Coalition group demands action on ethnic, gender and disability pay gaps
Tuesday, 28 March 2023
A strong coalition of 45 organisations, unions and employers are calling on the Government to take immediate action to close ethnic, gender and disability pay gaps in the workplace.
Read this story in te reo Māori and English here. / Pānuitia tēnei i te reo Māori me te reo Pākehā ki konei.
In support of this call, an open letter addressed to Prime Minister Chris Hipkins has been published by Te Kāhui Tika Tangata Human Rights Commission calling for pay transparency legislation.
Equal Employment Opportunities commissioner Saunoamaali’i Karanina Sumeo said the cost of living was rising, and so did the impact of unfair pay, wage theft, unconscious bias and systemic racism.
Sumeo is urging New Zealanders to sign the letter and contact their elected representatives and employers to demand a policy change on pay gaps.
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According to the latest child poverty statistics released last week, 1 in 9 children live in low-income households that have less than 50% of the median household income.
The figures for Māori, Pacific and disabled children are higher than the national average.
Sumeo said those who suffered as a result of unjust and unfair pay go beyond workers and into the next generation if it isn’t stopped now.
“Tens of thousands of families especially Māori, Pacific, ethnic minorities and our disabled communities are struggling to make ends meet,” Sumeo said.
“We all deserve and want to live with dignity and have the same rights to an adequate standard of living and equal employment opportunity.”
The Pacific Pay Gap Inquiry in 2021 found that for every dollar earned by a Pākehā man, Pākehā women were paid 89 cents, Māori men 86c and Māori women 81c.
For Pacific whānau, men were paid 81 cents and Pasifika women 75c.
“We all benefit from pay transparency legislation because it helps eliminate gender and racial biases that pay secrecy covers up and addresses structural inequalities,” Sumeo said.
“We can help create a fairer society where workers are empowered to maximise their abilities, be fairly rewarded for the work they do, thrive in the workplace and live in dignity.”
Sumeo said research through their inquiry had provided evidence that racism, unconscious bias and workplace discriminatory practices are some reasons why Pacific workers are held back from realising their full potential in the workplace.
New Zealand Council of Trade Unions said these drivers of pay gaps undoubtedly affect workers and exacerbate disparities in pay based on ethnicity, gender and disability.
“Transparency is a vital step towards closing our pay gaps. From here, we can ensure working people are engaged in the solutions in addressing the pay gaps,” council vice president Rachel Mackintosh said.
Associate Minister for Workplace Relations and Safety Priyanca Radhakrishnan said the Government was committed to ensuring all workers were paid fairly.
“A pay transparency system is one lever that may help in closing gaps in pay, but it’s not the only lever,” Radhakrishnan said in a statement.
“Our Government has already taken action to address pay equity, including introducing the Equal Pay Amendment Act in 2020 and Fair Pay Agreements in 2022 which has resulted in six pay equity settlements resulting in over 110,000 people getting their pay corrected, with an average increase of 32.4%.
“The National Advisory Council on the Employment of Women (NACEW) is engaging with partners and the business sector to help inform this work and hear a wide range of views on what a pay transparency system could look like in New Zealand – considering both gender and ethnicity pay gaps.
“As this work is still under way, we are unable to provide a definitive timeline at this stage. I acknowledge the advocacy on this important issue and agree there is more to do in this space,” Radhakrishnan said.
Sumeo said many employers believed that the legislation could be a powerful tool to foster a more diverse and inclusive workplace culture where workers felt safe, respected, supported and could thrive.
She said pay transparency requirements would also support the efforts of employers to ensure equal opportunity, promote diversity and put an end to unlawful discrimination.
“We are calling on all New Zealanders to show their support by signing the open letter and contacting their elected representatives and employers to demand immediate action on pay gaps,” Sumeo said.
“We are not only doing what is morally right but also honouring Te Tiriti o Waitangi and meeting our human rights obligations. It’s time for concrete action and legislative reforms,” Sumeo said.