Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Equal Remuneration Convention, 1951 (No. 100) - New Zealand (Ratification: 1983)

The Committee notes the comments by the New Zealand Council of Trade Unions (NZCTU) and by Business New Zealand (Business NZ) attached to the Government’s report.

Work of equal value. The Committee has been commenting for a number of years on the fact that the Employment Relations Act, 2000 (ERA), the Human Rights Act, 1993 (HRA), and the Equal Pay Act, 1972 (EPA), limit the requirement for equal remuneration for men and women to the same and similar work, which is more restrictive than the concept of “equal value” provided in the Convention. The Committee notes the Government’s indication that no laws or regulations concerning the Convention were enacted or amended during the reporting period. The Government does not, however, provide any information, as previously requested by the Committee, to indicate that the legislation concerning equal remuneration is being interpreted to apply the broader concept of work of equal value. Business NZ indicates that, in practice, men and women receive the same pay for the same work.

The Committee notes that the NZCTU expresses concern at the continuing lack of legislative mechanisms to operationalize and implement the principle of equal pay for work of equal value. It also points to the closure of the Pay and Employment Equity Unit and the termination of its work programme, as well as the discontinuing of pay investigations, as discussed below, as bringing to an end, and indeed undermining, any progress in this area. The Committee also notes the Government’s acknowledgement that improvements in the gender pay gap have been slow, with very little change in the pay gap over the last decade. The Committee notes further that women are concentrated into lower paid sectors. In the context of the continuing gender pay gap and occupational gender segregation, as well as what appears to be a recent rolling back of measures aimed at promoting pay equity, the Committee considers that giving full legislative effect to the principle of equal remuneration for men and women for work of equal value is of particular importance to ensure the effective application of the Convention. The Committee therefore asks the Government to take steps to give full legislative effect to the principle of equal remuneration for men and women for work of equal value, and to provide information on the specific measures taken in this regard. The Committee also asks the Government to provide information on any judicial decisions relating to the principle of the Convention.

Applying the principle in the public service. The Committee notes the Government’s indication that the gender pay gap is wider in the public service than in the private sector (at 15 per cent and 11 per cent, respectively, in 2009), and that no information is available regarding why this difference exists. The Committee recalls that pay and employment equity reviews and response plans had been undertaken in the 39 departments, and that the findings of the reviews carried out by mid-2008 indicated the following: a gender pay gap ranging from 3 to 25 per cent, higher starting rates and performance pay for men, an under-evaluation of women’s work, an under-representation of women in management and their concentration in administrative and clerical work with limited career paths, difficult career advancement for part-time workers, and workplace cultures that limited women’s contributions. It notes the Government’s indication that: the Five-Year Plan of Action on Pay and Employment Equity, and the pay and employment equity reviews in the public sector concluded in 2009; that the State Services Commission has a statutory responsibility to promote, develop and monitor equal opportunities policies and programmes for the public service; and that the Ministry of Women’s Affairs has taken on a policy and advisory role with respect to gender and pay equity issues.

In this connection, the Committee notes the observations of the NZCTU that: due to the disestablishment of the Pay and Employment Equity Unit and the discontinuation of the pay and employment equity reviews, pay investigations that had been undertaken for two female-dominated occupations (special education support workers and social workers) were immediately affected; and that the discontinuation of the pay investigations removed policies and processes which underpinned a strategic and comprehensive approach to improving pay and employment equity. In response, the Government indicates that it has pledged continued support for the implementation of the public service departments’ pay and employment equity response plans, excluding pay investigations, and is currently focused on providing support for public service chief executives, boards of trustees and chief executives in the public education and health sectors to ensure that they continue to address and respond to any identified gender inequalities. The Committee asks the Government to take measures to identify and address the underlying causes of the wider pay gap in the public service. The Committee asks the Government to provide information on any measures taken by the State Services Commission and the Ministry of Women’s Affairs, with a view to the promotion and application of the principle of equal remuneration for men and women for work of equal value in the public service, and the impact thereof. Please also provide information on any action taken to implement the recommendations made by the pay and employment equity reviews, as well as the results achieved by the implementation of the public services departments’ pay and employment equity response plans.

Job evaluation in the private sector. The Committee recalls the need for governments to promote objective job evaluation methods in both the private and public sectors to ensure gender equality in the determination of remuneration. It notes the Government’s indication that the Equitable Job Evaluation Tool is currently available for employers both in the public and private sectors through the Department of Labour’s website; for receiving the toolkit, employers are required to report back on the results from their usage of the tool. The Committee also notes the comments by Business NZ that the value to be attributed to a job is a highly subjective concept, with the value to be attributed to a particular job likely to vary depending on the biases of the person carrying out the evaluation. Business NZ also states that any arbitrary re-evaluation, if accompanied by a requirement to pay more as a consequence, can only lead to job loss. The Committee asks the Government to provide detailed information on any measures taken to promote the use of the Equitable Job Evaluation Tool both in the public and private sectors, and on any other measures taken to ensure that the value of jobs is determined objectively and free from gender bias. It also asks the Government to provide information on awareness-raising activities, with the cooperation of the social partners, concerning the concept of “work of equal value” and the importance of using objective job evaluation free from gender bias.

The Committee is raising other points in a request addressed directly to the Government.