Federal government hints to using procurement to force gender equality

The Australian Federal Government this week has hinted to using procurement to force gender equality in supplier base.

Heading the Government's reform push will be the agency's newly appointed director Helen Conway, who is leaving Caltex to take up the position.

Ms Conway says the robust new powers would allow the Government to effectively blacklist non-compliant businesses.

"I think the most important thing is that those companies that don't comply will not be able to participate in any procurement by the Government. So any goods and services the government seeks to procure from companies must be from companies that are compliant with this act," she said.

The Federal Government says it will not do business with companies not actively pushing gender equality in the workplace.

Reforms announced today include spot checks on businesses to assess fair pay and working conditions for women.

Businesses with more than 100 staff will be required to report on how many workers are female and how their conditions compare to male employees.

The Minister for the Status of Women, Kate Ellis, says businesses that do not comply with the laws will not be eligible for government-funded grants and industry assistance programs.

Government trade with non-compliant organisations will not be permitted by law, with Ms Ellis pointing out that government contracts were worth more than $40 billion.

With the changes they will have to spell out employment conditions, including equal pay, and flexible work arrangements for male and female employees.

The Equal Opportunity for Women in the Workplace Agency will receive an extra $11.2 million in federal funding over four years to monitor the reforms.

The announcement follows worldwide celebrations on Tuesday marking the centenary of International Women's Day.

Business groups, however, are sceptical about the Government's plan to boost women's participation in the workforce, saying the new guidelines risk being heavy-handed.

Ms Conway has denied the new laws are about legislating a quota system in the workforce.

The new legislation will be introduced this year, with the first reports under the new system scheduled to start in 2013.

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