“We Pay People Based On The Work They Do”: The Gap Pays Men & Women Equally

August 27, 2014  |  

The gender pay gap that ravages our workforce ceases to exist at a major retailer ironically called The Gap, ThinkProgress reports.

Women, on average, earn only 77 cents for every dollar a man makes. For women of color, that figure plummets to 64 cents for every dollar a man earns. Granted, nearly half of the pay disparity can be attributed to women’s different choices in occupations, which are usually lower paying compared to their male counterparts. And another 10 percent can be blamed on differences in work experience.

But “economists cannot explain the remaining 40 percent of the wage gap between men and women,” according to American Progress, even when controlling for job differences, experience, and education level. American Progress points a finger at America’s institutions for its unwillingness to budge on equal pay for both men and women.

The Gap, though, is an exception.

“We pay dollar for dollar across the organization, regardless of level,” a Gap Inc. spokeswoman told ThinkProgress. “[O]n average, women at Gap Inc. are paid at a one-to-one ratio compared to their male counterparts across our organization.”

And when it comes to ladies in leadership, The Gap is an anomaly as women are well-represented in high-ranking roles. Women make up 70 percent of store managers, 60 percent of directors, 50 percent of vice presidents, and 47 percent of executive vice president. By comparison, among America’s top companies, only 46 percent of store managers are women, only 39 percent are directors, and less than one-third are VPs and EVPs.

“We pay people based on the work they do and the value they bring to our company,” the spokeswoman added.

The retail industry is no angel when it comes to gender pay discrimination. On average, women in retail make 72 percent of what their male counterparts earn. Saleswomen, ThinkProgress adds, make $4 less an hour than men. “Women also hold the majority of low-wage retail workers.”

This isn’t the first time The Gap has made significant moves for fair compensation. Just last February, the multinational clothing retailer hiked up their lowest minimum wage to $10 an hour. “Our decision to invest in frontline employees will directly support our business, and is one that we expect to deliver a return many times over,” Gap Chairman and CEO Glenn Murphy said.

As progress in closing the pay gap has stagnated over the past decade (women made $704 a week in 2013, the same as 2004), it’s noble that The Gap is being conscious about providing equal pay and opportunities for women.

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