Will Harris Bring Us Soviet-Style Labor Boards?
How Kamala's price controls might have a first target: men’s paychecks
If you’re curious about what Kamala Harris means by advancing ‘equality’ in America, look no further than the U.K.’s labor market under the Equality Act 2010. Over a decade after its enactment, the legislation began yielding the results envisioned by its champion, then left-leaning Prime Minister Gordon Brown.
Last month, after a six-year legal struggle, more than 3,500 current and former employees of the retail chain Next won a claim for back pay of some $40 million, when a labor board determined that the primarily female store staff should have received pay ‘equal’ to that of the predominantly male warehouse workers.
Next argued that higher wages for warehouse staff were dictated by broader market rates, over which the retail chain had no control. But the tribunal dismissed this argument.
Interestingly, the court found no evidence of direct or indirect discrimination in pay between male and female employees in the same roles, nor any “conscious” or “subconscious” influence of gender on pay decisions.
Despite that, it ruled against the company because, according to attorney Elizabeth George, who represented the workers, “Next could have afforded to pay a higher rate but chose not to, and the reason for that was purely financial.”
Labor boards in the U.K. can now make discretionary decisions that might financially ruin any company. For example, they might rule that women in sales or customer service should earn the same pay as computer engineers in a software company, regardless of market demand or their contributions to the bottom line.
This trend extends beyond private businesses. Massive back-pay claims have nearly bankrupted two of the country’s largest city councils: Birmingham and Glasgow.
In Birmingham, labor boards ruled that roles traditionally held by men, such as garbage collectors, were ‘equal’ to female-dominated roles like cleaners and caterers. This resulted in a $955 million settlement — equivalent to the council’s entire annual budget.
Eventually, the situation led to the downgrade of hundreds of roles held by men and prompted strike action by the garbage collectors’ union.
Court documents from the Next lawsuit reveal how labor boards might arrive at such absurd outcomes.
According to the files, Next offered all store employees the opportunity to switch to warehouse jobs. One plaintiff is quoted admitting during cross-examination that she found the warehouse role unappealing unless it paid “a lot more money…” [Continue reading]
