Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

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

The Committee notes the observations by the New Zealand Council of Trade Unions (NZCTU) and Business New Zealand (Business NZ), submitted by the Government with its report.

Articles 1 and 2 of the Convention. Gender pay gap. The Committee notes from the statistical information provided by the Government with its report that, in the June 2015 quarter, women’s median hourly earnings were 21.23 New Zealand dollars (NZD) compared with NZD24.07 for men, with a pay gap of 11.8 per cent. The Quarterly Employment Survey for the same quarter further indicates that women’s earnings in the public sector represented 81 per cent of men’s earnings, while in the private sector they accounted for 84 per cent. When comparing average weekly earnings by gender and ethnicity, data show that earnings rates are much lower for ethnic groups other than European and, in particular, that the gender pay gap for Maori and Pacific Island women in relation to European men’s average weekly earnings was 40.8 per cent and 43 per cent, respectively. The Committee notes the Government’s indication that, while a downward trend of the pay gap has generally been observed, this has stabilized in the last six years and reducing it further is a priority for the Government. The Committee also notes Business NZ’s observation that statistical data tend to provide a misleading picture of women’s employment, as they do not give an indication of relevant factors, such as the occupational level at which women are working, areas of study, and years of experience, among others. Business NZ also notes that absences during employment are another factor that is traditionally not fully considered in calculating wage differences. The Committee also notes the NZCTU’s observation that the figures provided in the Government’s report do not account for part-time work, where most women are engaged with lower than average hourly earnings. The Committee notes that, when full- and part-time work are combined, the gender gap for weekly earnings widens to 28.6 per cent. According to the NZCTU, measures are needed to promote a fairer distribution of family responsibilities between men and women and facilitate the reconciliation between family and work obligations. The Committee further notes that in Business NZ’s view emphasis should be placed on better education and training opportunities for women together with encouragement to aspire to higher levels of responsibility. In this regard, it notes the information provided by the Business NZ on measures directed at providing trade training and employment opportunities for Maori and Pacific Island women. The Committee asks the Government to indicate the measures adopted or envisaged to address the gender pay gap and its underlying causes, including measures directed at addressing gender pay gaps between, and within, ethnic groups, and their impact. The Committee also requests the Government to continue to measure the nature and the extent of the gender pay gap, including its underlying causes, and to provide statistics on the gender pay gap and its evolution in the various sectors and occupations, disaggregated by ethnicity and sex.

Application of the principle in the public service. The Committee notes from the 2015 Human Resources Capability (HRC) Survey of Public Service Departments, that the gender pay gap in the public service is 14 per cent. It also notes that gender pay gaps by occupation group ranged from 13.7 per cent for managers to 1.6 for contact centre workers. The Committee notes the Government’s indication that varying measures have been adopted with a view to reducing the gender pay gap in the public sector. These include the establishment of a tripartite Working Group tasked with developing principles for dealing with claims of equal pay for work of equal value under the Equal Pay Act, setting up leadership and talent work programs directed at women, and developing flexible workplaces and working arrangements to better accommodate caring responsibilities of men and women. The Committee notes that in the NZCTU’s view the latter initiatives have little impact in practice on narrowing the pay gap. The NZCTU indicates that flexible work requests in the public sector are often refused and flexibility, in some cases, is merely translated into a reduction of working hours and, consequently, of wage levels for the concerned workers. In this regard, the Committee notes the Government’s reply that a survey of workers in 2012 found that just over half of respondents had access to flexible hours and, according to the most recent survey of employers, the majority of employers (at least 95 per cent) who received a request for flexible working arrangements agreed to all or some of the requests received. The NZCTU also points out the need for a focus on increasing wages in traditionally female-dominated sectors and more proactive measures on the part of the Ministry of Women’s Affairs to promote gender equality. The Committee asks the Government to provide specific information on the application in practice of the measures taken to reduce the gender pay gap in the public sector, including the measures taken to address its underlying causes, and their impact. The Government is also asked to continue to provide statistical information on the gender pay gap in the public service by occupational group.

Collective agreements. The Committee refers to its previous comments and notes the Government’s indication that the Employment Relations Amendment Act, 2014, aims to increase flexibility in collective bargaining. It also notes that according to the NZCTU the amendments introduced into the Employment Relations Act would affect particularly women, and Maori or Pacific Island people, in the light of the ability recognized to employers with less than 20 employees to unilaterally reduce pay and hours of work. The Committee encourages the Government to assess, in cooperation with workers’ and employers’ organizations, the impact that the amendments introduced in the Employment Relations Act may have on addressing the gender pay gap, and in particular on the role of collective agreements in addressing wage inequality.

Enforcement. The Committee notes the observations by the NZCTU that a proactive approach in monitoring pay equity and equal pay claims would be needed and the Government’s reply that initiatives to monitor or support pay equity may be considered after the discussion of the Joint Working Group’s recommendations is concluded. The Committee asks the Government to provide information on any specific steps taken with a view to strengthen the application of the Convention following the endorsement of the Joint Working Group’s recommendations, including as regards monitoring of equal pay, and to continue to supply information on any cases related to the principle of the Convention dealt with by labour inspectors, the Employment Relations Authority, the Employment Court and any other competent authorities.