LLPR Weekly: CHOGM Edition - The Silent Crisis of Income Inequality

The Commonwealth Heads of Government Meeting (CHOGM) opened today in Samoa. The Commonwealth Women's Forum yesterday called on the delegation to take stronger action on gender equality. It was immediately reminiscent of recent calls by Democratic Presidential nominee, Kamala Harris, for income equality in the workplace. She went as far as to propose penalties to be calculated at a level equivalent to the wage gap. E.g. a 15% disparity should lead to a 15% corporate tax.

In Barbados, other than a few articles here and there in the press over the years, it is seemingly not an urgent matter for organized labor, the business community nor women's rights defenders. Indeed, the preoccupation in the national discussion has been around the extent to which more and more women are taking highly profile roles. It is about time, however, that someone throws down the gauntlet on the deafening silence around wage inequality.

One may ask, how ready is Barbados to have this conversation? Bringing the minimum wage back onto the front burner is surely of greater concern some may argue. Surely, we can walk and chew gum. While it is hoped the issue of gender equality will attract more than positive head nods and a few performative chats on the margins of CHOGM, more needs to be done.

Here are three steps the country can take to address this silent crisis and promote greater wage equality:

1. Implement Mandatory Pay Audits: Companies should be mandated to conduct regular wage audits to identify pay gaps and make the findings public. This transparency can create accountability within the private sector. This can be done through an environmental, social and governance (ESG) special report as a key metric on their ethical and sustainability performance.

2. Tie Tax Incentives to Gender Equality Goals: Businesses that demonstrate efforts toward closing their wage gaps should receive tax breaks, while those that continue to widen the gap should face penalties. Such a move would demonstrate the island's collective commitment to Sustainable Development Goal No. 5: Gender Equality.

3. Strengthen Labour Laws Around Wage Equity: Through the social partnership, government, labor unions, and the private sector must collaborate to introduce legislation that shifts the burden of proof away from employees in the lunchroom and onto employers, ensuring companies justify any wage differences. Indeed, the former is highly unlikely. Many are convinced any disparity discovered would be merely unhelpful information that would either result in zero changes or victimisation.

Globally, the gender pay gap stands at around 32% according to the World Economic Forum’s (WEF) 2023 Global Gender Gap Report. Also of note, the report registered a higher corresponding Economic Participation and Opportunity (EPO) gap at 39%. The WEF added that gender parity is on track for achievement in 131 years to close the income gap and 169 years to close the EPO gap.

In an age where more and more companies are making a genuine and deliberate attempt to operate their businesses through the lens of DEI (diversity, equity, and inclusion), equal pay for equal work must be high on the agenda. Barbados has the tools and reputational platform to lead on this issue but it will require the partnership of all key stakeholders — government, labour, the business community and the third sector.

This issue is undeniably a hot potato, but it can — and should — be reframed as a reputational risk for companies that fail to steer toward fairness. By fostering open dialogue, committing to transparency and implementing clear communication strategies, employers and employees can address wage disparity head-on. It is time to shift the conversation from silence to meaningful, candid discussions and bold, deliberate action. While fairs and fun walks and festivals have their place, sustainable progress comes from advancing justice.