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European Court of Justice ruling on gender and pension costs
The European Court of Justice (ECJ) has ruled that insurance companies will no longer be able to use sex as a factor to determine premiums.
The media has largely focused on the way this will affect car insurance premiums. However, the ruling will also have a significant impact on the way that annuities are calculated. An annuity is the product that most people buy with their pension fund which provides them with an income in retirement. Currently, the calculation of annuities is based on a number of factors including life expectancy. As women, on average, live longer than men, their income from annuities is less than that of men’s as it.
In theory this should be better for women approaching retirement. Research from the Association of British Insurers (ABI) shows that women’s annuity rates could rise by 6% while men’s annuity rates could fall by about 8%. The requirements will come into force on 21 December 2012.
ECJ gender ruling could see insurance premiums rise
For more information, read our guide on equal pay and pensions.
Lord Davies Review: Women on Boards
Emma Ritch from Close the Gap has provided some comments on Lord Davies Review on Women on Boards published today, 24 February 2011. The comments are summarised below.
1. The key issue of discord is quotas: Davies has recommended them as backstop measure, after a voluntary approach is tried. However, he does recommend amending the UK Corporate Governance code to require listed companies to publish, “a policy concerning boardroom diversity, including measurable objectives for implementing the policy, and disclose annually a summary of the policy and the progress made in achieving the objectives."
However, the UK Corporate Governance code is principles-based, and targeted at listed companies. Companies are not required to demonstrate that they have achieved compliance with the code.
The voluntary approach also includes; a charter; an aspiration that 'Chairmen' of FTSE 350 companies will set a target for female board members, to be achieved between 2013 and 2015; ditto for FTSE 100 companies, with the additional proviso that theirs should be at least 25 per cent (even though the evidence cited in the review suggests a ‘critical mass of 30 per cent or more women at board level or in senior management produces the best financial results’; executive search companies should develop policies around diversity.
The Recruitment & Employment Confederation (the representative body for recruitment agencies) Code of Practice does cover equality and diversity. They also have an equality pledge, developed in partnership with the Job Centre, which they ask recruiters to sign. http://www.rec.uk.com/about-recruitment/diversity/diversity-signthepledge
2. Davies reiterates the business case for increasing the representation of women on boards drawing on an increasing wealth of evidence, suggesting that, “the issues debated here are as much about improving business performance as about promoting equal opportunities for women.”
The familiar business case arguments such as capitalising on a wider pool of talent and utilising the skills and experience of women to challenge the homogeneity of decision-making in the boardroom, are all evidenced in the review as contributing to improved performance.
There are also some additional points. In Europe and the USA, women account for six out of every ten graduates, suggesting the career pipeline is leaking. Women in the UK are responsible for 70 per cent of purchasing decisions – having women on boards might open up new markets and ensure companies are responding to consumers needs effectively.
Interestingly, having a single woman on your board decreases your bankruptcy risk by 20%, and that having women on the board is negatively associated with bankruptcy across all business types, sizes of business, and age of business.
There is also discussion about women's presence improving and enhancing corporate governance, and mixed boards achieving objective corporate governance standards, and standards for strategy, earlier and better.
3. There is some interesting international comparator information in the appendices.
Close the Gap weekly (4)
This week we have events listed from Engender, WINNET8 and the UKRC and some news items on the 'glass ceiling.'
EVENTS
Tuesday 1 March, various places
Engender are hosting a series of events as part fo their Who Counts? Project. The events are across Scotland and will bring together the voices of women in poverty in Scotland. At 1pm purple and white balloons will be released from each venue.
Apprenticeship and Training Summit
Tuesday 1 March, The Royal College of Surgeons, Edinburgh.
Panal speakers include Emily Thomson, Dept. Economics and International Business, Glasgow Caledonian University. Who will bring her expertise on gender segregation in the Modern Apprenticeship Programme to the panel.
WINNET 8 Inspiring enterprise for women in Scotland
Tuesday 8 March 2011, 915pm-245pm, Surgeon's Hall, Edinburgh
Women represent 28% of business start-ups in Scotland. This event is for practitioners, managers and policy-makers who support business growth and wider enterprise and economic development initaitives. Speakers include Jim Mather Minister for Enterprise, Energy and Tourism, Tanya Ewing, British Entrepreneur of the Year 2008 and Brian Smail, Business Gateway.
Meet Online and explore the Future of Women in Chemistry and Science
Tuesday 1 March
2011 is the Internationla Year of Chemistry. There are many event across the globe celebrating the achievements of chemistry and the contributions to the well being of society. This virtual conference focuses on exploring women in chemistry and in leadership roles in science.
