CBI urges firms to reveal data on ethnic pay

THE CBI wants companies to report on how the pay of their black and ethnic employees compares with the salaries of white British staff. Carolyn Fairbairn, director general of the employers’ organisation, also urged firms to be sensitive to other cultures in terms of workplace social events that revolve around alcohol. She said these might freeze out some groups from networking to advance their careers. ‘Firms need to be aware of religious preference and the fact people from some cultures don’t drink so certain aspects can be alienating for them,’ Fairbairn said. She has previously pointed out that boozy late- night dinners can exclude female executives who need to get home to their families. The CBI believes that publishing data on ethnic pay gaps would identify any unfair treatment and enable companies to make sure all staff are being paid fairly.

Ethnic pay reporting is likely to be modelled on the gender gap rules introduced two years ago.

These require firms with more than 250 staff to calculate and publish the average salary and bonus figures for men and women.

The gender statistics revealed that men are paid significantly more than women, with more than eight out of ten organisations handing male staff higher rewards.

Fairbairn said reporting on Black, Asian and Minority Ethnic (BAME) employees is ‘the next frontier’.

‘The whole focus on gender and BAME inclusion is incredibly important and we want to put it up in lights,’ she said.

‘It is one of the real fundamentals in term of the economy we are trying to create, not only because of fairness but also because it improves productivity.

‘Firms that are fairer are more successful because they use the best talent and their staff reflects their customers.’

Evidence suggests BAME employees are paid substantially less well than their white British equivalents.

A study by the Resolution Foundation think tank found they are missing out on £ 3.2bn a year of pay compared with white colleagues. The foundation said the pay gap was as high as 17pc for black male graduates.

Just 3pc of employers currently measure their ethnicity and disability pay gap, according to the Equality and Human Rights Commission. It warned that lack of data on diversity in the workplace could be holding people back.