Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

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

The Committee takes note of the supplementary information provided by the Government following the decision adopted by the Governing Body at its 338th Session (June 2020). The Committee proceeded with the examination of the application of the Convention on the basis of the supplementary information received from the Government this year, as well as on the basis of the information at its disposal in 2019.

The Committee notes the observations of Business New Zealand and the New Zealand Council of Trade Unions (NZCTU) communicated with the Government’s reports.

Articles 1 and 2 of the Convention. Addressing the gender pay gap. Referring to its previous comments, the Committee notes that, from the Labour Market Statistics of Statistics New Zealand (StatsNZ), in the June 2020 quarter, women’s median hourly earnings were 25.57 New Zealand dollars (NZD) compared with NZD 28.26 for men, with a gender pay gap of 9.5 per cent. Since 2017, the gender pay gap has remained relatively static. It further notes, from the 2020 Quarterly Employment Survey of Stats NZ, that, in May 2020, men’s average earnings were 19.8 per cent higher than those of women with a gender earnings gap higher in the public than in the private sector (26.2 per cent and 23.2 per cent respectively). When comparing average weekly earnings by gender and ethnicity, data show that earnings rates are still much lower for ethnic groups other than European and, in particular, that, in 2019, the gender pay gap for Maori and Pacific Island women in relation to European men’s average weekly earnings was 38.8 per cent and 39.4 per cent, respectively. Referring in that regard to its 2020 observation on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), the Committee notes that in Business New Zealand’s view education is also a factor of the gender pay gap, most probably for Maori and Pacific Island women for whom the earning gap will inevitably persist until they are able and want to engage in higher-paying employment. The Committee also notes that women make up a majority of the workforce of the two lowest paid industries, namely accommodation, cafes and restaurants (60.8 per cent of women) and retail trade (51.1 per cent of women), while they represent a minority in the highest paid industry, namely the electricity, gas and water industry (25.4 per cent of women), where the average earning is twice as high as in the above-mentioned two lowest paid industries. Furthermore, women are still most represented among clerical and administrative workers (73.5 per cent of women), while they represent only 20.4 per cent of the technicians and trade workers. Regarding the causes of the gender pay gap, the Committee notes the Government’s indication, in its report, that, in March 2017, the Ministry for Women released research on «empirical evidence of the gender pay gap in New Zealand » which concludes that 80 per cent of the gender pay gap is now driven by «unexplained» factors. The Government adds that further reduction of the gender pay gap remains a priority. The Committee notes that in Business New Zealand’s view the gender pay gap is a useful measure to understand differences in pay but it is a limited measure as it does not account for men and women doing different jobs or working different hours (e.g. part-time to accommodate family circumstances), nor does it take account of personal characteristics that can influence pay, such as qualifications and age. It notes that, in its observations, the NZCTU expresses concern about the lack of progress in developing pay transparency legislation and requests the Government to urgently assess and undertake measures to address the gender pay gap in the private sector. In that regard, the Government states that relevant ministers have commissioned work to consider a pay transparency regime. Noting that the Parental Leave and Employment Protection Amendment Act 2017 (2017 No. 45) extended the duration of paid parental leave from 18 to 22 weeks on 1 July 2018, with a further extension to 26 weeks on 1 July 2020, the Committee notes that in NZCTU’s view further extension is needed, together with a fairer distribution of family responsibilities between men and women in order to facilitate the reconciliation between family and work obligations. In that regard, the Committee notes, from the 2018 Government’s report under the national-level review of implementation of the Beijing Declaration, that research conducted on parenthood and labour market outcomes found that women who return to work after becoming parents earn hourly wages that are 4.4 per cent lower on average than the wages they would have earned had they not had their children; and that women who are away from work for over a year experience a 8.3 per cent decrease in hourly wages. The study further confirmed that balancing parenthood and paid work in New Zealand is still highly gendered and, over time, this can lead to substantive differences in earnings between mothers and fathers. The Committee notes that, in their concluding observations, the United Nations (UN) Committee on the Elimination of Discrimination Against Women (CEDAW) and the UN Committee on Economic, Social and Cultural Rights (CESCR) both raised concerns about: (1) the persistent gender pay gap, which disproportionately affects women, including Maori and Pacific Island Women; (2) occupational gender segregation; and (3) the concentration of women in part-time, casual and low-paid employment, constituting an obstacle to eliminating the gender wage gap and affecting women’s pension benefits when they retire (CEDAW/C/NZL/CO/8, 25 July 2018, paragraph 33; and E/C.12/NZL/CO/4, 1 May 2018, paragraph 30). The Committee further notes that, in the framework of the Universal Periodic Review (UPR), in 2019, the UN Human Rights Council specifically recommended eliminating the gender pay gap, including by increasing the representation of women in leaderships positions (A/HRC/41/4, 1 April 2019, paragraph 122). The Committee asks the Government to provide information on the measures implemented to address the gender pay gap and its underlying causes, such as vertical and horizontal occupational gender segregation and stereotypes regarding women’s professional aspirations, preferences and capabilities, and their role in the family, by promoting women’s access to a wider range of jobs with career prospects and higher pay. It further asks the Government to provide information on the measures implemented to specifically address the gender pay gaps between, and within, ethnic groups, in particular Maori and Pacific Island People, as well as on any assessment made of their impact. Finally, the Committee asks the Government to continue to provide statistical information on the gender pay gap in the various sectors and occupations, disaggregated by sex and ethnicity.

