[Congressional Record Volume 147, Number 48 (Wednesday, April 4, 2001)]
[Senate]
[Pages S3429-S3430]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               EQUAL PAY

  Mr. KENNEDY. Mr. President, yesterday, Equal Pay Day, marked the day 
this year when women's median earnings for 2000 and 2001 to date, catch 
up with what men earned last year.
  It is disgraceful that hard-working women and people of color are 
still battling wage disparities and pay discrimination on the job. 
There is a wealth of evidence that shows that the wage gap still 
continues to plague American families, and that wage discrimination 
continues to be a serious and pervasive problem in workplaces across 
the country. In spite of the progress we have made, women still earn 
only 76 cents for every dollar earned by men. African American

[[Page S3430]]

women earn just 64 cents, and Latinos earn only 54 cents for every 
dollar earned by white men.
  I have long supported the Equal Pay Act, which was signed into law 37 
years ago by President Kennedy, and believe that the wage gap in the 
United States is unconscionable. Women and people of color should not 
be treated as second class citizens when it comes to pay. But not 
everyone shares my view. I was deeply troubled to learn this week that 
Diana Furchtgott-Roth, one of the strongest and most vigorous opponents 
to equal pay, was newly named as Chief of Staff to the Council for 
Economic Advisors.
  These pay disparities translate into large costs in lost wages and 
lost opportunity. The average working woman loses $4,200 in earnings 
annually, and suffers a loss of $420,000 over her career. This gender 
gap has a long-term impact, since lower wages and lower lifetime 
earnings lead to lower pension benefits in retirement. The median 
pension benefit received by new female retirees is less than half that 
of the benefits received by men.
  While some critics argue that the differences in pay are based on 
different levels of education, years in the workforce, occupational 
differences and similar factors, these factors alone do not explain 
away the wage gap. Studies have found substantial pay differences 
between men and women even when these factors are held constant. In 
fact, women now surpass men in the percentage of those earning a 
college or advanced degree, but college-educated women working full-
time earn almost $28,000 less annually than college-educated men. An 
African American woman with a master's degree earns $29,000 less 
annually than a college-educated white male. An Hispanic female with a 
bachelor's degree makes only $872 more than a white male with only a 
high school degree.
  Pay discrimination is not just a women's problem, it's a family 
problem. The wage gap costs America's families $200 billion a year. 
Nearly two-thirds of working women report that they provide half or 
more of their family income. In addition, nearly one in five U.S. 
families is headed by a single woman, yet these women continue to earn 
the lowest average rate of pay. Women are entitled to the same 
paychecks as their male colleagues who are performing the same or 
comparable work. Without pay equality, women are less able to provide 
an economic safety net for themselves and their families.
  If married women were paid fairly, their family incomes would rise by 
nearly six percent, and their families' poverty rates would fall from 
2.1 percent to 0.8 percent. If single working mothers were paid fairly, 
their incomes would rise by 17 percent, and their poverty rates would 
be reduced from 25.3 percent to 12.6 percent. These figures demonstrate 
the staggering effects of these unfair pay disparities on the lives of 
women and their families.
  The equal pay provisions of the Democratic leadership bill would 
toughen the Equal Pay Act by providing more effective remedies for 
women denied equal pay for equal work, allowing prevailing plaintiffs 
to recover compensatory and punitive damages. It also eliminates 
loopholes that employers use to evade the law, authorizes additional 
training for enforcement agencies to better handle wage disputes, and 
provides for the study of pay dynamics in the U.S. labor market to 
better understand the pay inequity problem. Finally, the bill forbids 
employers from prohibiting employees from disclosing their wages to co-
workers, thereby making it easier for workers to evaluate whether their 
rights are being violated.
  Congress should pass these equal pay provisions. It is unacceptable 
for women and people of color to work hard and yet be denied fair 
compensation. These disparities are particularly alarming, because they 
persist 37 years after the Equal Pay Act was first enacted and at a 
time when our nation has been enjoying unprecedented prosperity. It's 
the right thing to do, and the fair thing to do, for working families.

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