Gender Pay Gap Report - 2020

What is the Gender Pay Gap?

From 2017, any organisation that has 250 or more employees must publish and report specific figures about their gender pay gap.

The gender pay gap is the difference between the average earnings of men and women, expressed relative to men’s earnings.

The Gender Pay Gap (GPG) report shows the difference between the average earnings of men and women. The value of this information to both the UK economy as a whole and to our own organisation is of great importance when measured to its full potential and is used to develop our employment strategies.

By considering any remuneration discrepancies which may inadvertently exist within our organisation and using this information to put together a proactive approach to incite positive change, we can reduce this remuneration issue which is present in many sectors of UK employment.

The GPG figures are calculated by analysing all our employees’ hourly rates of pay on a single specified date. The hourly rates of pay are then divided into four quartiles to show the distribution of men and women at various levels in our organisation. A calculation is also made regarding bonus pay and the average difference in this pay between men and women, whilst reporting the percentage of each gender paid a bonus.

These figures do not in any way relate to the rate of pay for a particular role, or the basis for pay grading of those jobs. Instead, they tend to show the level of seniority of women in the work place and the level at which a majority are employed.    

What are our figures?

Red Funnel Group gender pay gap and gender bonus gap figures relating to the snapshot date of 5th April 2020:

  • Our mean gender pay gap is 26.7% (2019 28.1%).
  • Our median gender pay gap is 24.1% (2019 35.3%).
  • Our mean gender bonus gap is -5.4% (2019 -10.4%).
  • Our median gender bonus gap is 0% (2019 30.0%).
  • The proportion of male employees receiving a bonus is 93.1% (2019 10.9%) and the proportion of female employees receiving a bonus is 96.1%. (2019 26.2%).

Please find below the Red Funnel Group pay quartile percentages (number of employees in each):

Quartile
Males
Females
Description of Quartile
A 45%  55% Includes all employees who standard hourly rate places them at or below the lower quartile.
B  58.8% 41.3% Includes all employees who standard hourly rate places them at or below the median.
C 73.8%  26.3% Includes all employees who standard hourly rate places them above the median but at or below the upper quartile.
D 85% 15% Includes all employees who standard hourly rate places them above the upper quartile.

 

Please find below the Red Funnel Group pay Female/Male quartile distribution since the start of the GPG reporting in 2017:

The figures set out above have been calculated using the standard methodologies used in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. What Our Figures Show

Red Funnel’s mean gender pay gap is 26.7%. This an 8% improvement from 34.7% when we first reported these figures in 2017 and a 1.4% improvement from last year. This is clear evidence of Red Funnel’s ongoing commitment to reducing its gender pay gap:


Historically, the marine industry has a high level of gender discrepancies and whilst we appreciate that there are valid reasons for some of this gender discrepancy, we are proud to promote our approach to equal opportunities at Red Funnel and continue to develop initiatives to support this year on year.‘Seafarers in the UK Shipping Industry: 2020’ statistics by the Department for Transport, compiled from certification data held by the Maritime and Coastguard Agency, and data collected via the UK Chamber Shipping Seafarer Employment Survey states the following:

•    17% of UK seafarers active at sea in 2020 were female.
•    4% of Certificated Officers were female.

Red Funnel is delighted that our reflective statistics are as follows:

•    24.12% of seafarers active at sea in 2020 were female.
•    8% of Certificated Officers were female.

The government’s ‘active at sea’ statistics include any seafarers placed on furlough due to the COVID-19 pandemic and Red Funnel’s ‘active at sea’ figures also reflect this.

It is important to note that the impact of the 20% salary reduction for those colleagues on the furlough scheme on the snapshot date of 5 April 2020 will have affected these GPG results, as only ‘full-pay relevant employees’ were eligible to be included in the figures.  Therefore, only 320 out of the 528 colleagues on payroll on the snapshot date were included for the purpose of gender pay gap reporting.
At the snapshot date of 5 April 2020, the Senior Leadership Team at Red Funnel comprised of a 50% gender split.  Furthermore, across the 11 Heads of Department, 36.36% were female as at April 2020.

Red Funnel’s bonus data on the snapshot date is fairly equitably distributed, primarily due to an annual company bonus paid to all colleagues at Christmas 2019, in addition to other schemes operating within the organisation i.e. the GEM Award Scheme (Going the Extra Mile).
The band/quartile percentages divide the workforce into four equally sized groups based on their hourly pay rate, with Band A including the lowest paid 25% of employees and Band D covering the highest paid 25% of employees.  In order for there to be little or no gender pay gap, there would need to be the same ratio of men to women in each quartile. An organisation with a high ratio of men to women in Band D is likely to have a gender pay gap, as is an organisation with a high ratio of women to men in Band A.   Red Funnel’s statistics show that there are a greater number of male colleagues in Bands C & D and a greater number of female colleagues in Category A.  
Red Funnel is committed to the principle of equal opportunities and equal treatment for all employees, regardless of sex, race, religion, belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender, gender reassignment or disability. We have a clear policy of paying employees equally for the same or equivalent work, regardless of gender (or any other characteristic set out above).

What are we doing to address our pay gap?

The main contributing factor to our current gender pay gap figure is the historic nature of the maritime sector within which we operate. The previous steps taken to address our gender pay gap revolved primarily around creating equality for female mariners and attracting more women to the industry at all levels.  Our new initiatives have extended these steps to support women currently working at Red Funnel across all roles including Shoreside, aiming to ‘retain’ as well as ‘attract’ women to work within the business.  

These initiatives include:

•    Signature of the Women in Maritime Charter in March 2021.  This involves strategies to overhaul perception of women in maritime organisations through culture change:

o    Surface Level Culture
o    Imbedded Culture

The initial action points are to generate data on female recruitment performance; retention of female employees and development opportunities for females into supervisory or management roles.

•    Introduction of the Red Funnel Learning Academy (RFLA) in January 2021 – a new, modern, digital learning platform offering development opportunities and reinforcing Red Funnel’s principle of equal opportunities, equal treatment and zero tolerance policy of discrimination of any kind.

•    Update of the Flexible Working Request Policy in October 2019 to allow the right to apply for a flexible working arrangement from first day of employment (statutory entitlement from 26 weeks of continuous employment) including job sharing; flexible working hours and working from home (where appropriate).

•    Rollout of the ‘WeCare’ app in April 2021 – a free, confidential virtual healthcare service offering consultations by GP’s, Mental Health Professionals and other specialists which is  available to colleagues and immediate family members and includes support for medical, wellbeing, mental health, financial wellbeing and legal issues.  This service is offered in addition t our Employee Assistance Programme to compliment Red Funnel’s wellbeing offering.

•    Commitment to raise awareness of Menopause within the business, including the drafting of a policy and subsequent RFLA training, supporting women, Line Managers and colleagues. *

*” More than at any other time in life, women around 45-49 years are more likely to have clinical depression, commit suicide, end a long-term relationship or leave their job”.  CIPD, People Management, Accessed on-line 16.04.21

Declaration

I confirm that our data has been calculated according to the requirements of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.



 
Fran Collins, CEO Red Funnel