Gender Pay Gap Reporting

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Gender Pay Gap Commentary
April 2017

This statement is published in accordance with the Gender Pay Gap Reporting regulations under the Equality Act 2010 (gender pay gap information) Regulations 2017 which came in force on 6th April 2017.

This legislation requires UK employers with 250 or more employees to publish annual statutory calculations showing the pay gap between male and female employees.

The gender pay gap is not the same as equal pay. Equal pay ensures that men and women receive the same pay for carrying out the same work, or equivalent work. The gender pay gap is a simple average figure for all employees within the UK workforce, irrespective of the job that they do.

This report is for Optare Group Limited, and in line with the guidelines the data reflects payments made on the 5th April 2017 to relevant employees as defined under the regulation. The hourly rate includes base salary and other allowances, as well as individual and company performance based bonus payments received over the previous 12 months.

The results are a reflection of a high number of males employed in the business, in engineering design, field based engineers and coach building roles which is typical of an organisation operating in the UK bus and automotive sector. The business is reliant on the employment of skilled engineers, apprentice trained coach builders, painters, mechanical and electrical applications from schools, higher education or universities. 

Whilst we are committed  to gender equality and encouraging development of women in the workplace, the number of applications received from women to work in our engineering and coach building departments are very few. This is reflective of the general challenge facing UK manufacturers to encourage more women to pursue careers in engineering,  coach building, and electrical/ mechanical work.

For the purpose of gender pay gap reporting, on the 5th April 2017 the relevant population within Optare included 92% male and 8% women.  The gender pay report shows a more favourable ratio of women in the higher quartile of the business at 10% than the general ratio of 8%. The middle quartiles (bands two and three) include coach building, engineering skilled based posts and first line managers. The fourth, lower quartile is a continuation of coach builders and administration positions. 

Company collective bonus payments were paid to a higher proportion of operational employees (50.6% males) as negotiated under the Trade Union Recognition Agreement. Individual bonus payments were paid to certain roles and in the 12 months reported, where higher than the collective payments, and this has resulted in a mean bonus payment which was higher for females.