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Checkup on paycheck fairness

Posted April 11, 2011, at 9:02 p.m.
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In 1984, I opened the envelope with my second annual pay raise of my first professional job and discovered an 18 percent raise. It turns out that 6 percent was my annual raise and 12 percent was a pay equity increase. Imagine my naivete to think that this correction was normal practice for most companies. Time has taught me that equal pay for equal work is far from the norm.

On April 12, thousands of women across the U.S. will join in a national day of action against unfair pay called Equal Pay Day. The date is symbolic of the point in this year that a woman must work to catch up to wages paid a man last year. According to the U.S. Census Bureau, Maine women are paid, on average, only 80 cents for every dollar men are paid. Because women earn less, we must work longer for the same pay.

It’s estimated that the wage gap costs the average American full-time working woman between $700,000 and $2 million over the course of her lifetime.

Since 1960, the real median earnings of women have fallen short by more than $500,000 compared with those of men. Minority women face a larger wage gap. Compared with white men, African-American women make 67 cents on the dollar; Hispanic women make about 58 cents.

The wage gap also has long-term effects on women’s economic security. Women are more likely than men to enter poverty in old age. A lifetime of lower wages means women have less income for retirement from Social Security and pension plans. Women’s life expectancy is approaching 86 years, which means they outlive men by an average of three years and have to stretch their retirement savings further. Yet, the median income of older women is almost half that of older men.

A partial explanation of the wage gap is occupational segregation. According to the American Association of University Women, women are still pigeonholed in “pink-collar” jobs that tend to depress their wages. AAUW’s Women at Work report found that women are concentrated in traditionally female-dominated professions, especially in the health and education industries.

President Barack Obama signed the Lilly Ledbetter Fair Pay Act in 2009, approving equal-pay legislation that he said would “send a clear message that making our economy work means making sure it works for everybody.” This legislation closed a gaping loophole in existing fair pay laws — but it’s not enough.

The next vital bill in encouraging pay equity, the Paycheck Fairness Act, was introduced in January 2009 by then-Sen. Hillary Clinton and Rep. Rosa DeLauro to strengthen the Equal Pay Act of 1963. Had it passed, the bill would have expanded damages under the Equal Pay Act and amended its broad fourth affirmative defense. In addition, the Paycheck Fairness Act called for a study of data collected by the Equal Employment Opportunity Commission and proposed voluntary guidelines to show employers how to evaluate jobs with the goal of eliminating unfair disparities.

The bill was passed by the House on Jan. 9, 2009, but fell short last year in the Senate. Maine Sens. Olympia Snowe and Susan Collins joined their Republican colleagues and voted against cloture, tabling the Paycheck Fairness Act. This vote by the Senate jeopardizes the economic standing of Maine’s women and their families, and undermines the principles of equity and fairness.

That I once received a pay raise that set my income on a par with my male colleagues gives me hope for the future of paycheck fairness. However, without appropriate measures that expand workers’ rights in investigating and obtaining equal pay for equal work, this goal may be a long time coming for most women.

Bets Brown of South China is the public policy chairwoman for the American Association of University Women of Maine.

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  • Anonymous

    I would be interested to know if there was a rider attached to the paycheck fairness act. Collins tends to vote on party lines but Snowe is usually real good on women’s issues

  • Anonymous

    I think probably this bill has more to do with political posturing than anything else. I imagine the Snowe and Collins understand the devastating impact this legislation would have. This bill makes suing an employer extremely easy and makes the employer pay the bill with no responsibility on the part of the person doing the suing. Not only that, under this bill the “wronged employee” could set the employers methodology for determining salary. If that wasn’t enough if an employee that was the manager of a chain store (as example) would have to be paid the same in a low-wage area as the employee in a high wage area. The court system would be clogged with imagined discrimination cases.
    There are just too many economic consequences to this un thought-out piece of radical legislation.
    This legislation was held up as nonviable when Democrats had vast majorities in the House and the Senate as well as a Democratic President. If it can’t pass muster with its strongest advocates in power there is absolutely no chance of it even coming up in committee now.

  • Anonymous

    No legislation yet has closed the gender wage gap — not the 1963 Equal Pay for Equal Work Act, not Title VII of the 1964 Civil Rights Act, not the 1978 Pregnancy Discrimination Act, not the 1991 amendments to Title VII, not affirmative action, not diversity, not the Ledbetter Fair Pay Act, not the countless state and local laws and regulations, not the horde of overseers at the Equal Employment Opportunity Commission….. Nor would the Paycheck Fairness Act have worked.

    That’s because pay-equity advocates, at no small financial cost to taxpayers and the economy, continue to overlook the effects of this female AND male behavior:

    Despite the 40-year-old demand for women’s equal pay, millions of wives still choose to have no pay at all. In fact, according to Dr. Scott Haltzman, author of “The Secrets of Happily Married Women,” stay-at-home wives, including the childless who represent an estimated 10 percent, constitute a growing niche. “In the past few years,” he says in a CNN August 2008 report at http://tinyurl.com/6reowj, “many women who are well educated and trained for career tracks have decided instead to stay at home.” (“Census Bureau data show that 5.6 million mothers stayed home with their children in 2005, about 1.2 million more than did so a decade earlier….” at http://tinyurl.com/qqkaka. If more women are staying at home, perhaps it’s because feminists and the media have told women for years that female workers are paid less than men in the same jobs — so why bother working if they’re going to be penalized and humiliated for being a woman.)

    As full-time mothers or homemakers, stay-at-home wives earn zero. How can they afford to do this while in many cases living in luxury? Because they’re supported by their husband.

    Both feminists and the media miss — or ignore — what this obviously implies: If millions of wives are able to accept no wages and live as well as their husbands, millions of other wives are able to accept low wages, refuse overtime and promotions, take more unpaid days off, avoid uncomfortable wage-bargaining (http://tinyurl.com/45ecy7p) — all of which lower women’s average pay. They can do this because they are supported by a husband who must earn more than if he’d chosen never to marry. (Still, even many men who shun marriage, unlike women, feel their self worth is tied to their net worth.) This is how MEN help create the wage gap. If the roles were reversed so that men raised the children and women raised the income, men would average lower pay than women.

    See “A Response to the Ledbetter Fair Pay Act” at http://tinyurl.com/pvbrcu

    By the way, the next Equal Occupational Fatality Day is in 2020. The year 2020 is how far into the future women will have to work to experience the same number of work-related deaths that men experienced in 2009 alone.
    See http://blog.american.com/?p=30031

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