WEBVTT - A 'Tangible Tool' for Fighting Unequal Pay in the City

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<v Speaker 1>So we've been pretty distracted in recent weeks with the

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<v Speaker 1>political turmoil and upheavals in the markets, and we've been

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<v Speaker 1>on picking them week by week with lots of bonus

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<v Speaker 1>episodes and bringing all the experts. But you know, meanwhile,

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<v Speaker 1>the real world has been rumbling on. And this is

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<v Speaker 1>a story we've been meaning to bring you for some time.

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<v Speaker 1>It's about equality and equal pay here in the City

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<v Speaker 1>of London. It's an issue that affects so many people

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<v Speaker 1>working around here and all around the world and really

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<v Speaker 1>does affect their lives. And there's been a case going

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<v Speaker 1>on now for some time involving one of the big

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<v Speaker 1>global banks, BNP Paribar, and a light has been shown

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<v Speaker 1>on some the practices at the bank, which has lessons

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<v Speaker 1>we think to tell all of us about the future

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<v Speaker 1>for equality here in the City. I'm Franz and Lacqua

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<v Speaker 1>and I'm David Merritt, and this is In the City,

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<v Speaker 1>Bloomberg's podcast, connecting you to the stories and the voices

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<v Speaker 1>at the heart of the City of London. So this

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<v Speaker 1>week we are taking a deep look at the paid

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<v Speaker 1>discrepancy between men and women working in finance. And there

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<v Speaker 1>was a verdict in a London court case that could

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<v Speaker 1>shine even more light on what is actually still a

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<v Speaker 1>widening gap. Yeah, for the record, he'll have no fury

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<v Speaker 1>as a woman paid less. Jonathan Browning, legal reporter here

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<v Speaker 1>in London, joins us. So, Jonathan, you're going to help

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<v Speaker 1>us unpack this very specific case of a broker at

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<v Speaker 1>BNP pair bar in London and the equal payard it

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<v Speaker 1>that was ordered as part of the verdict in her

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<v Speaker 1>equal pay suit. Before we get the details, let's just

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<v Speaker 1>paint the picture of where we are now when it

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<v Speaker 1>comes to equal pay in the city. Because the very

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<v Speaker 1>idea of women being paid less than their male colleagues

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<v Speaker 1>should have gone out years ago. But we know that

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<v Speaker 1>that's not the case. Um, So the tell us about

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<v Speaker 1>the reality of the situation now and and really that

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<v Speaker 1>this verdict is not so surprising. It's not in one sense.

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<v Speaker 1>I mean, the UK became the biggest country to zoom

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<v Speaker 1>in on this on this explosive topic of the pay

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<v Speaker 1>gap between men and women when it asked for mandatory

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<v Speaker 1>reporting on wage differences in But the point is that

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<v Speaker 1>that was a fairly blunt instrument. Um. It shows that

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<v Speaker 1>men are paid a median of nine more than women.

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<v Speaker 1>That's what men and women are on average. It's not

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<v Speaker 1>a comparison of like for light roles. It highlights the

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<v Speaker 1>extent to which women have been underrepresented. It's all we

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<v Speaker 1>have and until now is it worse in the finance industry.

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<v Speaker 1>It is. Women in in the finance industry make significantly

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<v Speaker 1>mess less than men. The pay gap is especially wide

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<v Speaker 1>in investment banking, where some of the highest paid employees

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<v Speaker 1>work and they tend to be men. But just just

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<v Speaker 1>to clarify on the data, you say, it's about the

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<v Speaker 1>medium pay, isn't it. So it's not showing you say

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<v Speaker 1>what someone doing the same job is showing. What is

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<v Speaker 1>showing a little bit as well, is that there are

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<v Speaker 1>fewer women in senior positions, which are the higher paid

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<v Speaker 1>jobs as well. Right, that's part of the problem, very

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<v Speaker 1>much so, and most employees are very keen to say

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<v Speaker 1>this doesn't mean equal pay. It's not a comparison of

