Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

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

The Committee notes the extensive information in the Government’s report as well as the comments by the New Zealand Council of Trade Unions (NZCTU) and of Business New Zealand (Business NZ) attached to the Government’s reports on this Convention and on the Discrimination (Employment and Occupation) Convention, 1958 (No. 111).

1. Articles 1 and 2 of the Convention. Equal pay legislation. The Committee recalls its previous comments in which it emphasized that the requirement in the Convention for equal remuneration for men and women for work of equal value goes beyond the concept of equal remuneration for the same or similar work as currently provided for in the Employment Relations Act 2000 (ERA), the Human Rights Act 1993 (HRA) and the Equal Pay Act 1972 (EPA). Furthermore, the scope of comparison has to be as wide as possible, as allowed by the level at which wage policies, systems and structures are set, and not restricted to cases where employees work for the same employer, as provided for in the ERA. The Committee notes the Government’s statement that it has no plans to amend the current equal pay legislation. Instead, it is implementing a Pay and Employment Equity Plan of Action to give effect to the principle of equal remuneration for work of equal value. The Committee recalls its 2006 general observation on this Convention underlining the importance of legislation fully reflecting the principle of the Convention. The Committee urges the Government to consider amending its equal pay legislation at the earliest opportunity, so as to provide not only for equal remuneration for equal, the same or similar work, but also to prohibit pay discrimination that occurs in situations where men and women perform different work that is nevertheless of equal value. The Government is also requested to keep the Committee informed of any jurisprudence indicating that the relevant legislative provisions concerning equal pay are being interpreted by the courts within the broader meaning of Articles 1(b) and 2 of the Convention. 

2. Article 2. Measures to promote equal remuneration for work of equal value. The Committee recalls its previous comments regarding the recommendations made by the Task Force on Pay and Employment Equity in 2004, and notes with interest the various initiatives described in the Government’s report implementing the Five Year Plan of Action on Pay and Employment Equity. It notes in particular that pay and employment equity reviews are being carried out in the public service and the public health and education sectors, most of which will be completed in the course of 2008. Guidelines for pay investigations reviewing the value of the work and the factors and processes affecting remuneration are also being developed and will primarily target female‑dominated occupations. Claims for additional funding for remedial pay settlements arising from pay and employment equity reviews will be considered within existing budget processes through a tripartite process. The Committee further notes that Phase Two of the Action Plan will cover crown entities and state-owned enterprises and government-funded contract workers, and that consideration will be given to extending the pay and employment equity exercise to employees in local government and in the private sector. In this regard, the Committee notes the concern expressed by Business NZ that the private sector cannot rely on the taxpayer to fund pay increases for “female” occupations resulting from pay equity reviews. This would be particularly true in the health sector where private providers may have difficulty in matching “remedial” pay increases granted to nurses working in public institutions. Lower paid employees in the private health sector, where employment opportunities are often reliant on government contracting, may well be in that situation because state funding is inadequate to allow for the pay increase that might otherwise be considered necessary. According to Business NZ, most perceived payment inequities are to be found in the state sector where high numbers of women work in what are seen as the “caring” professions. The Committee asks the Government to provide information on the results achieved by the pay and employment equity reviews and the pay investigations undertaken in the public sector, as well as any specific follow-up action being given to the outcome of these reviews. The Committee also asks the Government to indicate how it intends to address difficulties encountered by employers in the private health sector in matching remedial pay increases granted to employees in public institutions. Please also keep the Committee informed of any steps that are being taken to extend the Pay and Employment Equity Plan of Action to other employees, including those in the private sector. 

3. Article 3. Job evaluation. The Committee notes with interest the development of the “equitable job evaluation tool” – a gender-neutral job‑evaluation system for use in pay investigations and for general use – which has been specifically designed to facilitate better recognition and contribution of female-dominated occupations to performance of important areas of the state services. In addition, the Committee notes that Standards New Zealand has developed a voluntary “gender inclusive job evaluation standard”, a practical guide and reference point for ensuring that job evaluation and the remuneration process are carried out in a gender-inclusive way. The Committee asks the Government to provide further details on the use of the gender-neutral job evaluation tools that have been developed and their impact on reducing gender pay differentials in the public as well as in the private sectors.

The Committee is raising other points in a request addressed directly to the Government.