Bosses told to reveal ethnic salary gaps among staff

BOSSES will be made to reveal salary differences between their white and ethnic minority staff.

The radical plans to tackle racial inequality mirror rules introduced earlier this year to expose the gender pay gap.

More than 10,000 companies employing over 250 staff would have to publish the figures annually.

Around 10million workers would be covered. Theresa May, who will unveil the plans today, said: ‘Too often ethnic minority employees feel they’re hitting a brick wall when it comes to career progression.

‘The measures we are taking will help employers identify the actions needed to create a fairer and more diverse workforce.’

Businesses are to be consulted on the initiative – part of a nationwide Race at Work Charter. Officials say the 250-staff threshold may be raised to spare smaller firms.

Matt Kilcoyne of the Adam Smith Institute said: ‘This headline-grabbing measure will raise costs to business. Migrants may face natural barriers to success from language, and illegitimate barriers from occu-

‘Sour relations between Britons’

pational licensing and discrimination. These figures will mask the complex causes of racial inequality and be used to sour relations between Britons.’

Matthew Fell of the Confederation of British Industry said pay transparency could be a catalyst for action. But he warned: ‘Reporting must be done in a way that is supported by businesses and employees, to recognise the wide range of ethnic groups and legitimate staff concerns about intrusiveness where sample sizes are small.’

Mrs May will also set out the actions she is taking to ensure public sector leaders are representative of the communities they serve. The NHS, military, schools and police will have to set out plans to increase recruitment from ethnic minority backgrounds.

The Government is naming Karen Blackett, a senior executive at advertising giant WPP, as its Race at Work Champion. Miss Blackett, whose parents grew up in Barbados, has spoken of how her promotion was important because she is black, female and from a working-class background.