accreditation at say platinum, gold or silver levels, which could then be displayed on their business promotional material.
(Submission, Union)
That the EOWWA Employer of Choice award be bolstered. For example, employers could be awarded a certificate of accreditation at platinum, gold or silver levels, similar to that which is provided to superannuation funds. This could be displayed on their business promotional material.
(Submission, Government of South Australia, Premier's Council for Women)
In their submission, the Australian Centre for Leadership for Women suggested that awards should be tiered with outstanding organisations distinguished from those that are just good.
The Sydney roundtable also recommended that consideration be given to taking a tiered approach to awards. The Melbourne roundtable recommended that awards be restructured to recognise progression and achievement, instead of just the achievement of a benchmarked level of compliance.
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7.2.4 Data collection
To address the general perception of inadequacies in the data collection currently undertaken by EOWA, a range of recommendations for improvement were made through consultation activities. These included the ability to obtain performance-related information from reporting organisations' annual reports and the ability to access other information sources. Specific recommendations were also made in relation to relevant data to be collected by EOWA.
Data collection from reporting organisations
Consultation activities saw an important source of data as being that held by reporting organisations themselves. It was recommended across the consultation activities that EOWA require performance data through the reporting process. It was also recommended that EOWA be able to request other pieces of information from reporting organisations, within reason, where required.
In its submission, EOWA proposed a new reporting framework with reporting organisations indicating progress against equal employment opportunity standards, which 'would also provide a much more data rich profile of gender equality policies and practices in reporting organisations'.
The EOWW Agency or relevant body should be empowered to require additional information from employers in order to routinely undertake further detailed research into a particular industry, sector or occupation.
(Submission, Australian Council of Trade Unions)
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In her submission, Mimi Zou stated that objective and comparable information on workplace programs within and across organisations needs to be produced, compiled, and disseminated publicly by EOWA. Other submissions echoed this sentiment.
Improved data collection and analysis of information received in reports is required to get a detailed accurate picture of efforts to improve women's workplace equality. This information should be public.
(Submission, Liquor, Hospitality and Miscellaneous Union)
The Melbourne roundtable supported an enhanced data collection role for EOWA, including collecting data from organisations that is disaggregated to a much greater level of detail than is currently the case. This would allow EOWA to undertake improved data analysis and gain a better, more accurate understanding of workplace equal employment opportunity outcomes.
A small number of individuals interviewed commented on how EOWA's data collection role could be improved. The most frequent proposal in relation to data collection is that mentioned under EOWA's implementation of reporting requirements - that EOWA collect data through the reporting process on organisational performance against key metrics or performance indicators and use this to track improvement.
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Links to other data sources
Through consultation activities, particularly submissions and individual interviews, it was proposed that EOWA's data collection function be enhanced and streamlined through access to other data sources. These include sources of information currently collected by government departments and agencies.
The agency charged with monitoring EEO must be able to access relevant data which may be provided by employers to other government regulatory bodies such as the Australian Taxation Office, ASIC, APRA, SafeWork Australia, WorkCover, Fair Work Australia, State Government departments and training/higher education authorities.
(Submission, Australian Education Union)
The establishment of a clearing house, or common government portal, for research and monitoring of issues related to pay equity and women's workforce participation could include findings from federal and state based inquiries and improve synergies between the efforts of EOWA, FWO and AHRC.
(Submission, Government)
The contact the FWO establishes with new and existing employers could greatly improve the available data on employers who should be reporting to EOWA and who currently are not aware of their obligations.
(Submission, Government of South Australia, Premier's Council for Women)
Recommendations made through individual interviews also included that more disaggregated data be collected by EOWA from various sources to enable it to differentiate outcomes across different industries or sectors.
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Data to be collected
Some submissions identified the specific data to be collected by EOWA. A submission from a government source recommended that regular monitoring should occur of indicators in key areas of systemic discrimination, in particular: flexible work practices; pay inequity over the life course, including women's reduced superannuation; women in leadership; occupational segregation; intersectional (dual) discrimination; impact of taxation and welfare systems on women's net incomes, workforce participation decisions and long-term financial security.
