On International Human Rights Day PECA Calls For The Government To Make Good On Pay Equity.

Press Release – Pay Equity Coalition - released 10 December 2024 - originally published on Scoop

Communities across Aotearoa are calling on the Government to make good on its commitment to pay equity for women.

“The Pay Equity Coalition Aotearoa (PECA) joins with people around the world to demand justice for women on Human Rights Day, December 10,” says Dellwyn Stuart of YWCA Auckland, spokesperson for PECA.

Pay equity is about upholding the dignity of all individuals, not least of all the women who are undervalued through discriminatory practices of underpay.

There are 65,000 workers in the care sector, and thousands of others in female-dominant industries, who have been historically marginalized and undervalued.

“Women deserve better from a Government that says it is committed to closing pay gaps.”

“Pay transparency is one small step on the way to justice for women. There is more to be done and we call on the Government to act with transparency and urgency to deliver pay equity.

“Only the Government can fix this problem in the care sector because the Government is the funder of care for the vulnerable in society. We are calling for an immediate commitment from the government to honour the established process and to prevent any attempts to overturn the results. ”

“On Human Rights Day, we must stand together to uphold the fundamental dignity of every person and that means equal pay for work of equal value for all women in Aotearoa, says Dellwyn.

Background information:

Care Workers Pay Equity Claim in New Zealand
In Aotearoa New Zealand, the pursuit of pay equity for care and support workers has been a significant journey toward addressing gender-based wage disparities. Historically, these roles, predominantly occupied by women, were undervalued and underpaid.

2017 Pay Equity Settlement
A landmark moment occurred in April 2017 when the government announced a $2 billion pay equity settlement. This agreement benefited approximately 55,000 care and support workers in aged residential care, disability support, and home and community support services. The settlement aimed to eliminate wage discrimination based on gender, offering substantial pay increases linked to workers’ qualifications and tenure.

Origins of the Claim
This settlement was the culmination of efforts initiated by Kristine Bartlett, a caregiver who, in 2012, filed a case arguing that her low wages were a result of systemic gender discrimination. Her case progressed through various courts, ultimately leading to a government-negotiated settlement in 2017.

Subsequent Developments
Despite the 2017 settlement, challenges persist. In July 2022, unions including the Public Service Association (PSA), E tū, and the New Zealand Nurses Organisation (NZNO) lodged a new pay equity claim on behalf of care and support workers across multiple employers. This claim sought to address ongoing pay disparities and ensure fair compensation across the sector.

By November 2023, a second claim was filed, encompassing a broader range of employers and aiming to extend the benefits of pay equity to more workers in the sector.

Current Status
Recent developments indicate that the progression of pay equity settlements for care and support workers has encountered delays, primarily due to actions by Te Whatu Ora (Health New Zealand). In October 2023, Te Whatu Ora subjected the existing pay equity claim to an additional review.

This decision was met with criticism from various stakeholders, including the Aged Care Association, which described the move as “unconscionable.” The association’s CEO at the time, Katherine Rich, expressed concern that this review could potentially overturn prior findings related to gender-based undervaluation under the Equal Pay Act. https://nzaca.org.nz/te-whatu-ora-review-delays-pay-equity-for-care-and-support-workers/

In 2024, Public Service Minister Nicola Willis disestablished the Pay Equity Taskforce within the Public Service Commission, citing the maturation of the pay equity settlement process. The taskforce was instrumental in assisting government agencies with pay equity bargaining following amendments to the Equal Pay Act.

Implications of the Delays
The delays have significant implications for care and support workers, many of whom are among the lowest-paid and most vulnerable in New Zealand. The postponement of the pay equity settlement affects their financial well being and the stability of the workforce, which is crucial for providing quality care to the elderly, disabled, and those with mental health issues.

Conclusion
While the government, through Te Whatu Ora, asserts that the additional review aims to ensure a robust and evidence-based settlement, it as an unnecessary delay in rectifying long-standing pay inequities