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Scottish Court of Session Decisions |
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You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> South Ayrshire Council v. Decision of the Employment Appeal Tribunal [2002] ScotCS 42 (14th February, 2002) URL: http://www.bailii.org/scot/cases/ScotCS/2002/42.html Cite as: [2002] ScotCS 42, 2002 GWD 7-236, [2002] IRLR 257, [2002] IRLR 256, 2002 SLT 656, [2002] ICR 956, [2002] 2 CMLR 8 |
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South Ayrshire Council v. Decision of the Employment Appeal Tribunal [2002] ScotCS 42 (14th February, 2002)
SECOND DIVISION, INNER HOUSE, COURT OF SESSION |
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Lord Justice Clerk Lord MacLean Lord Caplan
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XA70/01 OPINION OF THE COURT delivered by THE LORD JUSTICE CLERK in APPEAL by SOUTH AYRSHIRE COUNCIL against A decision of the Employment Appeal Tribunal dated 21 September 2000 and issued to the Appellant on 12 October 2000 _______ |
Act: Truscott, QC; Simpson & Marwick (Appellants)
Alt: Napier; McGrigor Donald, Solicitors (Respondent)
14 February 2002
Introduction
The statutory background
The remuneration of teachers
Education (Scotland) Act 1980
"91.-(1) There shall be a committee (in this section and in sections 92 and 93 of this Act referred to as 'the committee') the functions of which shall be-
(a) whenever so required by the Secretary of State, or (in the absence of
such requirement) whenever it thinks fit, to consider; and
(b) whenever it thinks fit to formulate a settlement as to what shall be,
the remuneration payable to, and the terms and conditions of employment of, teaching staff employed by education authorities in Scotland in, or in connection with, the provision of school education.
(2) The Secretary of State may by order prescribe the maximum number of persons by whom, respectively, he, teaching staff and education authorities may be represented on the committee.
(3) Any order made under subsection (2) above may be varied or revoked by a subsequent order made by the Secretary of State.
92.-(1) Subject to any order made under section 91(2) of this Act, the Secretary of State may, for the purpose of setting up the committee, invite any body which appears to him to be representative of teaching staff or education authorities to nominate a person, or such number of persons as may be specified in the invitation, to membership of the committee; and the initial members of the committee shall be such persons as are so nominated together with such person or persons as the Secretary of State may first nominate, under subsection (3)(b) below, to represent him ...
97A.-(1) A settlement formulated by the committee shall specify the date (which may be a date prior to the said formulation) as from which the settlement shall have effect; and the settlement shall remain in effect unless and until superseded by a subsequent such settlement; ...
(2) In the case of a settlement formulated by the committee established under-
(a) section 91 of this Act, every education authority shall give effect to
the settlement in so far as it relates to any member of the teaching staff employed by the authority in the provision of school education; ...
and without prejudice to subsections (4) and (5) of section 18 of the Trade Union and Labour Relations Act 1974 (which make provision in relation to the right of workers to engage in industrial action), while the settlement is in effect-
(i) the provisions of the settlement shall be deemed to be incorporated in
any contract of employment which that member has or may enter into with the employing authority or body; and
(ii) that contract shall have effect only in so far as consistent with those
provisions."
Equality of pay
The Equal Pay Act 1970
"(1) If the terms of a contract under which a woman is employed at an establishment in Great Britain do not include (directly or by reference to a collective agreement or otherwise) an equality clause they shall be deemed to include one ...
(6) Subject to the following subsections, for the purposes of this section -
(c) two employers are to be treated as associated if one is a company of which the other (directly or indirectly) has control or if both are companies of which a third person (directly or indirectly) has control
and men shall be treated as in the same employment with a woman if they are men employed by her employer or any associated employer at the same establishment or at establishments in Great Britain which include that one and at which common terms and conditions of employment are observed either generally or for employees of the relevant classes."
Article 141 of the Treaty
"1. Each Member State shall ensure that the principle of equal pay for male and female workers for equal work or work of equal value is applied.
