Review of the Equal Opportunity for Women in the Workplace Act 1999 Consultation Report
8 Conclusion
The consultation process has provided an opportunity for the perspectives of a wide range of individuals and organisations to be considered in framing future arrangements for equal employment opportunity for women: 136 submissions were received from individuals, organisations and government agencies; 744 reporting organisations and 859 employees were surveyed; five Roundtables involving 98 individuals were held around Australia; and 21 expert individuals and stakeholder representatives were interviewed.
This section provides a summary of key themes and observations from the consultation process. It begins with a summary of key findings relating to what arrangements are considered by contributors to the review, to be successful within organisations in achieving equal employment opportunity for women, and the external drivers that can influence organisations to make changes that improve the status of women in the workplace. It then outlines some of the key directions for change that were presented to the review during the consultations in relation to the EOWW Act and the EOWA. These include ideas submitted with respect to how the arrangements could be further strengthened, as well alternative views and ideas that were put forward with respect to how current arrangements could be made less stringent and less costly for business.
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Improving employment outcomes for women
Contributors to the review consider a range of measures and initiatives, at both the policy and operational level, to be effective in responding to barriers to women's employment. A significant factor, identified by both employers and employees, was the existence of a policy with respect to equal employment opportunity. Strong leadership and commitment to equal employment opportunity by Boards, Chief Executive Officers, and senior management within organisations was also widely recognised as a major enabler of change. Flexible work arrangements (so long as they do not result in position down-grading or loss of employment opportunity), providing training and development opportunities and equality and transparency around pay rates, were all seen as effective solutions to overcoming barriers.
Many of the levers for change that were identified are aimed at tackling the attitudinal and cultural barriers to equality for women in workplaces and creating incentives for organisations to implement change. Linking equal employment opportunity to overall business strategy, fostering a strong commitment at Board level, identifying the dimensions of inequality in an organisation, developing robust accountability mechanisms, demonstrating the business case for change and developing employee consultative processes, were all strategies in this category.
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'The need to prove the business case' was seen by larger organisations as an essential step in demonstrating the benefits of employing women, implementing family friendly policies and providing parental leave, however, few organisations undertake robust cost benefit analysis as part of their business strategy development process. Many, however, believe that benefits of providing equal employment opportunity initiatives outweigh the costs. This view was not always shared by employer and industry representatives, particularly in relation to small to medium size organisations.
A range of effective external drivers of change were identified by the review. Goals and targets were seen by many as an effective strategy to drive change, as were random compliance audits. These approaches were not supported by all employer and employee organisations that frequently supported the development of employee engagement strategies as a way of achieving change. The economic drivers of change, such as the need to address skill shortages, were identified as effective drivers, as was generating opportunities for organisations to compete for public recognition as an equal opportunity employer. The need to improve compliance and develop more effective accountability mechanisms was raised, and developing financial incentives in the form of subsidies, direct assistance or taxation rebates, was also suggested as a means of achieving changed practices. The role of government, and the public sector more broadly, in providing leadership to the private and non-government sectors was identified by many as a key driver of change. Similarly, the capacity of a regulatory framework to enforce change was widely recognised, however, its role in achieving equality in employment outcomes for women is not universally supported by reporting organisations or employer and industry representatives.
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Key findings on the EOWW Act
Some stakeholders, as a strong starting position, sought the re-focusing and strengthening of the EOWW Act so that it is better positioned to achieve equality for women in the workplace, rather than retaining its focus on creating equal employment opportunities. Some contributors see this distinction as fundamental to the future direction of reform, and put the view that it should be reflected in the name, objects, and possibly some new principles, of the legislation.
Several key observations related to coverage of the EOWW Act. While the EOWW Act applies to all organisations where the total number of employees in the corporate structure exceeds 100, there is a high level of non-compliance. The EOWA estimates that 4,500 or 34.6 percent of covered organisations fail to report to EOWA. Further, a large proportion of submissions to the review (37 percent) considered the current coverage of the EOWW Act to be inappropriate, with roundtable participants in particular questioning the exemption of the Commonwealth public sector and the exclusion of smaller businesses.
