Pay Equity

Pay Equity in jeopardy

 

The pay difference between what men and women earn for similar work continues to be a major issue for equality and fairness at work. Check out our new DVD story on pay equity.

 

How would you feel if you were earning a lot less than someone doing much the same job, just because of your gender? That’s the situation Caitlin Lewis was in at Talley’s fish plant in Motueka – so she complained to the Human Rights Commission. Meanwhile Brett Edwards, who had been paid more than Caitlin, was not re-employed in seasonal work because of Caitlin’s complaint – so he complained too. Their fascinating case led to a landmark court decision about sex discrimination.

 


Commission to host pay equity roundtable

The Human Rights Commission will host a round table to advance issues of pay and employment equity following the disestablishment of the Pay and Employment Equity Unit this week.

EEO Commissioner Dr Judy McGregor welcomed the Government’s interest in ensuring that pay and employment equity is the responsibility of all employers, not just state sector employers. The round table will explore ways of continuing the momentum towards closing the gender pay gap.

Dr McGregor was a member of the steering advisory group for the Unit.  She said, “I am disappointed by the decision to dispense with the Unit and saddened for the staff involved.”

“The Pay and Employment Equity Unit ensured there was sustained attention on the undervaluing of women’s work in the labour market and the lack of representation of women at senior levels in the workforce.”

Dr McGregor said, “My concern is that without strong Government commitment and leadership on this human rights issue, the public and private sectors will lack incentive to address these issues.”

“So we don’t lose momentum, interested parties such as employers, trade unions, policy agencies and women’s organisations need to talk about how to advance public debate and employer understanding of the need to commit to pay and employment equity.”

The Minister of Labour Hon Kate Wilkinson has been invited to speak at the round table.

Despite the demise of the Unit, public sector chief executives had a statutory responsibility to be good employers. They are unable to opt out of the mandatory requirements to include women’s rights in the workplace, Dr McGregor said.



What can be done about the gender pay gap?

What can be done about the gender pay gap?The gender pay gap of 12 per cent  less for New Zealand women remains the greatest challenge for women’s economic sustainability, says EEO Commissioner Dr Judy McGregor speaking on International Women’s Day 2009, (March 8).

 


“While every New Zealander is currently concerned about job security and the economic recession, women are suffering a double whammy effect because of the pay equity problem. For every $1 earned by men in New Zealand today, women earn just 88 cents. Many Māori and Pacific women have poorer economic outcomes.”

Many women in low paid jobs were concerned about recent job summit calls for shorter working weeks, less paid hours and nine day fortnights because of the possible effect on household incomes. “Any potential loss of earnings for lower paid workers, many of whom are women, will be unacceptable to them because they won’t be able to pay their bills.”

The Human Rights Commission in its report on New Zealand’s Human Rights Performance has called for the Government to set a minimum target of halving the gender pay gap by 2012 and eliminating it by 2020. The Commission’s report is part of the first Universal Periodic review of New Zealand which will take place in Geneva in May this year.

Pay and employment equity reviews conducted recently in 39 Government departments and 21 District Health Boards showed there was still significant  gender-based pay inequality with women earning on average between 3% and 35% less than men. Women’s starting salaries were also lower than men’s for similar jobs.


“The pay investigation of education support workers who work with special needs children in schools shows they are paid $7.57 less per hour than Corrections Officers, a job that’s been evaluated as a similar size, at the lower end of their pay scale. At the upper end of their pay scale the difference is $4.07.


“Female special education support workers were also paid a $1 less average hourly rate than their male counterparts, even though the women had on average longer service, says the EEO Commissioner.

Special education support workers are one of two groups caught in the freeze on pay investigations announced by Government. In its expectations for Pay and Employment Conditions in the State Sector, the State Services Minister Tony Ryall, discontinued action on two pay investigations, the other being female social workers at Child, Youth and Family.


However, the EEO Commissioner says that public service chief executives would have to take notice of both New Zealand and international law relating to pay equity. Government policy outlined in the expectations required State sector agencies to take account of human rights and that all conditions, including remuneration, should be fair to individual employees.


“Chief executives are obliged to be “good employers” by law including recognition of women’s rights in the workplace and they cannot opt out of their statutory “good employer” functions. This applies to chief executives in public service agencies, local government and Crown entities, “ she says.


“The State Services Commissioner also has a principal function to promote, develop and monitor equal employment policies in the public service and also reviews the performance of chief executives. It isn’t open to senior public servants to ignore pay equity as a basic human right and fairness issue in workplaces.”


“Job retention is everyone’s first priority, but there are pay equity issues such as the low proportion of women in management positions, women’s lower starting rates and performance pay, and poorer career advancement for part-timers who are mainly women, that don’t lead to unaffordable remuneration movement.


“Many women, if they were asked, might accept a moratorium on wholesale pay rises to close the gender gap as long as there was a commitment to a planned, incremental approach for which public service chief executives were accountable as ‘good employers’. Women are not greedy, they simply want fairness,” says the EEO Commissioner.


The gender pay gap is referred to as a concern in the 2008 US Department of State’s Human Rights Report on New Zealand. The Committee on the Elimination of Discrimination against Women has specifically asked the Government to monitor the measures taken to close the wage gap between men and women, the results achieved in both the public and private sectors. The Committee wants the Government to report to it in its next periodic report to the United Nations.

 


Sunrise on pay and employment equity in local government?
 

