Category Archives: Economic

Business, Economic, Government, Politics, Society

A cultural shift is needed to end gender discrimination

GENDER EQUALITY

IF we truly wanted to tackle the gender pay gap, we should be focussing on our biggest challenge: by encouraging women into the highest paid positions across all aspects of industry and employment.

In Scotland, only about a quarter of FTSE 100 company directors, public body chief executives, university principals, sheriffs and councillors are women. There are no female editors of major newspapers, or chief executives of FTSE 100 companies. Only seven per cent of senior police officers are women.

A way needs to be found to give women and men the same opportunities, and to create a pathway of equal chances. The senior management posts and highest-level specialist posts in so many fields are still significantly dominated by men.

One way to do this is by changing the grass roots narrative. Girls should be told from the earliest age that they can be anything they want to be; from train driver to football player; and from nuclear scientist to chief executive. Young girls should only be limited by their ability and their desire: never by their gender.

Our society needs to change its attitude, and in many cases its practices. If we are to ensure that girls get to progress in significantly growing numbers, starting in the home and then through pre-school, school and further education, these changes must now be our priority.

It is widely acknowledged that STEM careers are male-dominated. In the UK, just 15 per cent of engineering graduates are female. The figures are 19% for computer studies and 38% for maths. The shortfall is hardly surprising when we consider that only 13% of the overall UK STEM workforce is female and there are relatively few female STEM role models as a consequence.

We all need to embrace and encourage a fundamental change in attitude, and deliver a new atmosphere of equality – not just in business, but across all areas of society. By creating senior role models across traditionally male dominated sectors, we can foster a new attitude in young women, by encouraging them to pursue careers that they may not have originally considered.

Some of this change will evolve naturally through time, but society needs it sooner rather than in a generation or two. Women need to be correctly recognised and valued, and their potential realised for the benefit of our economy.

Research generated in 2015 showed that a more diverse and inclusive workforce helps business by bringing new skills, creativity and innovation, and achieving higher staff retention. Moving towards parity at top positions is not only likely to help the company’s performance; it could bring in added tax revenue. The same study estimated that closing gender pay gaps in work could add £150billion to UK gross domestic product in 2025.

Yet, there are still businesses in Scotland that pay male staff a higher rate than their female colleagues for the same job. We should be tracking down the offenders in this area, where like for like jobs are not paid the same. These disparities are unacceptable.

The Institute of Directors strongly supports the principle of equal pay and the need to create a better balance between male and female participation in the workforce so as to broaden the talent pool available to firms and employers.

Measuring pay gaps is very complex, and the use of averages can be misleading as peculiarities of industry, the nature of companies, geographies or circumstances make such comparisons unfair.

Governments should focus more on affordable and accessible childcare, encouraging more girls to study STEM subjects and providing better careers advice in schools. Policymakers should also focus on provision of leave and other measures which could help spread the strain of caring for children or the elderly.

Ultimately, a concerted effort must now be made to challenge the cultural norms: by encouraging more men and women to enter jobs that are outside conventional gender roles. Publishing crude averages alone will not tackle the root causes of the gender pay gap. There are numerous ways to improve the prospects of women in business and in other walks of life, but these must be done as part of a package of complementary measures designed to aid real and lasting change. Advancing the cause of women in the workplace and dealing with the gender pay gap are issues that aren’t going to go away until they are properly dealt with.

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China, Economic, European Union, Government, Politics, Society, United States

Trump’s trade war is a risk to the global economy

GLOBAL TRADE WAR

AN escalating trade war between China, the US and Europe could plunge the global economy into turmoil, international experts have warned.

The World Trade Organisation (WTO) said the battle of wills between President Donald Trump and rivals in China and the European Union has put “economic recovery in jeopardy”.

In a major report on the 20 largest economies – known as the G20 – WTO economists warn that angry rhetoric and rising tariffs on all sides are a severe threat.

The WTO said that G20 countries slapped £52.6billion of sanctions on trade between October and May. A total of 39 new restrictive measures were introduced to block goods from competitors – double the number in the previous report.

The WTO said: “The G20 economies must use all means at their disposal to de-escalate the situation and promote further trade recovery.”

President Trump vowed on the campaign trail to protect US jobs and industries from globalisation. He has imposed aluminium and steel tariffs on China and the EU, and hit the Chinese with extra duties on everything from bulldozers to touchscreens.