In their submission, Katie Spearritt and Diane Ryall recommend that 'key metrics should include: Percentage of women at each level of the organisation; Percentage of women in key functional areas; Percentage of women on recruitment and promotion shortlists; Comparative remuneration by level (base and bonus payments); Percentage of women in line management positions; Metrics showing how long women stay at levels in comparison to men; Turnover/retrenchment data by gender; Return from parental leave (after a minimum of 12 months); Participation rate (men and women) of flexible work hours; Confidential staff questionnaire results (as part of broader company audit' (Submission, Katie Spearritt and Diane Ryall).
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EOWA could have organisations provide information on the cultural and linguistic diversity of a workforce, the number of women who indicate that they identify as Indigenous and/or Torres Strait Islander and potentially provide information on their accommodations for female staff members with a disability. Such expanded data would acknowledge the additional and specific disadvantage of women in these minority groups... such additional requirements could be phased in over time and with sufficient lead to enable the development of human resource systems to a level of sophistication where such data can be captured.
(Submission, The University of Queensland)
The Sydney roundtable stressed the need for better quality data on the current position of women in the workplace and the business case for equal employment opportunity to be better communicated to industry
Through its submission, EOWA suggests that data be made available more broadly than is currently the case: the 'data set associated with the proposed new reporting arrangements should be made available to the Minister for the Status of Women, the Office for Women (OfW), the Sex Discrimination Commissioner (SDC), and Fair Work Australia for presentations and publications on a broadened range of gender equality matters. It should also be a resource for the academic community'.
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7.3 Incentives
7.3.1 Financial incentives
Some contributors to the review advocated the provision of financial incentives through the taxation system as a means to both support greater compliance with EOWA requirements and to provide a reward for progress. Others advocated that specific funding assistance programs should be offered to organisations to assist them to implement measures that improve the position of women in the organisation.
Through the public submission process, a number of submitters proposed the use of financial rewards through taxation incentives as a means of compelling organisations to make meaningful change. These recommendations for taxation incentives were often linked to the achievement of progress towards industry or organisational targets.
Incentives ... by way of tax relief should be investigated to encourage small employers in particular to comply with any obligations imposed on them.
(Submission, Peak body)
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Some argued that this approach was a more positive system, e.g. rewarding compliance by providing taxation offsets for corporations that demonstrate genuine progress, rather than punishing non-compliance.
CCIQ is supportive of further exploring the idea of tax incentives for employers who positively contribute towards the objectives of the Act
(Submission, Chamber of Commerce and Industry Queensland)
Government subsidies and tax concessions should only be available to organisations which have EEO plans which have been successfully implemented
(Submission, Women's Electoral Lobby VIC)
At the Sydney roundtable, participants broadly agreed that there should be stronger incentives for organisations to be exemplary leaders in the field of equal employment opportunity, rather than merely complying with the EOWW Act, which could include tax incentives. The Melbourne roundtable also discussed the effectiveness of financial incentives, particularly to assist small business to implement equal employment opportunity practices. The Perth roundtable noted the view that incentives and positive reinforcement need to be in place as some organisations do not have anything to lose through the current compliance structures. The Perth roundtable also considered a proposal for tax breaks for 'good organisations'.
Some interviewees also argued for taxation incentives as a lever for change, which are linked to either the investment they make in equal employment opportunity, or the outcomes that they achieve.
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A program to encourage EOWW would be for companies to provide key metrics (number of women employed, pay, women in senior positions) through their tax return and demonstrate improvements in those metrics and/or meet targets (equal pay, equal numbers of women in lead roles) then they are eligible for a tax rebate. Entities that meet the benchmark indicator and are profitable could, for example, receive 1-2% tax benefit while those businesses (start up/growth) who have a negative cash flow, could receive cash back (% of their expenses). Companies who do not apply are not disadvantaged or penalised. And the program is accessible to small and medium sized enterprises as well as large corporates.
(Interview, Dr Alex Birrell)
In order for business to adapt and redesign jobs (to increase the availability of quality part time roles), and to avoid a backlash against the employment of young women, it is necessary to consider the incentives that are made available for business to re-structure their organisations. This needs to support the stability of companies, for example by providing tax or other financial benefits.
(Interview, Chris Ronalds SC)
Financial incentives, particularly for smaller organisations, could be given further thought, particularly along the lines of the DEEWR Small Business Fresh Ideas program. These need to be designed so that they encourage long term change, and perhaps could focus on organisations that have achieved cultural change and also recognise executives who are leading that change.
