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Business professionals across the island have hailed a recent Government commitment to engage with the private sector on gender pay gap reporting as a “big step forward”.
Chief Minister Lyndon Farnham’s commitment came in a comment paper responding to Deputy Max Andrews’s proposition which was this week rejected by 30 votes to 11.
In that proposition, the backbencher had asked the Government to "to conduct a consultation with non-public sector entities on the reporting of Gender Pay and Income Ratios, with a view to presenting the findings of the consultation to the Assembly no later than January 2026".
It comes after the Government began regularly publishing income ratios across different departments.
"This demonstrates the government is willing to lead the way in the publication of gender pay and income ratio reporting," said Deputy Andrews, adding that he believed more work should be undertaken.
However, Deputy Farnham wrote in the comment paper that if the intention of the proposition was "to consult on the development of a voluntary non-legislative system of reporting", then "this is already in hand".
Pictured: Chief Minister Lyndon Farnham penned the report which commits to engaging with the public sector over gender pay gap reporting.
He continued: "Discussions are ongoing with partners in the private sector including the Diversity Network, with the intention of working together to bring forward guidance to set out expectations for reporting, and to provide a single universal framework for businesses to work from.
"The expectation is to provide government backing to private sector innovation to develop a product that is usable and relevant to Jersey and working with the private sector to generate a self-sustaining support network to assist companies to develop the knowledge and processes to report effectively."
A statement from the Government was released following the rejection which re-stated many of these points, including the desire to create a "standard reporting template" and the commitment to "tackling the gender pay gap".
It added: "We are prioritising practical action that directly addresses the root causes of gender inequality. Initiatives such as extending nursery and childcare provision, implementing a living wage, and enhancing affordable housing are designed to empower women in the workforce and promote equitable opportunities for all Islanders."
Assistant Chief Minister Carina Alves said: "Deputy Andrew’s proposition was rejected today on the basis that further consultation on reporting does not effectively address the underlying issues
"Ministers want to avoid the pitfalls of mandatory reporting, focusing instead on working with businesses to encourage voluntary reporting and improving DEI policy within their own organisation, whilst ensuring that we tackle with practical measures the gender pay gap head-on.”
But campaigners and the local Institute of Directors branch nonetheless see the Chief Minister's comments as a win.
Kate Wright – founder and member of Mind the Gap, a group of professionals in the island who are seeking to improve transparency and gender equality – responded positively to the development which she said the group were unaware was a formal commitment.
Pictured: Kate Wright is a founding member of 'Mind the Gap' (Rob Currie).
She called it a "big step forward", saying: "The Government's commitment to consult and, importantly, provide a best practice and practical framework for reporting, effectively super-boosts what we have already been doing as a campaign group: engage, inspire and support the business community to voluntarily report on their pay gaps – with mandatory reporting remaining, for the 'Mind the Gap' campaign group, a consideration if real progress is not made over the next 24 months.
"It will be vital in ensuring that employer reporting is good quality and meaningful."
"The potential to gain real traction and momentum from employers will be significantly enhanced thanks to this commitment," she added, also acknowledging the work of fellow members and Deputies Doublet and Andrews.
WATCH: Laura Morel, another member of 'Mind the Gap', produced a video about the importance of closing the gender pay gap.
Mind the Gap was formed earlier this year as an informal round-table discussion with female professionals in response to the news that the average gross hourly earnings of men are 12% higher than those of women.
Those discussions blossomed, with both men and women from many business sectors attending, and 32 members wrote to politicians urging them to support a previous proposition requiring private-sector companies to publish their gender pay gap.
Primary signatory Mrs Wright also invited all 49 politicians to the round-table discussion, saying that constructive open discussions with businessmen and women who have lived experience of their industries could be a new way of working and developing policy.
The group argued in their letter to States Members that improving female participation in the workplace was an "economic imperative" for Jersey in the context of an ageing population and falling fertility rates and required "urgent and meaningful action" from employers and government.
The Institute of Directors has also welcomed this commitment in a statement which said gender pay gap reporting aligned with global sustainable business practices which it encourages its members to embrace.
It added: "The IoD Jersey branch is delighted to see that the States Assembly, whilst rejecting Deputy Andrews' proposition, has recognised the work undertaken by the 'Mind the Gap' community of which our Chair Alex Ruddy is a founding member, stating that the government is "backing" private sector innovation and "working with" the private sector to "assist companies to develop knowledge and processes to report effectively".
"Gender pay gap reporting provides data that government and organisations can use to develop targeted policies. By supporting and working with organisations like IoD and the "Mind the Gap" community the government is demonstrating its commitment to the sustainable development goals."
Pictured: IoD chair Alex Ruddy was appointed to her position earlier this year.
IoD Jersey Branch chair Alex Ruddy said: "We are encouraged by the on-going dialogue with Ministers and government in respect of matters impacting sustainable economic growth, and their recognition that gender equality should be a measurable and accountable goal for businesses."
The Corporate Services Scrutiny Panel heard this month that the government has no plans to introduce legislation to close the gender pay gap – but Chief Minister Lyndon Farnham agreed to a separate meeting with the panel to allow the subject to be explored in more detail with the responsible politician Deputy Carina Alves.
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