The pay equity puzzle: can we compare effort, skill and risk between different industries?
Gemma Piercy, Lecturer, Sociology, Social Policy and Criminology, University of Waikato Bill Cochrane, Senior Lecture in Sociology and Social Policy, University of Waikato Suzette Dyer, Senior Lecturer in Human Resource Management, University of Waikato Last week’s move by the government to amend pay equity laws, using parliamentary urgency to rush the reforms through, caught opposition parties and New Zealanders off guard. Protests against the Equal Pay Amendment Bill have continued into this week, driven to some extent by disappointment that an apparent political consensus on the issue has broken down. In 2017, the National-led government passed a forerunner to the current legislation for the health sector only, the Care and Support Workers (Pay Equity) Settlement Act. Later, in opposition, National also supported the Labour government’s Equal Pay Act in 2018, as well as the Equal Pay Amendment Act in 2020. That legislation was designed to extend a pay equity process to all occupations and create a clearer pathway for making pay equity claims. With both major parties seemingly aligned, some 33 pay equity claims were under way. Those claims – all halted now – involve the education, health and social services sectors. As such, the government would have to meet the costs of successful claims. This explains why one rationale for the law change has been that the claims were potentially too expensive. The other rationale (preferred by Finance Minister Nicola Willis and Workplace Relations Minister Brooke van Velden) is that the existing policy wasn’t sufficiently rigorous in determining the validity of some claims. Unlock new possibilities. In reality, both the cost and the policy framework allowing equity claims to proceed are interrelated: the more permissive the framework, the higher the potential cost to the government and employers. But while equal pay for equal work is the goal, it’s important to understand that equal pay and pay equity are not the […]