(Interview, Samantha Edwards and Tanya Zuccarino, Australian Industry Group)
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7.3.2 Other government programs and assistance for women
Many stakeholders also raised issues with the broader policy and program framework which have an impact on women's capacity to participate and achieve equal outcomes in the workplace. Often stakeholders recognised that the EOWW Act is one part of the broader policy and program framework, and some argued that other levers should be used to improve outcomes for women in addition to, or instead of, imposing requirements on industry to effect change.
For example, ACCI argued that government must also recognise its role in making improvements for working women through its taxation arrangements, welfare support, and funding of childcare services.
Regulation is but one of a number of policy levers that Government has at its disposal. ..Other important levers include funding measures that address female participation in the workforce (ie. child care, maternity services, tax and benefits system etc).
(Submission, Australian Chamber of Commerce and Industry)
In reference to the issue of a lack of suitable childcare, a number of proposals for change were made. At the Perth roundtable, on-site, employer-funded childcare was identified as an effective lever to attract and retain women employees.
In the employee survey, when asked what more needed to be done to improve equal employment opportunity for women, four percent of respondents identified greater access to affordable and appropriate childcare. All of these respondents were women, and most were in full time employment and had dependants. Also in response to this question, five percent of respondents identified that access to paid maternity or parental leave should be provided.
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7.4 Institutional arrangements
The stakeholder consultations considered the role of various Commonwealth Government agencies that have functions related to achieving equal employment opportunity for women. As detailed in section 5 above, most stakeholders believed that the effectiveness of EOWA is limited by its available powers and resources. Most stakeholders however, supported the retention of EOWA as a separate stand-alone agency. Some proposals were also made to change the administrative responsibility or portfolio location of EOWA, to clarify the respective roles of different agencies and to increase the degree of coordination between them.
There were three proposed options that recurred through the consultations with respect to the institutional arrangements and the structural location of EOWA that has responsibility for administering the (amended) EOWW Act, namely that EOWA:
- be merged, or located in a portfolio, with other agencies that deal with anti-discrimination matters, such as the Australian Human Rights Commission;
- be merged, or located in a portfolio, with other agencies that deal with employment matters, such as the Department of Education, Employment and Workplace Relations, the Fair Work Ombudsman and Fair Work Australia; or
- continue to exist as a stand alone agency, however, that its independence be increased and its portfolio location moved to central government or the employment portfolio.
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On balance, the weight of opinion among stakeholders who were consulted tended towards the third option. In the submission process, 35 submissions advocated that EOWA be retained as a separate agency, whereas 15 submissions advocated that it be merged with another agency.
A dedicated and independent authority such as EOWA is clearly still required to promote gender equity in the workplace and to ensure that companies take action to remove systemic discrimination. As an independent agency, EOWA should continue reporting to the Minister for Women's Affairs given that its focus is on promoting equal employment opportunities and outcomes for women in workplaces and given that its work will inform future government policy on women's employment
(Victorian Government Submission)
EOWA should remain a statutory authority, with a focus on promoting equality for all women at work.. (Submitter) is concerned that if it does not continue as a separate agency focused exclusively on women, an opportunity will be lost to create a high-profile advocate for women at work.
(Submission, Community organisation)
The Sydney and Brisbane roundtables supported the retention of EOWA as a separate agency. The Sydney roundtable supported its retention as a separate agency, however, agreed that it should be more independent, as a statutory authority that can report directly to Parliament. The proposal for EOWA to be re-positioned within the Department of Prime Minister and Cabinet or the Department of Education, Employment and Workplace Relations, or the Treasury, were also generally accepted. A suggestion was also made at the Melbourne roundtable to shift EOWA into the Department of Prime Minister and Cabinet.
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In the individual interviews, most people also believed that EOWA should be retained as a separate, independent agency.
EOWA should be retained as an independent and strengthened authority, and it should not be located within FaHCSIA, nor should its functions be incorporated into another agency. Ensuring gender equality needs to remain its focus. The 'mainstreaming' of the agency would be to take another step backwards.
(Interview, Susan Halliday)
EOWA...;should remain independent and not be merged with the Human Rights Commission, which has a different focus (on individual complaints and not structural barriers).
