Gender Pay Gap Report

The Gender Pay Gap (GPG) report shows the difference between the average earnings of men and women. The value of this information, not only to our organisation, but the UK economy as a whole, is overwhelming when measured to its full potential.

By considering any remuneration discrepancies which may inadvertently exist within our organisation, and using this information to put together a proactive approach to incite a positive change, we can then look to aid the issue which appears to affect many sectors of the UK economy.

The GPG figures are calculated by analysing all our employee's hourly rates of pay on a set snap shot date.

We then divide the hourly rates of pay into four quartiles to show the distribution of men and women at various levels in our organisation. Furthermore, we calculate the bonus pay and the average difference in this pay between men and women, whilst reporting the percentage of each gender which were paid a bonus.

These figures do not in any way relate to the rate of pay for a particular job, 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.

Our figures

Please find figures below relating to the snapshot date of 5th April 2017:

  • Our mean gender pay gap is 34.7%.
  • Our median gender pay gap is 35.9%.
  • Our mean gender bonus gap is 3.9%.
  • Our median gender bonus gap is 0%.
  • The proportion of male employees receiving a bonus is 80.1% and the proportion of female employees receiving a bonus is 76.5%.

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

Band Description
D - Upper
Quartile
Includes all employees whose standard hourly rate places them above the upper quartile
C - Upper Middle Quartile Includes all employees whose standard hourly rate places them above the median but at or below the upper quartile
B - Lower Middle Quartile Includes all employees whose standard hourly rate places them above the lower quartile but below the median
A - Lower
Quartile
Includes all employees whose standard hourly rate places them at or below the lower quartile

 

What our figures show

As an organisation, we appreciate that there are gender discrepancies across the marine industry. Government reporting on seafarer statistics for 2016 show only 3%* of UK Certified Officers in the UK are female, according to the Maritime and Coastal Agency. Furthermore, only 25% of UK Uncertified Officers and 32% of UK Ratings in general are female.

Our mean gender pay gap is 34.7%. This could be attributed to the fact that senior positions within the marine sector are predominantly filled by men, a situation which has grown through historical employment patterns. This is due, in part, to past cultural expectations which found women to be less inclined to travel away from home for long periods of time, therefore not developing into more senior maritime roles. Most senior roles require experience of time spent away at sea, over many years.  

Our quartiles show that there are a greater number of male employees in Bands C & D, the higher paid roles in the company, and a greater number of female employees in Category A.  This is also reflective of our sector and the historic career development of women.  We set out below how we are trying to tackle this issue.

Red Funnel are 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 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?

We know that whilst we endeavour to provide all employees with a just and transparent environment in which to utilise their skills and talent whilst being remunerated fairly, that there is work to be done to address gender pay discrepancies. However, we recognise that our scope to act is limited in some areas, for example, we have no direct control over the subjects’ individuals choose to study or the career choices that they make.

Nevertheless, we’re committed to doing everything we can to reduce the gap. With that in mind, we have already identified action points and priorities in 2018, to encourage improvement in these figures across our organisation:

  • A mentoring scheme which provides employees looking to grow their career with focussed development, considering company strategy and available opportunity.
  • Collaboration with the Merchant Navy Training board to analyse the reasons behind difficulties with recruiting women into the industry, developing ways to tackle these challenges.
  • Attending careers events locally which promote women careers in STEM and Marine industries.
  • Revising our flexible working policy to promote across the organisation and support Line Managers in offering flexible working arrangements across all levels of the business.

We appreciate that none of these initiatives will, on their own, eradicate the gender pay gap and it may be several years before they have any impact at all. In the meantime, we will continue to report on an annual basis with what is happening and what we’re doing to reduce the gap.

Declaration

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

Kevin George, Chairman & CEO, Red Funnel


 To download and print a copy of this report click here

*https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/585581/seafarer-statistics-2016.pdf