There were mixed views expressed about the requirement for employers to develop workplace programs to promote equal employment opportunity. While the requirement to develop such programs is generally supported, views on the effectiveness of the programs developed are divergent. An observation can be made however, that generally, reporting organisations support the arrangements for workplace programs more than reporting to EOWA, and those organisations with the highest level of compliance59 with the EOWW Act are more likely to agree that workplace programs have a positive equal opportunity impact. A further finding on this issue is that a large proportion of employees are not involved in the development of these programs, or are not aware of employee involvement in program development, and that this lack of involvement and awareness is particularly the case for women. Many stakeholders proposed changes to the workplace programs so that they are simpler, set measurable targets and actions, and provide a stronger driver for change in organisations.
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The requirement to report to the EOWA is generally regarded as having a positive influence for the development of equal opportunity initiatives in the workplace. However, this was balanced by the view of some that changes are required if the reporting process is to be more effective. A recurring theme from the review is that current reporting requirements focus on process rather than outcomes and are, as a result, largely ineffective in improving employment outcomes for women. The consultation activities also found that the process is widely considered to be time consuming and costly for organisations, and there are low levels of employee consultation and involvement in the development of reports to EOWA. There were suggestions from a range of stakeholders for the reports to be simplified, many considering that the frequency of reporting could be lengthened or better matched to other business reporting timelines, and there is some suggestion that the process of lodging reports could be streamlined by moving from manual to on-line reporting.
Most stakeholders were generally dissatisfied with the adequacy and use of the available penalties and sanctions, and the enforcement powers available under the EOWW Act. The lack of enforcement activity was highlighted as an issue in many submissions. Industry and employer representatives acknowledged the lack of penalties and enforcement activity under the EOWW Act, however they did not support any strengthening of these arrangements. The 'naming in Parliament' sanction was seen by many to be lacking as a deterrent mechanism for many organisations. Some stakeholders recommended that it be used more extensively to name organisations who fail to make progress against key performance indicators, as well as those who refuse to report to EOWA. A frequent view expressed by a range of stakeholders was that the procurement provisions were an effective mechanism, but could be implemented more consistently and expanded to apply to the provision of other government grants, industry assistance and service funding.
In contrast, there were mixed views about the existing awards schemes, with many stakeholders questioning their effectiveness, rigour and credibility. However, others see awards and citations as potentially being a powerful incentive, but recommend that the assessment process be strengthened, and consideration be given to replacing the current citation with 'league tables' of the best and poorest performers in delivering equality in employment outcomes for women.
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Key findings on EOWA
EOWA is generally regarded by contributors to the review as fulfilling its role in challenging circumstances, with its perceived constraints being the legislative framework within which EOWA operates, and the resourcing level of EOWA. EOWA's role in supporting and advising reporting organisations is valued by the majority of organisations, with feedback and advice being seen as effective. While there is concern about the capacity of the data set maintained by EOWA to measure changes in equal employment opportunity, a high value is placed on the education and awareness raising function performed by EOWA.
There was no consistent view about the most effective institutional arrangements for EOWA, or with regard to whether there is duplication between EOWA and other agencies. Many stakeholders, including expert individuals, women's organisations, trade unions and employees, believe that it is important to retain EOWA as a separate and independent statutory authority. A further view was expressed that EOWA would be more appropriately located within an alternative portfolio of government, for example within the Department of the Prime Minister and Cabinet or the Department of Education, Employment and Workplace Relations.
Of the stakeholders who addressed the issue of whether EOWA should remain as it is or merge with another agency, most stakeholders supported retaining EOWA as a standalone agency. Some stakeholders suggested that the profile, resources and powers of EOWA could be enhanced through a merger with another entity, such as the Australian Human Rights Commission or the Fair Work Ombudsman. Such a merger was also suggested as a means of realising administrative efficiencies and simplifying institutional arrangements.
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