(Interview, Chris Ronalds SC)
EOWA should remain a separate entity focused on employment as a key issue for women. It should not be subsumed into other agencies of the Office for Women or Fair Work Australia. It would not be appropriate for EOWA and the Sex Discrimination Commissioner to merge, for example. One reason is that the latter focuses on individual complaints, while EOWA focuses on organisational change and is not driven by the prospect of an individual compliant. While both have an educative role and there are some overlaps, they are operating in two different disciplines.
(Interview, Juliet Bourke, Chair Equal Employment Opportunity Network of Australasia)
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Some individuals interviewed (such as Professor Mark Wooden, Dr Alex Birrell and Ann Sherry AO) did not have strong views on institutional arrangements and either saw it as a matter for consideration by government or believed it should be a secondary consideration to getting the approach and/or strategy right. Similarly, employer and industry representatives who were interviewed did not express a view on the institutional arrangements.
I do not have a view on whether to retain the Act or agency as separate entities, or incorporate them into other legislation / agencies. The focus should be on the outcome rather than process - once you have set the desired outcomes the structure and process should follow that. In relation to EOWA, it should be resourced and/or aligned to an organisation that sees it as a priority and gives it sufficient funding to do its task properly.
(Interview, Ann Sherry AO)
Of the 15 submissions that proposed that EOWA should be merged with another agency, 10 proposed that it be merged with the Sex Discrimination Commissioner and two with the Fair Work Ombudsman. Generally, all proposals were made with a similar goal to strengthen the existing institutional arrangements for discrimination and equal employment opportunity.
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AHRC should lead enforcement at a federal level, particularly at a systemic level, to ensure compliance with gender equity workplace obligations...;Further the AHRC should provide independent monitoring and reporting to the Australian Parliament and the Australian public on Australia's progress in achieving substantive gender equity, including in Australian workplaces
(Submission, Victorian Equal Opportunity and Human Rights Commission)
I do not have a strong view on particular changes that are required to the EOWW Act or the role of EOWA. I think however it is necessary to consider the ongoing role and scope of the EOWW Act and EOWA in the context of the recent changes to the employment framework which have been made. It will be important that each of the agencies in the arena have a clear focus and mandate to address the issues around employment equality for women. It would be useful to have an overarching white paper developed on how all elements of the framework fit together, including discrimination, pay equity, minimum standards, employer reporting and compliance, which is considered at the Cabinet table as a government priority going forward.
(Interview, Nicholas Wilson, Fair Work Ombudsman)
Some industry submissions and employer representative organisations also proposed mergers to reduce perceived duplication and create synergies, such as the Australian Industry Group.
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From an operational stand point, merging the functions of EOWA with another body, such as the Australian Human Rights Commission, could well result in synergies.
(Submission, Australian Industry Group)
Yes there are some overlaps and it is confusing for managers and employees to understand the 'whole system'. We would like to see some consolidation of the roles and responsibilities of the various agencies and simplification of the various obligations. We believe this would lead to better outcomes because some employers just don't understand how the system all fits together ...;We believe there is a case for consolidating its functions with the Human Rights Commission. The main reason for that is that both organisations have responsibility for promoting change and are quite small agencies. It would seem to be more efficient to combine their functions.
(Submission, Industry)
We suggest there may be opportunity for rationalisation and consolidation of EEO legislation (which could be integrated with a centralisation of lead responsibility for all equality / diversity / human rights activity in Australia within the HREOC...; [however] any rationalisation must strengthen the body which becomes the custodian of gender equality in Australia. Monitoring, driving and auditing of gender diversity across should be the main focus of this body.
(Submission, Industry)
Finally, a submission from a union source proposed the merger of EOWA with the Office of the Fair Work Ombudsman in order to strengthen its resources and compliance functions and capacity. Another union, the ACTU, recommended a closer working relationship between EOWA and the FWO, including the FWO taking on compliance activities under the EOWW Act and reporting back to EOWA.
The EOWW Act should confer power on the Office of the Fair Work Ombudsman to enforce compliance with the EOWW Act, including issuing financial penalties for: breach of the EOWW Act's requirement to lodge an EEO Report; breach of the EOWW Act's requirement of an EEO Report to address any of the EEO reporting criteria outlined in the Act; and breach of the EOWW Act's requirement for an employer to follow any of the stages of the EEO reporting process outlined in the Act.
(Submission, Australian Council of Trade Unions)
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