The legislative reform would make it easier to order wage increases in low-paid female-dominated industries like aged care and early childhood education.
Employment and Workplace Relations Minister Tony Burke told Today the changes would ensure the Fair Work Commission takes into account the difference between men’s and women’s pay when considering rules on the rate of pay.
Not only would it change how the nation’s independent wage umpire would decide on pay, but it would also force employers to be more transparent.
The reform would force companies with more than 250 employees to publicly report their gender pay gap.
“There are also decisions that we can make like at the moment in a lot of jobs, there could be contracts where you’re not allowed to tell your other worker what’s you’re earning,” he said.
“It’s a really common ploy in workplaces where women are being paid less than men.
“We want to get rid of those clauses.”
Burke said, currently, the pay gap between men and women is 14 per cent which is about $250 a week.
“If you want to get wages moving and we do want to get wages moving and we do want to get wages moving, closing that gap between men and women is really important,” he said.
Burke acknowledged there will be some pushback from businesses if the reform is pushed through.
“You need to remember though for every business, if you get wages moving across the country, yes, they’re paying more on wages but their customers also have more to spend,” he said.
“It’s not some sort of zero sum game here.”