Application of the principle in the public service. Referring to its previous comments, the Committee notes the Government’s statement that several initiatives are being implemented by the Government to address the gender pay gap in the public service, including: (1) the gender pay principles, launched in June 2018, which provide guidelines for State sector agencies to help them create working environments that are free of gender-based inequalities; and (2) the Gender Pay Gap Action Plan for eliminating the gender pay gap in the public service for 2018-2020, which aims at ensuring that by the end of 2020 there are no gender pay gaps within the same or similar roles; 50 per cent of positions in the top three tiers of leadership are held by women; and there is no bias or discrimination in remuneration systems and human resources practices. The Committee notes, from StatsNZ, that, the gender pay gap in the public service was estimated at 10.5 per cent in 2019, while important variations remain between the different departments, ranging from 32.8 per cent in the Ministry of Defence to -2.2per cent in the Oranga Tamariki - Ministry of Children, mainly as a result of occupational gender segregation, occupational structure and seniority. The Committee asks the Government to provide information on the measures implemented to reduce the gender pay gap in the public sector and its underlying causes, such as occupational gender segregation, in particular in the framework of the Gender Pay Gap Action Plan 2018-2020 and the implementation of the gender pay principles. It asks the Government to provide information on any assessment made of their impact and results. The Committee further asks the Government to continue to provide statistical information on the earnings of men and women in the public service, disaggregated by occupational group.

Article 2(2)(c). Collective agreements. The Committee previously noted the Government’s indication that the Employment Relations Amendment Act, 2014, aimed at increasing flexibility in collective bargaining, while according to the NZCTU, such amendments would affect particularly women, and Maori or Pacific Island people. It encouraged the Government to assess the impact of the new amendments on the role of collective agreements in addressing wage inequality. Noting the Government’s statement that no assessment has been made in that regards, the Committee notes that the Employment Relations Amendment Act 2018 (2018 No. 53) now requires pay rates to be included in collective agreements, with an indication of how the rate of wages or salary may increase over the agreement’s term. It observes however that the new amendments do not contain any reference to the need to ensure equality of treatment in the fixing of pay rates in collective agreement. The Committee further notes that the NZCTU, while welcoming the new amendments, expresses concern over the continued efforts of the Government, as employer, to narrowly construe these provisions which is inconsistent with the intention of the provisions. The Committee asks the Government to assess, in cooperation with workers’ and employers’ organizations, the impact that the amendments introduced in the Employment Relations Act in 2018 may have on addressing the gender pay gap in practice, and in particular on the role of collective agreements in addressing wage inequality. Recalling the important role that can be played by collective agreements in the application of the principle of equal remuneration for men and women for work of equal value, the Committee asks the Government to provide information on the number and content of the provisions on wage determination and equal remuneration for men and women for work of equal value that have been included in such collective agreements.

Article 3. Objective job evaluation. The Committee previously requested the Government to provide information on any measures taken to promote the use of objective job evaluation methods to ensure gender equality in the determination of remuneration. The Committee notes the Government’s indication that the Ministry of Business, Innovation and Employment (MBIE) provides pay and employment equity tools, such as a pay and employment equity review analysis tool available online, for both private and public organisations that want to address equity issues in their workforce. It further notes the information provided by Business New Zealand that most larger employing organisations assess their jobs using gender neutral assessment systems such as the factor-based Hay assessment system, while smaller firms are likely to consult a website such as New Zealand on-line wage and salary solution. The Government adds that, as regards job evaluation methods used in the context of a pay equity claim, it recommends the use of a gender-neutral job evaluation tool to assess both the work of the claimant and the comparator occupational group, but does not specify exactly which tool should be used giving the parties the opportunity to discuss and agree on it. Regarding the pay equity claims processes that have been settled so far within the pay equity principles framework in the public sector, the Government indicates that two pay equity claim processes have used the gender-neutral Equitable Job Evaluation Tool and one of the processes also partially used the factor-based Hay assessment system. The Committee asks the Government to provide information on any measures taken or envisaged with a view to promoting the use of objective job evaluation methods that are free from gender bias, including targeted training on the use of existing pay and employment equity analysis tools and resources for workers and employers and their organizations in the private sector. It further asks the Government to continue to provide information on the job evaluation methods used in the context of pay equity settlements.

Enforcement. The Committee previously noted the NZCTU’s observation that a proactive approach in monitoring pay equity and equal pay claims would be needed. The Government indicated that initiatives to monitor or support pay equity may be considered after the discussion of the Joint Working Group’s recommendations was concluded. The Committee notes the Government’s statement that the Equal Pay Amendment Act 2020 (2020 No. 45) addresses such issues. It also notes that, in its 2018 concluding observations, the CEDAW remained concerned about the persistence of multiple barriers impeding women and girls from obtaining access to justice and effective remedies to claim violations of their rights, in particular for rural, Maori, and Pacific Island women (CEDAW/C/NZL/CO/8, 25 July 2018, paragraph 13). In light of the lack of legislative provisions fully reflecting the principle of the Convention, the Committee asks the Government to provide information on any specific steps taken with a view to promote and enforce the principle of equal remuneration between men and women for work of equal value, including by ensuring access to justice and effective remedies in the case of pay inequality, in particular for rural, Maori, and Pacific Island women. It asks the Government to provide information on the number, nature and outcome of any cases or complaints concerning pay inequality dealt with by the labour inspectors, the Employment Relations Authority, the Employment Court and any other competent authorities.