Gender Pay Gaps during Pandemic: A Reflection on International Workers’ Day 2021

Men, rather than women, have been disproportionately affected by job losses over time. Nonetheless, the harsh reality of this pandemic recession has shown that women are more likely to be unemployed. As a matter of fact, women have lost substantial jobs as a result of increased childcare needs caused by school and daycare closures, which prohibit many women from working, and as a result of their employment being concentrated in heavily affected sectors such as the services sector (hospitality business, restaurant, retail outlets and so on). According to a study by Alon et al, women’s unemployment increased by 12.8 percent during the first period of Covid-19 (from March 2020), while men’s unemployment increased by just 9.9 percent. Changes in job rates (which include transfers into and out of the labor force) follow the same trend, with women experiencing a much greater drop in employment than men during the recession. Similar trends have been seen in other pandemic-affected countries.

In Southeast Asia, where informal workers account for 78 percent of the workforce, women make up the majority of blue-collar employees. In Indonesia, the Philippines, Cambodia, Laos, and Myanmar, women make up a substantial portion of the domestic workers, despite having a low contractual working status in informal settings. They are underpaid as a result of the pandemic, and the Covid-19 recession has reduced their importance in the workplace. Indonesia as one of the countries which affected by pandemic also experienced similar thing, with two-thirds of the female population in the active age group (between 15 and 64 years old), Indonesia is supposed to have tremendous potential for accelerating its economic development, but the truth is the opposite due to the never-ending pandemic. Since the pandemic began, many employees, mostly women, have lost their jobs or had their working hours shortened. Of course, their daily wages are affected by this situation. Besides, the wage gap between men and women also widens from March 2020 to March 2021, with women in the informal sector receiving up to 50% less than men, clearly resulting in discriminatory practices.Despite the fact that Indonesia ratified the International Labor Organization’s (ILO) Convention No. 100 on Equal Remuneration in 1958, fair and equal salaries have remained unchanged until now, and the legislation seems to have been overlooked and inapplicable in a pandemic situation.

Furthermore, the issue is not resolved at that stage. Apart from the pandemic, both formal and informal workers are exposed to various work systems and regulations. Women may have similar experiences with low wages and unequal payment positions in both environments, but women who work in the formal sector have the capacity, experience, and communication skills to negotiate their salaries with their employers, while women who work in the informal sector do not. Women in informal work face a number of challenges, including a lack of negotiation skills and a voice in fighting for their rights, particularly if they lack support structures (labor unions). Furthermore, when it comes to employees’ salaries, the corporate system is notoriously secretive. Another issue that continues to upset women is the lack of transparency in employee wages. Despite the fact that the national minimum wage policy is regulated by the government, only a small number of female workers are aware of it.

Overcoming Gender Pay Gaps within Pandemic Condition

In the spirit of International Workers’ Day 2021, there should be an organized and systematic solution to (at the very least) close the wage gap between men and women in this pandemic situation. International organizations and agencies also attempted to convince national governments to abolish gender roles and prejudices, however this is insufficient. As a decision-maker, the government must ‘knock on the door’ of companies and businesses to support and appreciate work done disproportionately by women. Furthermore, implementing transparent and equitable wage schemes is an important aspect of significantly changing this phenomenon. Real action must come not only from the structural level (government and corporations), but also from society, which must acknowledge the existence of women’s workers and not undervalue what they have accomplished, because in this Covid-19 condition, women must bear the “triple burden” of action, whether in productive work (as a worker or labor), reproductive work (as a wife and mother), and also as a member of society. Last but not least, women must actively engage in labor unions in order to persuade gender equality in the workplace and have the courage to speak out for their rights, as this is the key to securing fair wages. And when women are paid equally, their family’s income rises, and they contribute more to the family’s well-being.

Lengga Pradipta
Lengga Pradipta
A human ecology researcher in Indonesian Institute of Sciences (LIPI). Having interests on environmental justice, natural resources management and gender issue.