Pay equity changes ‘demoralising’, says Global Women

Tuesday, 29 July 2025

Changes to the pay equity claim regime have had a demoralising impact on women involved in claims and created uncertainty for businesses, says Global Women, a group of the country’s top female business executives.

But getting equal pay for work of equal value was a human right and an issue that mattered to women irrespective of whether they were in the boardroom or on the cleaning team, the organisation’s chief executive, Katie Bhreatnach, told The Post.

That meant it was critical for work towards securing pay equity to continue, despite recent setbacks, she said.

In May, the Government announced changes to the Equal Pay Act which it claimed would “make the process of raising and resolving pay equity claims more robust, workable and sustainable”.

But the changes, which were pushed through Parliament under urgency, made it harder for women to make pay equity claims, and were retrospective and so cancelled 33 existing claims.

Those cancelled claims would need to be refiled, and then judged against new, stricter requirements.

Hundreds of thousands of women, including those in sectors like care work, education support, and community services, who were in the queue for a settlement were affected.

The Government’s move prompted widespread outrage, with critics saying the new legislation ended the ability of people working in female-dominated professions to achieve and keep pay equity.

It also led a cross-party group of women former MPs to launch a “people’s select committee” to hold hearings on the changes to the pay equity regime.

Global Women, in its submission to the committee, opposes the Government’s changes, reaffirms its support for pay equity, and points out that abrupt law changes impact on businesses negatively.

It expressed members’ concerns about the legislative process behind the law changes, particularly the lack of transparency and consultation with those most affected.

The need to begin the claims process again has had a demoralising impact on those workforces and undermined their confidence in the societal value of their work, it said.

Bhreatnach said meaningful engagement with workers, employers, unions, and community groups was essential to good lawmaking.

“But the process behind this Act has an impact on confidence among women already engaged in pay equity claims. That’s to do with their trust in the system.

“Many women workers have spent significant time and effort working through the previous process in good faith - only to be told the whole process has to start again.

“That sends a message that their time, their research and their voice doesn't matter. It has a demoralising impact.”

Asked whether the Government’s changes could deter people from pursuing claims, she said it was worthwhile to continue discussion, particularly as it was an election year next year.

“Good lawmaking requires consultation, it allows you to hear the voices of people affected. The people’s committee gives people that opportunity,

“It will give a richer understanding of where we should be making changes going forward, what the opportunities are or what the disproportionate impact might be. And it might inform later changes or tweaks to the legislation.”

Global Women’s submission warned any disruption to the pay equity process would have a disproportionate negative impact on groups who already experienced pay inequities, notably wāhine Māori, Pasifika women and migrant women.

“We urge that specific monitoring and support mechanisms be established to understand and address these potential impacts,” it said.

There were economic implications too, as abrupt law changes created uncertainty, particularly for organisations that were participating in good-faith negotiations under the previous regime, the submission noted.

“Businesses need a process that supports constructive dialogue, is evidence-based, and enables both resolution and certainty,” it said.

“We encourage continued support for mechanisms that enable leadership and accountability on pay equity within organisations, including through voluntary reporting, transparency, and inclusive workplace practices.”

Bhreatnach said progress on pay equity was not only a matter of fairness and human rights, but also a critical economic and leadership issue.

Achieving pay equity strengthened workforce participation, drove innovation, and improved outcomes for women, their families and communities, she said.

“Business leaders have the opportunity to work with Global Women, and other groups, to develop equitable and inclusive systems, and to have a rich discussion around pay equity.”

Global Women, which has more than 400 members, is a non-partisan organisation committed to increasing diversity and inclusion in leadership across the country.

It remained deeply committed to advancing gender equity in both leadership and pay, Bhreatnach added.

“We will continue to advocate for inclusive, evidence-based approaches that deliver fair outcomes to all women in Aotearoa.”