Human Rights Commission
Media release
19 August 2009

Legal opinion firm on state sector chief execs equal employment role

Public sector chief executives must address pay inequities in their organisations as part of their good employer obligations according to a legal opinion prepared for the Human Rights Commission.

The legal opinion states that while finances remain a factor in implementing pay equity and equal employment opportunity policies, they do not relieve chief executives of this responsibility.

This would mean that chief executives will have to respond to the 67 pay and employment equity reviews completed in the public sector in the last four years. The reviews included 21 District Health Boards and the New Zealand Blood Service, two local bodies, three crown research institutes, schools and kindergartens and 38 core Government departments. The pay and employment equity reviews covered 214,470 employees or around 13.5 per cent of the New Zealand workforce.

All of the reviews except one found gender pay gaps that varied in size from 3 per cent to 35 per cent.
Common findings included:
• Women and men on unequal starting salaries for the same job
• Gender inequalities in pay progression and performance pay
• Women under represented in senior management
• Female staff had less access to training and development
• Fewer career steps for women

“Where women in that sector have been identified as being vulnerable to pay inequities, the need for action is greater. Chief executives must take reasonable steps, based on current information, to implement those duties,” the opinion states.

The legal opinion, prepared by Helen Aikman, QC, was released publicly at the Pay Equity round table, hosted by the Human Rights Commission in Wellington today.

The round table, attended by 34 union leaders, business representatives, government and policy agencies and women’s organisations, was convened following concern that progress in closing the gender pay gap has slowed because of the economic recession, the cancellation of state sector pay equity investigations and changed government priorities.

ENDS