Pay equity has been a workplace issue in New Zealand for many years, particularly when it comes to paying women for their input in industries where they are the predominant worker.
Traditionally, the industries which employ the most women have included aged care and nursing, service jobs, social service organisations, pre-schools and primary schools, cleaning companies and grocery chains. Women are also often the main employees when it comes to administrative, events and promotion roles.
The difficulty has always been valuing the jobs women perform against those industries dominated by men and deciding what pay rate should be apportioned to women. Nurses often called for their duties to be compared to those of the police, for example. A court case taken by aged-care worker Kristen Bartlett made it all the way to the Supreme Court and brought together a panel of people representing working people, business and the Government to find a solution. The court case was seen by workers as addressing historic low pay and gender discrimination in the aged-care industry.
The Government has now considered the working group’s recommendations and there is agreement with the recommendations. This is a major step forward for dealing with any cases of undervaluing women’s work. Importantly, three Cabinet ministers issued the Government’s response to the recommendations of the Joint Working Group on Pay Equity. Paula Bennett, Michael Woodhouse and Louise Upston, all agree it is important gender does not affect what people are paid. Occupations should not be lower-paid just because women make up most of the employees.
A pathway will be established for resolving pay equity issues, just as happens with other employment matters, including mediation and ultimately the Employment Relations Authority. However, just because all parties agree the Government’s actions are the correct course, it will take more than goodwill to finally see New Zealand women paid what they are worth. The recommended threshold test is broad, making many employee roles potentially subject to a claim. The Otago-Southland Employers Association says in parts of the lower South Island, where retail and service worker wages may already be lower than those for comparable roles in Auckland, the potential is for pressure to come for a wage rise, plus equitable pay.
Organisations in the South currently relying on paying "market rates" may find such rates themselves have been systemically undervalued. The challenge for some smaller employers is how to fund the pay rises that are sure to follow in some areas. These are genuine concerns which cannot just be ignored. Small businesses in the south of the South Island are the largest employer of staff. There will be some tough decisions made but that does not take away the obligation of women being equitably paid for the work they do.
The Government has decided to supplement the group’s recommendations to clarify how to choose an appropriate job for comparison when making a pay equity claim. The Council of Trade Unions believes the fairest outcome is for the best and most relevant comparative industry to be selected in each circumstance. It is important further barriers are not created for women taking equal pay claims. The Government needs to act quickly on clarifying what industries can be used to compare working conditions, duties and wages.
The principles agreed require the reasons for any undervaluation of work to be taken into account and require comparisons between industries or groups to be made based on the skills, responsibilities, conditions and effort involved.
New Zealand has a proud history of introducing voting for women in 1893 but voting rights and pay equity have been separated throughout those ensuing 123 years. The agreement is a sign of what can be achieved with negotiations in good faith.