Women in Engineering & Technology Global Marathon
From Monday 7th to Friday 11th March 2011, the Global Marathon becomes a place for connecting girls and women in engineering and technology who “meet” via live internet chats, telephone conversations, webcasts and live events over the course of six days.
The responsibility of women in technology innovation: Why should we care?
International Women's Day Distinguished Guest Lecture By Sarah Williams-Gardener, Government Affairs Director, IBM UK Ltd. Lecture is in London.
Leading scientific researchers and artists discuss the continuing under-representation of women in science.
NEWS
Women still face a glass ceiling
FT - Women at the Top:Women on Boards: Time for the Stick
Public Sector Duty: non-statutory guidance for Scottish public authorities
Close the Gap weekly (3)
This week there is news on skills shortages, guidance from the EHRC and details of an event organised by WINNET8, a partnership project linking Scotland with Europe in tackling occupational segregation.
EVENTS
WINNET 8 Inspiring enterprise for women in Scotland
Tuesday 8 March 2011, 915pm-245pm, Surgeon's Hall, Edinburgh
Women represent 28% of business start-ups in Scotland. This event is for practitioners, managers and policy-makers who support business growth and wider enterprise and economic development initaitives. Speakers include Jim Mather Minister for Enterprise, Energy and Tourism, Tanya Ewing, British Entrepreneur of the Year 2008 and Brian Smail, Business Gateway.
NEWS
Skills gap 'hits finance growth'
Scottish Investment Operations suggest that graduates are 'ill-equiped' to work in the sector.
Exclusive: Skills warning as building jobs lost
Warnings over long term loss of roofers, masons, bricklayers to the sector.
New public sector equality duty guidance launched
The guides are for public authorities in England and for bodies with non-devolved functions in Scotland and Wales. Separate Codes and guidance on the equality duty will be available from the Commission for public authorities in Scotland (Mid-February) and in Wales (April) to coincide with the publication of the specific duty respective regulations.
EHRC have published new guidance on using the CEDAW convention
Poor work-life balance hinders women in senior roles
'New' University of the Highlands and Islands
The UKRC stays open for business
WISE and the UKRC unite for gender equality
The UKRC and WISE see this as a positive step to offering an integrated 'all-age' approach to tackling the challneges facing girls and women studying and working in SET.
Close the Gap weekly (2)
This week we have the Scottish Women's Budget Group reponse to the Draft Budget, more on Andy Gray the Sky presenter and news from Women in Technology.
NEWS
Scottish Women’s Budget Group (via Engender)
The SWBG was founded to promote gender equality in the Scottish budgetary process and it brings together women from academia, local communities, statutory and voluntary sectors and trade unions to do this. SWBG have published a response to the Scottish Government Draft Budget for 2011/12 and the Equality Budget Statement which contains commentary on sections of the budget including Justice, Health and Well-being, Education and Housing. To access the response click here: http://www.engender.org.uk/UserFiles/File/news/SWBG budget response.pdf
Glasgow Women’s Library
GWL is looking for more board members. Closing date is the 3 February. http://www.womenslibrary.org.uk/2011/01/join-our-team/
Recruiter 25.1.11
Lack of women in IT
http://www.recruiter.co.uk/opinion/mind-the-gender-gap-in-technology/1008243.article
Women in Technology (WIT)
Gender pay gap will continue unless companies ensure transparency pay and grading structures. http://www.womenintechnology.co.uk/news/gender-pay-gap-will-continue-unless-firms-are-transparent-news-800353772
IT sector set to grow five times faster than the national average. http://www.womenintechnology.co.uk/news/jobs-growth-in-it-and-telecoms-to-grow-5-times-national-average-news-800365019
City Women’s Network has launched a programme to increase the number of women in the Boardroom. http://www.womenintechnology.co.uk/news/programme-launched-to-boost-women-on-uk-boards-news-800362976
UKRC
The Institute of Engineering and Technology raises concerns about cuts to the UK Resource Centre for women in Science, Engineering and Technology and what this will mean in attracting women into SET. http://www.theukrc.org/news/2011/01/europe-s-largest-professional-body-of-engineers-supports-the-ukrc
BBC-SPORT
Sexism in football 26.1.11
The sexist comments made by Sky presenter Andy Gray towards a female assistant referee have sparked wider criticism about the position of women in the football industry and sport more generally. http://news.bbc.co.uk/sport1/hi/football/9371621.stm
Scottish Government
Budget bill debate 26.1.11
http://www.scotland.gov.uk/News/Releases/2011/01/25171303
UK Gross Domestic Product (GDP) figures
http://www.scotland.gov.uk/News/Releases/2011/01/25163509
RESEARCH
Research online (SDS)
HIE has published a series of socioeconomic profiles of areas in Scotland. http://www.scotland.gov.uk/Resource/Doc/335289/0109667.pdf
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