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<v Speaker 1>like for like. This is about the averages that men

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<v Speaker 1>and women and and has been as I say, like

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<v Speaker 1>all that any employee has to rely on, because because

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<v Speaker 1>that's all we've had so far. But this case, what

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<v Speaker 1>what was different about this case? What sort of like

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<v Speaker 1>did it shine on the issue here at So the

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<v Speaker 1>big thing is the fact that the verdict at the

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<v Speaker 1>end and the the remedy that was ordered will go

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<v Speaker 1>into some serious detail about equal pay. But this is

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<v Speaker 1>a case about Stacy Mackin. Hello and Stacy Machin, who

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<v Speaker 1>was a prime brokerage manager at b MP Parry Back.

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<v Speaker 1>I spoke with Stacy Mackin and her barrister, Sailer Ali

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<v Speaker 1>in the Bloomberg studio about a month to go to

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<v Speaker 1>talk through these issues. She was a sixteen year veteran

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<v Speaker 1>over the bank and New Zealander who relocated to London.

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<v Speaker 1>She called this like her dream job, but she started

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<v Speaker 1>to fear perhaps that she was being paid less than

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<v Speaker 1>her colleagues for the same amount of work. BNP paraba,

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<v Speaker 1>We're paying a mail in the same role more in

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<v Speaker 1>salary and seven times the bonus for no good reason.

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<v Speaker 1>All I can say is that I felt very, very

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<v Speaker 1>lit down by the bank. I had raised a genuine

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<v Speaker 1>complaint and HI should have investigated it properly, but instead

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<v Speaker 1>they made a conscious decision to side with male discriminators

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<v Speaker 1>and cover up the discrimination. And then, I mean to

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<v Speaker 1>be clear, this is this is a prime brokerage job

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<v Speaker 1>at a big investment back. So this is a high

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<v Speaker 1>paid job, right, This is we're talking serious money here,

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<v Speaker 1>we are. I think her pay was slightly north of

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<v Speaker 1>already a hundred thousand, but that's not in this sense

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<v Speaker 1>the point, um. It's it's the fact that a colleague,

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<v Speaker 1>an exact comparator, was being paid more. So, this is

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<v Speaker 1>not only about pay discrimination, right, it's equal pay violation

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<v Speaker 1>discrimination laddish culture that came out in the trial, as

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<v Speaker 1>I imagine, people submitted evidence, and it's also females in

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<v Speaker 1>HR running a bit of a sham grievance, it is,

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<v Speaker 1>And initially a lot of the laddish culture got the headlines.

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<v Speaker 1>There were some pretty appalling episodes where at one point

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<v Speaker 1>in time she came Stacy Mack and came to work

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<v Speaker 1>the next morning to find a witch's hat on her

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<v Speaker 1>desk and that had been tribunal found left there by

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<v Speaker 1>a group of male colleagues who had been out drinking.

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<v Speaker 1>When she made comments and complaints, there was a sort

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<v Speaker 1>of familiar refrain of not now Stacy, not now Stacy,

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<v Speaker 1>and it became kind of a thing. So that was

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<v Speaker 1>what got the headlines. Perhaps initially but the actual meet

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<v Speaker 1>of the case, the concern was around equal pay. I

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<v Speaker 1>think if you are working in an environment where women

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<v Speaker 1>are but littled, then that's a pretty good indication that

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<v Speaker 1>there there is an underlying problem in giner pay. And

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<v Speaker 1>the FCO themselves have made a great play about the

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<v Speaker 1>fact that in a culture where sexist behavior is tolerated

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<v Speaker 1>is not dealt with in any way, then other problems

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<v Speaker 1>fester and misconduct is much more likely to happen. So

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<v Speaker 1>what happens now? There was what two million pounds being

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<v Speaker 1>awarded her in January, but actually the judge went a

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<v Speaker 1>step further, Yeah, she did. The award of the money

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<v Speaker 1>is a significant, significant sum. We think it's probably in

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<v Speaker 1>the top ten of all employment tribunal awards. When a

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<v Speaker 1>discrimination claim is made there is there is in theory

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<v Speaker 1>no upper limit, but this award stands out for the

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<v Speaker 1>size of it as much as anything else. But even

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<v Speaker 1>more important is this essentially an order, a requirement from

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<v Speaker 1>the tribunal for an equal pay Ordit that had never

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<v Speaker 1>happened before. I requested the equal pay order as part

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<v Speaker 1>of my remedy because I became aware that there was

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<v Speaker 1>a wider problem. But Basically, I just wanted to make

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<v Speaker 1>sure that no other woman at BNP would have to

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<v Speaker 1>go through what I went through. I mean, it's been

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<v Speaker 1>fifty odd years since the Equal Pay it and yet

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<v Speaker 1>women still have not reached pay parity, and in my opinion,

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<v Speaker 1>the UK regulations don't go far enough. I think every

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<v Speaker 1>large employer who has a material pay get should have

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<v Speaker 1>to publish the underlying data. Otherwise we're just not going

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<v Speaker 1>to make any progress. As we were saying, that's not

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<v Speaker 1>just going to show you what the median amounts are.

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<v Speaker 1>That's going to look like for like people in jobs

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<v Speaker 1>throughout the firm, where the male men and women are

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<v Speaker 1>being paied equally top to bottom, the whole way through

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<v Speaker 1>the London branch. It's an absolutely enormous undertaking and something

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<v Speaker 1>you know that employers might have done and kept private.

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<v Speaker 1>This time around, we understand that's to be made public

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<v Speaker 1>and that's the whole point, right because that's when it

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<v Speaker 1>will have an impact because people can look across and

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<v Speaker 1>see whether or not and that's just BMP Power bar

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<v Speaker 1>are going to have to do that. Any other bank's

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<v Speaker 1>going to follow suit At the moment. This is just

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<v Speaker 1>for b MP Barry Bar and they have just completed

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<v Speaker 1>the audit. They've sent it to the tribunal. But we've

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<v Speaker 1>started to see other claimants in employment tribunal cases in

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<v Speaker 1>the financial services industry asking for that too. It becomes

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<v Speaker 1>a remedy beyond the kind of personal award of of

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<v Speaker 1>of of damages, something bigger than that. And that's something

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<v Speaker 1>now that um other claimants are starting to ask of

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<v Speaker 1>the tribunal ty. So been BNPS response. So they never

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<v Speaker 1>appealed any of the decisions, both at the what's called

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<v Speaker 1>the liability hearing where they discovered the issues, and then

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<v Speaker 1>and then in the remedy hearing. Either they accept in

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<v Speaker 1>a sense that they doesn't mean to say they didn't

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<v Speaker 1>fight it tooth and nail. They thought it tooth and nail.

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<v Speaker 1>But at the end they've been very clear and they

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<v Speaker 1>said that we fell short in our duty, Tom miss Mackin.

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<v Speaker 1>They're considering the tribunals judgment to see what they can learn,

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<v Speaker 1>and they have conducted this pay audit. So BNP Power

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<v Speaker 1>Bar were showcasing themselves throughout this whole process as some

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<v Speaker 1>sort of champions of equality, even literally as the time

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<v Speaker 1>the discrimination hearing was happening, Gen Laurent won a favor

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<v Speaker 1>of CEO was publicly championing this Heath for She campaign

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<v Speaker 1>that the bank was leading the Newermatic champion and the

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<v Speaker 1>c for a large bank as a citizen and a

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<v Speaker 1>further and personally committed to drive forward the employment of

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<v Speaker 1>women made he was named a partner in the campaign

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<v Speaker 1>pledge to take affirmative action to combat discrimination, but the

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<v Speaker 1>result was literally they were also fighting tooth and nail

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<v Speaker 1>in a London employment tribunal. Surely Stacy macam must feel

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<v Speaker 1>pretty frustrated by that. I think, yeah, I think she does.

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<v Speaker 1>I think it's interesting that they said that they have

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<v Speaker 1>worked ambitiously on ginger equality for twenty years and there's

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<v Speaker 1>a huge difference between ambition and action, and their defense

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<v Speaker 1>was was what were they trying to discredit? Was that?

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<v Speaker 1>What was their defense? Yeah? I like, I mean, initially

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<v Speaker 1>they didn't even admit that there was this discrepancy. It

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<v Speaker 1>was only through the litigation process that mac and discovered

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<v Speaker 1>that a male colleague in an equivalent role was being

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<v Speaker 1>being paid twenty five percent more than she was, and

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<v Speaker 1>that discrepancy only got wider as this male colleague received

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<v Speaker 1>bonuses and a special allowance. They said it wasn't comparable,

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<v Speaker 1>but the fundamental point was that his bonus was more

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<v Speaker 1>than five times Stacy mackins she I think also feels

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<v Speaker 1>that it was noteworthy that none of the individuals at

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<v Speaker 1>BMP Parry Bar were in any way disciplined, and that's

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<v Speaker 1>that's still the case. None of the discriminators have been disciplined,

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<v Speaker 1>despite this being defined as gross misconduct by the Compliance Department,

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<v Speaker 1>and despite BMP publicly stating on the website that they're

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<v Speaker 1>burning discrimination of all types. Now, what I can tell

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<v Speaker 1>you from the remedy hearing, we discovered that all discriminators

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<v Speaker 1>received their bonuses after the judgment against them. I just wonder, Jonathan,

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<v Speaker 1>and none of this is really surprising, right, that these

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<v Speaker 1>things happen. It's shocking, but not surprising. We all hear

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<v Speaker 1>stories about either sexual harassment or women being treated differently

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<v Speaker 1>at banks. Is it overall changing or is it changing

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<v Speaker 1>at such a glacial pace that actually doesn't make much difference.

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<v Speaker 1>I mean, something like this has a real impact because

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<v Speaker 1>it is a discernible results from a individual's case. This

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<v Speaker 1>is a tool, this is a piece of this is

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<v Speaker 1>a document. We don't yet know how it's going to

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<v Speaker 1>be made available at the moment. The tribunal has that

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<v Speaker 1>has that the audit and it is considering it. But

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<v Speaker 1>we've never been in this situation before, so we don't

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<v Speaker 1>quite know how it's going to be released. This is

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<v Speaker 1>this is some something kind of tangible and that's I

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<v Speaker 1>think what makes it stand out. And you know, to

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<v Speaker 1>this point, I mean, it isn't that surprising, is that

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<v Speaker 1>there must be people classibly, people listening to this podcast

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<v Speaker 1>who have experienced that laddish behavior in the workplace, who

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<v Speaker 1>might suspect that their colleagues are getting paid more than

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<v Speaker 1>them for the same job. Are we going to see

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<v Speaker 1>many more cases now brought forward or coming to light? Well,

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<v Speaker 1>it's true. I asked the same question of Saila Alien,

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<v Speaker 1>Stacy ack Ands, Barrisster. How widespread is this problem of

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<v Speaker 1>equal pay, especially in the city. That's more widespread than

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<v Speaker 1>people would think. Nobody walks into a job thinking I'm

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<v Speaker 1>being discriminated against. Well, hopefully nobody walks in with that view,

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<v Speaker 1>but the fact is it happens. I talked to a

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<v Speaker 1>number of women who don't know what the pay gap is,

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<v Speaker 1>and it's it's difficult to tell them what to do.

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<v Speaker 1>They're acting on a suspicion that someone is treated differently,

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<v Speaker 1>and then they have to bring a claim based on that.

