Due to the lack of time, only Motion 12.1, which was moved up the running order and taken after item 9.1, was considered by Council.

12.1 CROSS PARTY MOTION ON ETHNIC PAY GAP

Council considered a motion as printed in the agenda on the Ethnic Pay Gap that had been moved by Councillor Abdi Mohamed and seconded by Councillor Kabir Ahmed.

Following debate, the motion moved by Councillor Abdi Mohamed was put to the vote and was unanimously agreed.

Council RESOLVED to:

Research from across civil society, including the GMB union shows that there is an Ethnicity Pay Gap, between Black, Asian and Minority Ethnic worker and non-Black Asian and Minority Ethnic workers who are otherwise equal in educational attainment. This is not only reflected in the pay of Black, Asian and Minority Ethnic workers, but this disparity is also apparent in the promotion of Black, Asian and Minority Ethnic workers in the workplace.

This council notes that:

• One in six Bangladeshi residents across England and Wales live in Tower Hamlets. Locally, the Bangladeshi population remains by far the largest in the country in both proportionate (34.6%) and numerical (107,333) terms.

• Other significant ethnic groups include White British (22.9%), White Other (14.6%), Black African (5%), Chinese (3.3%) and Somali or Somalilander (2%)

• GMB Race, the union’s self-organised groups in London, sent out a survey to Black, Asian and Minority Ethnic London workers to collect information about their Pay, Terms and Conditions. GMB Race’s survey results, while disappointing, unsurprisingly show the fact that only half of respondents thought they received equal treatment and access to bonuses, overtime, pension, and other plus payments compared to non-BAME staff.

• The TUC’s own research shows that the Ethnicity Pay Gap for minority workers has shown that students who entered the workplace after GCSE are paid 11% less than their white counterparts. Whilst those who attained degrees, the pay gap more than doubled to 23%. The race pay gap impacts the standard of living of those affected and also worsens for people who have aspired and succeeded in further education.

• The Resolution Foundation has shown that Black, Asian and Minority Ethnic workers lose out on £3.2bn a year in wages compared to white workers. It found Pakistani and Bangladeshi male graduates earned an average £2.67 an hour (12%) less, while among female graduates, black women faced the biggest pay penalty, of £1.62 an hour (9%).

• Within Tower Hamlets only 33.1% of the borough’s top 5% of earners are BAME.

• The general reporting of the pay gap is poor and recent figures show so far only 3% of employers with over 250 employees are voluntarily reporting their ethnicity pay gap.

• The Government has acknowledged this weakness and that Ethnicity Pay Gap reporting should be mandatory. However, this has not happened.

• The Women’s and Equalities Committee’s (WESC) report Ethnicity Pay Gap in February 2022 recommended that the Government should introduce mandatory ethnicity pay gap reporting by April 2023. This should be for all organisations that currently report for gender and that legislation should include the requirement for employers to publish a supporting narrative and action plan.

• This call has been echoed by the TUC.

This council believes that:

• All those that live and work within Tower Hamlets should be equally able to flourish in their place of employment. Therefore, there should be no glass ceiling because of the colour of someone’s skin. Pay, promotions, career development and progression and bonuses in all sectors should be underpinned by ability and fairness. This is vital in eradicating systemic racism and division in wider society and a cause acutely relevant to the diverse community in this borough.

• With a cost-of-living crisis hitting households hard, the diminishing earnings of Black, Asian and Minority Ethnic workers will disproportionately push many of such workers further into work poverty.

• This disproportionately affects local authorities, like Tower Hamlets, who are proud of their diverse and multicultural communities.

• All public bodies within the borough should be committed to being open and transparent about publishing its data on employees, whilst running fair, open and inclusive promotion strategies within its public sector duties. Such public data is the first step in creating awareness of the ethnicity pay gap with a view to drive change.

• Other employers across all sectors should do the same and that there should be mandatory reporting of the Ethnicity Pay Gap for all employers with 250 or more staff members.

This council resolves to:

• Adopt GMB Race’s campaign for an Ethnicity Pay Gap, including:

• Agree to annually report on the Ethnicity Pay Gap within its own organisation;

• Endeavour to regularly analyse strengths and weakness based on its own reporting, devising and implementing annual plans to proactively put in place measures to ensure there are no bars to recruitment, training, salary levels or promotion, including local schemes to give opportunities for ethnic staff to achieve promotion and occupy more senior positions within the Council;

• Work with the three recognised Councils unions locally and adopt GMB Race campaigns Ethnicity Pay Gap Charter;

• Work with council suppliers, contractors and partners to seek to do the same encouraging best practice through procurement rules as relevant, including in the contracting of any new services; and

• Call upon the Government to introduce mandatory pay gap reporting.