Gender equality - a delicate balancing act for Fair Work Australia

The challenge for Fair Work Australia is to determine how this definition applies in a workforce nearly 40 years on and what impact it will have on society and the economy. It is regarded by many as finally completing the circle on gender equity remuneration because equal pay for work of equal value still leaves a question mark over rates for women working in a predominantly female sector. The community services sector is a key industry but not the only area where this anomaly exists.

The community services case is effectively one of comparative wage justice because it deals with a claim for a wage rise, to bring this sector into line with state and local government employees who perform work of similar value.

But it also throws up the likelihood of flow-on demands to other areas where there are predominantly female employees and the national economic impact of this on business and ultimately jobs.

Upholding the pay equity claim which affects more than 200,000 workers in the social, disability and community services industry the Fair Work tribunal has called for submissions to determine the extent to which gender inequality in the community and government sectors is causing a pay gap and what other factors may be involved. It then intends to determine how much of the 25 per cent pay rise sought by unions representing these workers is justified to bridge this gap.

A decision by a full bench of Fair Work Australia will be made after a three-day hearing beginning on August 8.

Back in 1972 the Arbitration Commission decided that the community was prepared to accept the economic consequences of its ruling to broaden the equal pay platform - a move which employers had warned would cost industry more than $645 million a year.

The delicate task for Fair Work is to balance its landmark extension of gender equality against the possibility of widespread negative economic fallout, which could damage rather than enhance job prospects across the community.