A big gender pay gap has been revealed in one of the first pay and employment equity reviews to be conducted in local government in New Zealand.

Gisborne District Council, with 265 permanent staff, has a 46 per cent female to 54 per cent male workforce split.

The median full time equivalent (FTE) salary of female staff within the Council is 78.4% of the median FTE salary of male staff.

The median actual salary (taking account of part time work) of female staff is 79.3% of the median actual salary of male staff.

A little over half the women earn less than $40,000 compared to 26 per cent of men, while 27% of men earn more than $60,000 compared to only 7% of women.

The gender pay gap is partly due to occupational segregation.
The workforce data showed women concentrated as librarians, call centre operators, clerical workers, secretaries (100%) and planners while men dominated engineering (100%), specialist managers(100%0 and managers (84%) and technicians and trade workers(1005). Lifeguards were predominately male (70%) compared to 30% women.

The Gisborne case study showed that the review successfully engaged staff and identified issues such as the need to:

• Ensure the absence of gender bias in job evaluations
• Improve the low proportion of women in management positions
• Improve participation among low paid staff in KiwiSaver
• Build women’s confidence in fairness of training and development, promotion and performance management
• Build awareness of flexible working


15 July 2008

How much are you worth?

And how much does the other half earn?

New data shows that the equal pay debate in New Zealand remains a top equal employment opportunity priority in New Zealand.

Three sources show the need for further women’s action to close the current gender pay gap 35 years after the passing of the Equal Pay Act.

• The latest figures show that for every $1 earned by men in New Zealand today, women earn just 88 cents, according to the March Quarterly Employment Survey, 2008. In Australia women earn 84 cents.
• Pay and employment equity reviews in 39 Government departments and 21 District Health Boards show there are still significant cases of gender-based pay inequality with some women earning between 3% and 35% less than men. A significant finding was that women’s starting salaries are lower than men’s for similar jobs.
• Analysis of the 2006 Census education and training data shows the median annual income of men with a post-school qualification was $14,000 higher than for women. For people with a school qualification (about 75% of the population) the gender pay gap disadvantaged women to the tune of $10,000 and for those with no qualifications, men earned $8000 more than women.

EEO Commissioner Dr Judy McGregor says the equal pay story is grim.
“ What is shocking is that women starting work are still valued less than men despite significant women’s educational qualifications, their increased labour market participation and the fact that many women now don’t start having families and interrupted career paths until later in their working lives.

“I find it staggering that in 2008 women are not considered to be equal in terms of pay and often don’t realise that they are being paid less than men for the same job.

“The start-up gender pay gap is something that women and business can fix instantly if they have a mind to.

“Organisations should be making transparent pay scales and starting salaries so women know the going rate. Equally women should not start a job without insisting on knowing that they are being paid equally within organisations.”

Recently Women in Technology founder Carol Lee Andersen told the NZ Herald that men tended to be better than women at negotiating conditions. She urges women to be prepared when they go for pay reviews.

Many women don’t have the option of negotiating wages, including women in part time and low paid work. But for those who can, NEON provides women with top tips in negotiating an equal salary based on overseas research. While negotiation is only a tool, it is one that women must recognise and use, just as men have since work began. The tips are:

• Negotiate at starting salary time…it’s the easiest money you will ever earn, Australian professor Mara Olekalns says, “never, never accept the first offer”.
• Expectations matter, so set your sights higher rather than lower. Know what you want and don’t be afraid to go for it.
• Set goals because most women hate negotiating, so having a plan helps build confidence.
• Information matters and its your responsibility to find out about going rates, pay scales, and what men in equivalent jobs earn. Tap into formal and informal information sources. Deborah Kolb, an international expert on negotiation says, “knowing benchmarks, precedents is incredibly empowering.”
• Marshall your arguments into a defensible case to increase your legitimate claims and to arm yourself with counter claims. You are much less likely to make concessions if you really believe you have quality, definitive data and good arguments to back up it up.
• Have a Plan B which includes realistic alternatives so you are not forced into a “take it or leave it” position. Plan B might mean changing jobs, accepting what’s offered in the meantime or arguing for other conditions.
• Learn from your successes and your mistakes and bank your experiences in salary negotiations for next time.
• Practice negotiation skills such as listening, not getting emotional, being quietly assertive. Realise that everyone has a “moment of anxiety” in anticipation of negotiation but men are more likely to push past this discomfort.
• Help other women in your organisation and everywhere because the gender pay gap is systemic discrimination. Collective action by women makes a difference.



Equal pay for work of equal value is a fundamental human right. But in New Zealand we have a workforce of two halves in terms of pay packets. June 2006 figures show women earn only 84% on average compared with men. The gender pay gap has closed by less than ten percent in the past 20 years.  If this slow progress continues, it will be another 40 years before we achieve pay equity between men and women.
 
The Government is committed to a five year plan to improve the gender pay gap in health, education and the public service, and has established the Pay and Employment Equity Unit to drive change.  Read more about the Pay and Employment Equity Unit's approach to diagnosing equity issues, in the Crown Entities Advice section.
 
Click here for the Pay and Employment Equity Unit's 2005 Annual Report  The  site also has progress reports, Pay Equity tools and advice.
 
Click here for the EEO Commissioner’s comments on the Pay Equity figures.
 
 

More NEON resources on Pay Equity, low paid & unpaid work, and carers: