In developing our Diversity and Inclusion Strategy, and publishing our first stand-alone sustainability report, we are measuring and reporting on our gender pay ratio for the first time. We have reported this broken down by significant locations of operation (countries where five percent or more of our employees are based) and by employee category.
Across our global workforce, our focus is on ensuring diversity and inclusion at all employee levels, with equal opportunities for all. Our approach is that no unexplainable pay gap exists across male and female employees for the same job role. Pay gaps within job roles may be explained by factors such as tenure, qualification levels and experience.
We internally monitor the population for any pay gaps that may emerge. For waged employees, this principle is embedded in our collective employment agreements, with consistent remuneration for each employment category irrespective of who is employed.
For our other employees, Fonterra uses a range of independent external pay market data. This data is used to benchmark our competitive pay position relative to the market, and to ensure internal consistency. We use pay bands to determine the relative pay levels across the workforce. Our pay approach is governed internally by a transparent remuneration policy.
For our senior leaders and executive employees, we again use a range of independent and external third-party pay market data. We disclose our pay data externally to stakeholders as required by the various authorities in the jurisdictions in which we operate. In New Zealand, we disclose as required by the NZX reporting requirements and other agencies.
Across our five largest operating locations the ratio of the female to male base salary is 1.09 – meaning that on average female base salaries are higher. Not shown in the table but, breaking roles down by employment category shows that 67 percent of the men working in our five largest operating locations work as operators, technicians, drivers and farm workers – roles which typically have lower base salaries than the other categories. Only 39 percent of women work in these roles, with a greater proportion of women working in more senior roles.
In the breakdown of pay ratio by country, the pay ratio is most skewed towards women in the countries with the highest proportion of men in operators, technicians, drivers and farm worker roles, and the highest proportion of women in more senior roles. In New Zealand, where the largest number of employees are based, the ratio of the female to male base salary is 0.96 – meaning that, on average, female base salaries are lower
This compares well with the national average of 0.88 percent, but still leaves room for improvement. Across all of our global businesses, our focus is on ensuring equal opportunities and working to increase the proportion of women in senior leadership roles.