Equal pay without discrimination based on sex means:
Procedure to date
The proceedings before the Employment Tribunal
(1) The first Decision : 11 October 1999
" ... we saw that in reality there is very little scope for individual local authorities to vary, either by increasing or decreasing, an individual teacher's salary. In effect, councils are regulated by what is known as the 'Yellow Book' and any attempt to depart from the terms of that scheme of terms and conditions is likely to be subject to judicial review."
(2) The second Decision : 16 November 1999
(3) The third Decision : 9 February 2000
The proceedings before the EAT
"18. ... [The Employment Tribunal] have taken the view, with which we consider they were entitled so to do, that the existence of the SJNC scales under the aegis of the Secretary of State provide a sufficient connection in a loose and non-technical sense against the background of the notion of a service being provided by education generally within Scotland by the teaching profession. It has to be emphasised that the mere relevance of providing a comparator does not of course assume that the comparison is in itself relevant to the ultimate question of whether there has been discrimination because there may well be a number of reasons why different rates of pay are paid in different areas. Mr Truscott's substantial complaint was that it was unreasonable to expect that one education authority to enquire of another as to the reasons why it paid particular employees certain rates against the background of the scales but we do not consider this is a valid argument in terms of the legal interpretation to be put upon the Statute. As soon as it is recognised that comparisons may be made beyond the actual work place, this problem is inevitably going to arise and nothing prevents the relevant authority putting forward a section 1(3) defence in relation to a comparator being presented by an applicant in relation to another employment. Thus, merely because it is competent in our opinion to present a comparator from another employment area, does not remotely suggest that it may have a desirable result of establishing discrimination as regards equal treatment.
The appeal to this court
The case for the appellant
The case for the respondent
Decision
Ground of appeal 1 - the Employment Tribunal's allowance of the amendment (the second Decision)
Ground of appeal 5 - misunderstanding of the evidence (the first Decision)
(1) Centralisation
"a detailed written submission with a lengthy factual dissertation setting out the structures which operated in Scotland as regards the educational establishment in relation to teachers at least as applying at the relevant time the substance of the position having recently changed by reason of a change of policy on the part of the Scottish Executive (EAT Decision, at p. 2)."
The EAT commented that some of this went far beyond the evidence received by the Tribunal. The EAT considered that it need not concern itself with such details because the essential point was that, as matters then stood, the formal autonomy of the education authorities was abridged by the SJNC mechanism to the effect that we have already described (ibid., p. 2).
Grounds of appeal 2 and 3 - the admissibility of the third comparator (the first and second Decisions)
"18. For the purposes of the implementation of these provisions a distinction must be drawn within the whole area of application of Article 119 between, first, direct and overt discrimination which may be identified solely with the aid of the criteria based on equal work and equal pay referred to by the article in question and, secondly, indirect and disguised discrimination which can only be identified by reference to more explicit implementing provisions of a Community or national character ...
"During the oral procedure the representative of the Danish Government said that that additional condition was intended to permit geographical differences in pay within Denmark. Since such geographical differences in pay, provided that they apply equally to men and women, cannot be regarded as sexual discrimination, I do not consider that explanation satisfactory. On such a hypothesis the additional condition is superfluous. From a linguistic point of view, moreover, the expression can easily be interpreted as meaning that the comparison of duties is only to be carried out within the same fixed establishment of a single undertaking. In the only arbitration award ... submitted by the Danish Government as evidence of the wide interpretation of the term "same work" ... a standard of comparison restricted in that way was sufficient for the settlement of the case. As appears from the second sentence of Article 1 of the Directive, however, a comparison of duties within the same fixed establishment of an undertaking or even within a single undertaking will not always be sufficient. In certain circumstances comparison with work of equal value in other undertakings covered by the collective agreement in question will be necessary. ... in sectors with a traditionally female workforce, comparison with other sectors may even be necessary. In certain circumstances the additional criterion of 'the same place of work' for work of equal value may therefore place a restriction on the principle of equal pay laid down in Article 119 ... and amplified in the directive in question (ibid., at p. 430)."
Ground of appeal 4 - the "service" point (the third Decision)
Interlocutor