Goodyear Tyres UK Limited Gender Pay Gap Narrative 2021

Introduction

Goodyear is an Equal Pay Employer.

Goodyear Tyres UK Limited is committed to reporting our gender pay annually, in line with Government requirements in support of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

In this report we outline our gender pay gap figures, identify the reasons behind any pay differences and our plans to support closing any gaps.

Gender Pay Gap data for Goodyear Tyres UK Ltd 2020/2021:

 

Salary Quartiles

Band

Description

Lower

Includes all employees whose standard hourly rate places them at or below the lower quartile

Lower Middle

Includes all employees whose standard hourly rate places them above the lower quartile but at or below the median

Upper Middle

Includes all employees whose standard hourly rate places them above the median but at or below the upper quartile

Upper

Includes all employees whose standard hourly rate places them above the upper quartile

 

For the pay gaps, a positive percentage indicates the extent to which women earn, on average, less per hour than men and a negative percentage indicates how much women earn more per hour than men.

Pay Gap

We have studied our gender pay gaps for salary and we see a negative mean gap of -20.1%, which indicates that on average, woman earn more per hour than men. The negative median gap of -65.1% also confirms this. The 2019 report, based on the snapshot date of 5 April 2018, shows a positive mean gap of 6% and a positive median gap of 5.4%. We thus see a significant reverse in average pay per hour between men and women versus 2019. We have analysed this gap and we conclude that the main reasons for this gap are follows:

-      Furlough impact: At Payroll, snapshot date, 5th April 2020, there were 89 employees furloughed through the Government's Coronavirus Job Retention Scheme and are therefore not included in the mean and median hourly pay calculation. 72% of the furloughed population were male, and only 28% were female. Of the furloughed population, the majority (70%; 62 employees) were working in our Sales & Marketing departments and our Motorsport Operations. Typically, the number of male employees in these areas is higher than the female employees. Of the 62 furloughed employees in these areas, 80% were male. We see an impact from the furlough specifically on the upper middle and upper quartiles, as the majority of male employees furloughed would be positioned in those quartiles but were excluded from the calculation of the hourly pay.

-      Tyre Technicians: Our tyre technicians make up about half of the UK headcount and are all male.  Of this population, most (approx. 80%) are positioned in the lower two quartiles, this is why we see an impact on the hourly pay gap.   

Bonus Gap

Note: the furloughed employees were included in the calculation of the bonus pay.

In relation to bonus payments, 83.10% of women earned a bonus compared to 84.55% of men. With regards to the size of those bonus payments, men are on average being paid more than women. Men are being paid a mean bonus payment of 40.2% more than women and a median bonus payment of 43.5%. However, compared to the 2019 gender pay report, the difference in the mean and the median has been reduced. In the 2019 report this difference was much higher at 51.5% mean and 46.3% median payment.

The reason for the difference in bonus pay is related to the structure of our bonus schemes, in that our bonus is paid as percentage of annual salary, and the salary as well as the bonus potential is determined by our job pay grades. More roles in the upper quartiles that pay the higher bonuses are held by men. Also, the fact that our sales force is male dominated has an impact on the sales bonus pay gap.

We do not believe that there is a gender bias in our approach to bonus pay, especially when considering that proportion of women and men receiving a bonus is roughly the same. But we recognise that the mean and median gender bonus gap will only close if an increased number of women are holding roles in the middle and upper pay quartiles.

 

 

Closing the Gap

We are confident that all genders are paid equally for doing equivalent jobs through the Goodyear network.

One of Goodyear's key priorities is to promote Diversity & Inclusion in the workplace across all levels and all functions.

A further step to promote gender equality is the launch of the Goodyear Women’s Network within our EMEA region; to promote gender diversity, especially at leadership levels and provide opportunities to attract, motivate and retain women at Goodyear.

We also have a series of family friendly and flexible working policies in place to allow all employees, regardless of gender, to strike the right balance between their personal life and their career development.

We remain committed to the principle of equal opportunities and equal treatment for all employees, regardless of sex, race, religion or belief, age, marriage or civil partnership, pregnancy/maternity, sexual orientation, gender reassignment or disability. We have a clear policy of paying employees equally for the same or equivalent work, regardless of their sex (or any other characteristic set out above). As such, we:

  • evaluate job roles and pay grades within a fair pay grade structure
  • carry out pay and benefits audits at regular intervals;
  • have clear processes and approvals in place for any pay reviews
  • provides regular anti-discrimination training for all managers and other staff members who are involved in pay reviews

I, Yasmine Goudembourg, HR Manager, confirm that the information in this statement is accurate.

4th October 2021