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<v Speaker 1>And it's only really then at the disclosure stage of

0:13:38.280 --> 0:13:41.360
<v Speaker 1>the claim when the employer is forced because they have

0:13:41.400 --> 0:13:45.200
<v Speaker 1>a duty from the tribunal to disclose everything that's either

0:13:45.240 --> 0:13:50.920
<v Speaker 1>helpful or adverse to the case for them, and most

0:13:50.920 --> 0:13:52.920
<v Speaker 1>of the time they will be right. But how many

0:13:52.960 --> 0:13:56.120
<v Speaker 1>people would really even get to that stage? As I said,

0:13:56.120 --> 0:13:59.880
<v Speaker 1>I think we'll certainly start seeing these equal pay audits

0:14:00.080 --> 0:14:03.480
<v Speaker 1>being requested of tribunals. It's a power I think that

0:14:03.559 --> 0:14:06.640
<v Speaker 1>no one really realized was available to them. But whether

0:14:06.760 --> 0:14:09.120
<v Speaker 1>or not that has a bigger impact, I mean, I

0:14:09.120 --> 0:14:11.440
<v Speaker 1>think it puts the pressure on BNP Pariba first, and

0:14:11.480 --> 0:14:14.280
<v Speaker 1>then you can be sure that every single HR and

0:14:14.360 --> 0:14:17.920
<v Speaker 1>employment relations team is now aware that that is a

0:14:17.960 --> 0:14:20.760
<v Speaker 1>remedy that could be requested of any other bank. And

0:14:20.800 --> 0:14:23.040
<v Speaker 1>that's I want to get ahead of that now, per

0:14:23.120 --> 0:14:26.880
<v Speaker 1>fix that get that shopping order right to reveal the numbers.

0:14:26.920 --> 0:14:31.440
<v Speaker 1>Because the point about this particular request was the tribunal

0:14:31.520 --> 0:14:35.880
<v Speaker 1>didn't believe that b MP PARRYBA had looked at this

0:14:35.960 --> 0:14:41.280
<v Speaker 1>issue in enough detail, it said, and BP said it had,

0:14:41.440 --> 0:14:43.000
<v Speaker 1>and then it was asked the question of whether or

0:14:43.000 --> 0:14:47.360
<v Speaker 1>not it considered bonuses in that audit, and they said no.

0:14:48.000 --> 0:14:50.360
<v Speaker 1>And so then the tribunal said, well, we simply think

0:14:50.440 --> 0:14:52.720
<v Speaker 1>there are quite there are quite likely to be other

0:14:52.760 --> 0:14:55.560
<v Speaker 1>people in that situation, and therefore we need you to

0:14:55.640 --> 0:14:58.480
<v Speaker 1>conduct this equal pay audit from top to bottom to

0:14:58.560 --> 0:15:02.800
<v Speaker 1>include bonuses. You spoke to her, So did she feel

0:15:02.920 --> 0:15:05.600
<v Speaker 1>vindicated or is it still very difficult for a woman

0:15:05.640 --> 0:15:07.400
<v Speaker 1>to stand up and say, well, actually I'm going to

0:15:07.400 --> 0:15:10.320
<v Speaker 1>go to a tribunal because then you potentially fear that

0:15:10.400 --> 0:15:13.800
<v Speaker 1>you could be unemployable afterwards. Yeah, this was a grueling,

0:15:14.720 --> 0:15:20.160
<v Speaker 1>grueling process. The first hearings were back in Stacy Mackin

0:15:20.800 --> 0:15:24.800
<v Speaker 1>basically did all the work as far as the litigation herself.

0:15:24.840 --> 0:15:28.160
<v Speaker 1>She had a barrister to advocate for her at the

0:15:28.200 --> 0:15:32.000
<v Speaker 1>actual trial like the actual tribunal hearing, but she did

0:15:32.000 --> 0:15:34.440
<v Speaker 1>all the background. She didn't have flisters to do the

0:15:34.520 --> 0:15:37.720
<v Speaker 1>kind of the grunt work she did that all. It's

0:15:37.840 --> 0:15:40.840
<v Speaker 1>very difficult for women to finance cases like this, especially

0:15:40.840 --> 0:15:44.920
<v Speaker 1>when you're paid less in salary and seven times less

0:15:45.040 --> 0:15:47.840
<v Speaker 1>in bonus. And I'll say, the only way I survived.

