Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

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

1. The Committee notes the extensive information provided by the Government in its report and the attached documentation, as well as the comments made by Business New Zealand and the New Zealand Council of Trade Unions (NZCTU), and the Government’s response to these comments.

2. Articles 1 and 2 of the Convention. Legislative developments. The Committee recalls that in New Zealand equal remuneration for men and women who are performing the same or substantially similar work is required under several Acts, including the Employment Relations Act 2000 (ERA), the Human Rights Act 1993 (HRA) and the Equal Pay Act 1972 (EPA). Further definition of discrimination contained in the ERA appears to be restricted to cases where employees work for the same employer. The Committee previously emphasized the requirement in the Convention for equal remuneration to be paid for "work of equal value", a reference that goes beyond the concept of the same or similar work. In addition, with respect to the scope of comparison, the Committee considered that the scope should be as wide as allowed by the level at which wage policies, systems and structures are set.

3. The Committee notes that plans to adopt new equal pay legislation were abandoned in December 2004. The Government states that such legislation will instead be considered in conjunction with the development of the Government’s other pay and employment equity initiatives. While acknowledging the need to update existing equal pay legislation to improve its workability and application, the NZCTU supported the withdrawal of the legislative amendments concerning equal pay until further work could be done to ensure that any updating of the legislation is consistent with the Convention. The Committee asks the Government to keep it informed of any new initiatives to amend the current equal pay legislation, and trusts that its comments will be taken into account, with a view to bringing the national legislation into conformity with the Convention.

4. Articles 2 and 3. Measures to promote equal remuneration. The Committee notes with interest the report of the Task Force on Pay and Employment Equity in the Public Service and the Public Health and Public Education Sectors issued in March 2004. The Task Force has defined "pay equity" as "men and women receiving the same pay for the same work and for work which is different, but of equal value". It identified three key factors that affect women’s pay and employment equity: (1) the jobs that women do; (2) how jobs are valued; and (3) how jobs are organized. Noting in particular the recommendations made by the Task Force with regard to collective bargaining, minimum wage setting, the development of a gender-neutral job evaluation tool, equal pay audits and the establishment of a process for remedial settlements of pay equity claims, the Committee asks the Government to provide information on the progress made in implementing the comprehensive set of recommendations and the plan of action put forward by the Task Force. The Government is also asked to provide information on the measures taken or envisaged to promote the application of the Convention in the private sector, including any cooperation with the social partners in this regard.

5. Complaints and enforcement mechanisms. The Committee notes that the number of individual equal pay cases brought before the competent bodies remains low. While noting Business New Zealand’s view that this could be explained by the fact that the concept of equal pay has been accepted in New Zealand, the Committee emphasizes that the absence of complaints does not indicate per se the absence of discrimination, but rather calls for an examination of the operation of complaints mechanisms currently available. The Committee also notes the NZCTU’s position that, in order to ensure compliance with the Convention, equal pay audits and remedial settlement of equal pay claims should be underpinned by legally binding enforcement mechanisms. The Government expressed the view that compliance with the Convention could be achieved effectively by addressing the underlying causes of the gender pay gap, including the development of job evaluation tools and the use of existing accountability mechanisms and collective bargaining. The Committee considers however that the application of the Convention should be achieved through a combination of various means, including effective complaints and enforcement mechanisms. While it would be up to the Government, in consultation with the social partners, to determine the nature and structure of such mechanisms, their design and operation should contribute to the Convention’s objective which is the elimination of unequal remuneration for men and women performing work of equal value. The Committee asks the Government to provide information on the measures taken to ensure that in those cases where men and women do receive unequal remuneration for work of equal value the matter can be addressed effectively through appropriate complaints and enforcement mechanisms.

6. The male-female earnings differential. The Committee notes that according to the Household Labour Force Survey Income Supplement there was a 4 per cent increase in the  female-to-male ratio of average hourly earnings between 1997 and 2003. Progress in closing the gender pay gap was made in the age groups of 24-54, while the gap slightly increased for the other age groups. According to the Government, the gender pay gap decreased similarly for the European, Maori and Pacific New Zealanders, but it remained widest among European New Zealanders. The Trust Diversity Survey Report 2004, issued by the Equal Employment Opportunity (EEO) Trust, indicates that the hourly earnings gap has increased since 2003, while the weekly earnings gap slightly decreased, indicating an increase in hours worked by women. The Committee asks the Government to continue to provide updates on statistical information concerning men’s and women’s earnings in the private and public sectors, including data disaggregated by sex and ethnic group. The Government is also asked to provide information on any measures taken to implement the Task Force’s recommendation that further work should be done to determine what data would be appropriate for businesses and Statistics New Zealand to collect to give an overview on pay and employment equity.

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