International mechanisms to revalue women's work: research

Appendix 1 – Case Study 10 – Switzerland: The Federal Act on Public Procurement

In Switzerland there remains a GPG of 18.3% in 2019^[120], while collective bargaining coverage was 45% of employees in 2017^[121]. In Switzerland the Charter for Equal Pay in the public sector (launched in 2016) and the Federal Act on Public Procurement (FAPP) state that contracts shall only be awarded to suppliers that guarantee equal treatment of men and women in respect of pay. The awarding authority may call for checks in respect of equal treatment conducted by federal, cantonal or local authority gender equality offices. The Logib (Lohngleichheitsinstrument Bund) is a free federal self-analysis tool for companies with 50 and more employees can be used by organisations applying for public contracts to provide evidence of compliance with equal pay.

Initiative

In 2019 the Grève des Femmes or Frauenstreik involved hundreds of thousands of women across Switzerland in a protest demanding higher pay, greater equality and more respect. Following the 2019 strike, the vpod/ssp public services union wants to see equal pay auditing of all public employers with the involvement of the unions and an across-the-board pay increase for occupations and sectors dominated by women – particularly care jobs.

The Charter for Equal Pay in the Public Sector launched in 2016 requires regular monitoring to ensure equal pay within the public administration, corporations close to the public administration, public procurement or subsidies. The FAPP states that ‘contracts shall only be awarded to suppliers that guarantee equal treatment of men and women in respect of pay for workers performing services in Switzerland’. By signing the Charter authorities affirm state-affiliated companies and companies in tenders in public procurement or as subsidy bodies, implement equal pay in their sphere of influence – as employers. Signatories agree to carry out regular checks to ensure equal pay. The Ordinance on Public Procurement states that the awarding authority may call for checks in respect of equal treatment of women and men. The task of conducting such checks may be assigned to federal, cantonal or local authority gender equality offices.

The Logib (Lohngleichheitsinstrument Bund) is a free federal self-analysis tool for companies with 50 and more employees, allowing companies to check whether they comply with the requirement of equal pay for women and men. It is based on regression analysis and was recognised by the Swiss Federal Supreme Court in 2003. It uses Excel and is thus directly applicable to workplaces using payroll statistics and without extra training for the personnel. Logib can be used by organisations applying for public contracts or subsidies to provide the required evidence of compliance with equal pay. In 2017 all companies with 50 and more employees were obliged to carry out a self-test every four years under the supervision of a third party and to communicate the results to the employees.

Outcome

A business survey found that 50% of companies that carried out a self-test made adjustments, usually raising women’s wages. Together with the self-test tool Logib, the Charter was awarded the Public Service Award 2018 by the United Nations. To date, 16 cantons, 113 municipalities and the Federal Government have signed the Charter, along with 62 companies. From November 2019, following the fourth National Meeting on the Promotion of Equal Pay in the Public Sector, state-affiliated companies at all federal levels and other companies with a public mandate have had the opportunity to join the Charter. However, the effective application of gender equality legislation is perceived as the greatest challenge^[122].

Applicability

There is scope for strengthening the Public Sector Equality Duty to require that contracts are awarded to suppliers that can evidence equal pay. A free self-analysis tool could be made available for organisations allowing them to check whether they comply with the requirement of equal pay for women and men.