0:15:47.840 --> 0:15:50.560
<v Speaker 1>It was by being a litigant in person for the

0:15:50.600 --> 0:15:53.600
<v Speaker 1>majority of the time. And what that means is I

0:15:53.680 --> 0:15:57.000
<v Speaker 1>was managing the case myself behind the scenes, and Shayla

0:15:57.120 --> 0:16:00.200
<v Speaker 1>was representing me at the hearings. But if I had

0:16:00.280 --> 0:16:03.120
<v Speaker 1>to hire a solicitor to do that type of work

0:16:03.160 --> 0:16:05.800
<v Speaker 1>and to do all the communications with the bank, then

0:16:05.880 --> 0:16:07.640
<v Speaker 1>it would have cost me a fortune and I wouldn't

0:16:07.640 --> 0:16:11.480
<v Speaker 1>have been able to take this forward. I think she

0:16:11.760 --> 0:16:13.840
<v Speaker 1>is she was just she would never have said that

0:16:13.880 --> 0:16:17.560
<v Speaker 1>she was someone who wanted to be initially that advocate

0:16:17.720 --> 0:16:22.800
<v Speaker 1>for equal pay. I think she's somewhat unwilling to be

0:16:22.840 --> 0:16:26.480
<v Speaker 1>in that position, but has found herself in that position

0:16:26.520 --> 0:16:28.880
<v Speaker 1>as someone who is a bit of a standard bearer

0:16:29.400 --> 0:16:33.840
<v Speaker 1>and is now kind of someone who perhaps can advocate.

0:16:34.560 --> 0:16:38.560
<v Speaker 1>It's been quite a battle, um, a David and Goliath battle,

0:16:38.600 --> 0:16:41.280
<v Speaker 1>if you will, UM. But here I am, five years later,

0:16:42.000 --> 0:16:45.600
<v Speaker 1>have come out of it successful, and you know, I'm

0:16:45.640 --> 0:16:49.960
<v Speaker 1>proud that I can help other women and champion them.

0:16:50.000 --> 0:16:52.760
<v Speaker 1>And to the women at BMP, I guess one thing

0:16:52.800 --> 0:16:55.240
<v Speaker 1>I would say is remember that you're in a power position.

0:16:55.280 --> 0:16:58.680
<v Speaker 1>Now We've got this equel pay audit for you. You're

0:16:58.680 --> 0:17:02.120
<v Speaker 1>going to have transparency that you never had before. You

0:17:02.160 --> 0:17:05.040
<v Speaker 1>know that the regulators have already been into BMP on

0:17:05.080 --> 0:17:08.440
<v Speaker 1>the back of my judgment and um the if c

0:17:08.600 --> 0:17:12.240
<v Speaker 1>A are now requiring BMP to log all complaints. So

0:17:12.280 --> 0:17:14.640
<v Speaker 1>I hope it gives them the confidence to go out

0:17:14.680 --> 0:17:22.480
<v Speaker 1>and get the equal pay that they're entitled to. Jonathan,

0:17:22.480 --> 0:17:28.600
<v Speaker 1>thank you, thank you, thanks for listening to this week's

0:17:28.640 --> 0:17:31.840
<v Speaker 1>in the City. We'll be back next week, but in

0:17:31.880 --> 0:17:34.240
<v Speaker 1>the meantime, if you like our show, please head on

0:17:34.320 --> 0:17:37.440
<v Speaker 1>over to Apple podcast or wherever you listen to podcasts

0:17:37.480 --> 0:17:41.760
<v Speaker 1>and rate, review and subscribe. This episode was hosted by

0:17:41.760 --> 0:17:45.600
<v Speaker 1>me Francine Lakua with Dave Merritt. It was produced by Summersaidi,

0:17:45.840 --> 0:17:49.200
<v Speaker 1>with editing and sound design by Black Maple's. Special thanks

0:17:49.200 --> 0:17:55.160
<v Speaker 1>to Jonathan Browning, Stacy Maggen, and Sheila Ally.