Pay Equity – the Facts
You’ve likely heard about the changes to pay equity, but you may not have the facts. So let’s get a few things straight.
First, pay equity recognises and corrects the fact that some female-dominated workforces have been historically underpaid and undervalued due to sex-based discrimination.
It is not the same as the right to equal pay, which means a woman doing the same job as a man should get the same pay. Equal pay remains protected in New Zealand law. Nothing has changed.
Second, under the pay equity changes no woman has had her pay cut. The twelve pay equity settlements reached to date including for nurses, social workers, midwives, teacher aides, school librarians, care and support workers remain. Those settlements resulted in higher pay for tens of thousands of women, and they continue to be funded by the Government, at a cost of around $1.8 billion a year. The pay of these women is not at risk.
Third, claims are still able to be raised under the new system and further pay equity settlements are expected. The Government has set aside a large amount of money to fund these claims under the new law.
So why has the Government made changes to pay equity?
The first pay-equity claim was proved in the Supreme Court by Kristine Bartlett on behalf of thousands of care and support workers. In response, the last National Government delivered the first ever pay-equity settlement in New Zealand, it then designed a clear legal regime so that other claims could be progressed without workers having to resort to the Courts.
However, in 2020 the Labour Government put its own pay equity regime in place. This saw admin workers compared with civil engineers; social workers compared with detectives; and librarians compared with fishery officers.
What started under National as a clear pay equity regime to redress historically underpaid female-dominated workforces, became a multi-billion dollar grievance industry that departed a very long way from issues of sex-discrimination.
It also became completely unaffordable.
The Government has now put in place a much more workable pay equity regime. It has set out a transparent process through which employers and employees can negotiate the question of equal value.
These changes enable the Government to unwind a forecast blow-out in pay equity costs while ensuring New Zealand retains an affordable fair pay equity scheme focused on genuine sex-based discrimination.
They also mean a lot more money can now be invested in other services Kiwis need, like schools, hospitals, roads and other much needed initiatives.
Pay Equity Facts
There has been a lot of misinformation on the changes to the Pay Equity legislation. We want to ensure you have the facts - we are not cutting women’s pay, and equal pay is not changing.
What changes has the Government made to pay equity?
The Government has changed the process for progressing pay equity settlements.
What is pay equity?
Pay equity addresses female-dominated workforces that have been historically underpaid and undervalued due to sex-based discrimination. For example, social workers and care and support workers.
Is pay equity the same as equal pay?
No. Equal pay is the concept that a woman doing the same job as a man should get the same pay.
Has equal pay been stopped?
No. Equal pay is fully supported by the Government and remains protected in New Zealand law, as it has since 1972.
Under the Government’s changes, can women still make pay equity claims?
Yes. Twelve pay equity settlements have been reached to date, including for nurses, social workers, midwives, teacher aides, school librarians, and care and support workers. Claims are still able to be raised under the new system and further pay equity settlements are expected. The Government has set aside a large amount of money to fund further settlements under the new law.
Will women who have already won pay equity claims have their pay cut?
No. The 12 pay equity settlements made to date resulted in higher pay for tens of thousands of women. They continue to be funded by the Government at a cost of around $1.8 billion a year.
Why has the Government made changes to pay equity?
The first pay-equity claim was proved in the Supreme Court by Kristine Bartlett on behalf of thousands of care and support workers.
In response, the last National Government delivered the first ever pay-equity settlement in New Zealand, it then designed a clear legal regime so that other claims could be progressed without workers having to resort to the Courts.
However, in 2020 the Labour Government put its own pay equity regime in place. This saw admin workers compared with civil engineers; social workers compared with detectives; and librarians compared with fishery officers. It also saw multiple employers joined to claims and some claims with dozens of very different jobs in scope.
What started under National as a clear pay equity regime to redress historically underpaid female-dominated workforces, became a multi-billion dollar grievance industry that departed a very long way from issues of sex-discrimination.
It also became completely unaffordable.
So what exactly has the Government done?
The Government has now put in place a much more workable pay equity regime that focuses on the actual issue of sex-based discrimination. It has set out a clearer and fairer process for employers and employees where claims will be based on merit to ensure genuine cases of discrimination are addressed.
What will the Government’s changes achieve?
The changes enable the Government to unwind the forecast blow-out in pay equity costs while ensuring New Zealand retains an affordable and fair pay equity scheme that is focused on genuine sex-based discrimination.
The changes also mean a lot more money can now be invested in other services Kiwis need, like schools, hospitals, roads and other much needed initiatives.