Beijing responded in kind, hitting key US exports such as its important soya bean trade. Meanwhile, Brussels has slapped tariffs on American goods, including motorcycles and bourbon whiskey.

The President is now threatening to act against Europe’s prized car manufacturers. Last week, he said: “The EU is possibly as bad as China, only smaller. They send a Mercedes in, we can’t send our cars in.”

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Britain, Economic, European Union, Government, Politics, United States

Britain dismayed at US trade war

US TRADE TARIFFS

THE Prime Minister Theresa May has attacked Donald Trump’s “unjustified” trade tariffs amid fears that Britain’s automotive industry could be hit next.

Mrs May said she was “deeply disappointed” with the US President’s decision to impose higher import taxes on steel and aluminium from Britain and the EU.

The EU has signalled that it is prepared to hit back, making a complaint to the World Trade Organisation (WTO) and finalising a list of American products it will target with tariffs of its own.

There are fears, however, that this could spark a spiralling trade war, with Mr Trump responding to any retaliation by imposing additional import levies on cars from the UK and EU.

That possibility will concern the more than 169,000 employees in the UK motor vehicle industry, on top of existing fears for Britain’s 31,000 steel workers.

International Trade Secretary Dr Liam Fox suggested that the UK may not fully support the EU’s retaliatory measures, instead saying Britain only backs the complaint to the WTO.

He said it would “take some time” for EU member states to agree their collective response, and urged the bloc to pursue compromise with the White House in the interim – even though British diplomats have previously offered their support to measures drawn up in Brussels.

Dr Fox said it would be “very, very unfortunate if we get into this tit-for-tat position, especially with one of our closest allies.”

He added: “Nobody wins in a trade war, there are only casualties. We very much regret that these tariffs were put in place.

“We think it’s of dubious legality and we will be with the EU 100 per cent in taking this to a dispute at the WTO.”

The deepening row comes just before a G7 meeting of world leaders in Quebec this week, where European leaders will air their grievances to the US President. French president Emmanuel Macron has already told Mr Trump his new tariffs on EU goods was a “mistake” and “illegal”.

Mrs May’s language was more measured, but she said: “I am deeply disappointed at the unjustified decision by the United States to apply tariffs to EU steel and aluminium imports.

“The US, EU and UK are close allies and have always promoted values of open and fair trade across the world. Our steel and aluminium industries are highly important to the UK, but they also contribute to US industry, including defence projects which bolster US national security.

“The EU and UK should be permanently exempted from tariffs and we will continue to work together to protect and safeguard our workers and industries.”

Although it is said that the Prime Minister has additional concerns over US trade tariffs, it is believed she has not expressed these in public as she hopes to tie up a comprehensive post-Brexit trade deal with the White House and does not want to inflame the situation.

The EU, which handles trade matters on behalf of the UK, has been finalising its response to the US, with measures affecting thousands of US imports to the EU worth £2.5billion, including Levi’s jeans and Jack Daniel’s bourbon, hit with tariffs of up to 25 per cent.

Cecilia Malmstrom, the EU’s trade chief, admitted the bloc was “anxious” that Mr Trump would follow through on earlier threats to impose tariffs on European cars.

She said: “This would create enormous damage, not only to the European economy but also to the US.” The US levies of 25 per cent on steel and 10 per cent on aluminium imports follow promises made by Mr Trump under his America First programme.

Earlier this year, he said: “If the EU wants to increase their already massive tariffs and barriers on US companies doing business there, we will apply a tax on their cars, which freely pour into the US.”

EU cars sold in the US face a levy of 2.5 per cent, compared to a 10 per cent tax on US vehicles brought into Europe.

How the US raised the stakes:

. Donald Trump announced in March that the EU and countries including Mexico, Canada and Brazil would be hit by increased steel and aluminium tariffs to protect US firms against imports from China, which has flooded the market with cut-price steel.

. The EU, which negotiates trade on behalf of Britain, was granted a temporary exemption while Theresa May and other leaders lobbied for a permanent reprieve.

. The UK is concerned about the effect of the measures on its resurgent £1.6billion steel industry, which employs some 31,000.

. Britain exported 350,000 tonnes of steel worth £376million to the US last year – 7 per cent of its output.

. If the EU hits back, as it has threatened to do, Britain fears that Mr Trump will retaliate by raising tariffs on cars, in a blow to the UK car industry, which employs around 169,000.

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