A JOINT call for the government to introduce mandatory ethnicity pay gap reporting was issued today by the TUC, the Confederation of British Industry (CBI) and the Equality and Human Rights Commission (EHRC).

In a letter to Michael Gove, Chancellor of the Duchy of Lancaster, the three organisations say that the move would “transform our understanding of race inequality at work and, most importantly, drive action to tackle it where we find it.”

Signed by TUC general secretary Frances O’Grady, CBI director general Tony Danker and EHRC chairwoman Baroness Kishwer Falkner, the letter was sent in response to recent recommendations made by the Commission on Race and Ethnic Disparities (Cred).

Cred’s highly controversial report, published in March, was widely condemned for denying the existence of institutional racism in Britain and did not recommend mandatory ethnicity pay gap reporting.

The joint letter says: “We believe the report’s recommendations, in particular those related to pay disparities, could go further in order to effectively increase the participation and progression of ethnic minorities in the workplace and create a fairer Britain.”

The three bodies urged ministers to provide a timeframe to introduce mandatory reporting in order to help minority ethnic workers “reach their full potential in the workplace.”

Ms O’Grady said: “The sad reality is that even today race still plays a significant role in determining people’s pay and career progression. 

“This problem isn’t going to magic itself away: without robust and urgent action many black and minority ethnic workers will continue to be held back.

“Unions stand ready to work with employers, regulators and government on practical steps to tackle inequality and discrimination in the workplace.”

Baroness Falkner said: “Reporting data can help to open businesses’ eyes to what is happening in their organisations.

“Large employers are already used to the gender pay gap regulations, and reporting on the experience of employees from ethnic minority backgrounds will increase understanding of the factors that contribute to pay disparities and inform the changes that need to happen.”

CBI chief UK policy director Matthew Fell said that companies wanted to see the introduction of mandatory reporting “because closing the gap is not just the right thing to do: the business case is watertight.”