Te Kāhui Tika Tangata Human Rights Commission has welcomed proposed pay transparency policies designed to close the gender pay gap for workers across Aotearoa New Zealand.

The Government today announced it is progressing with pay transparency laws that would require around 900 organisations with over 250 employees to report on their gender pay gap.

“This is a significant leap forward for our wāhine who have been fighting for pay equity for decades now,” exclaimed Saunoamaali’i Karanina Sumeo “Mandatory measuring and reporting of gender pay gaps through proposed pay transparency policies is the first step in addressing workplace discrimination and advancing opportunities for women across Aotearoa.”

Today’s announcement comes after five long years of sustained advocacy and campaigning led by the Commission alongside women’s groups, unions, businesses, young workers, private individuals, public service, Tangata Whenua and especially our Pacific communities through the Pacific Pay Gap Inquiry — a collective effort aimed to eliminate discriminatory pay practices that breach the rights of New Zealanders and lead to large pay gaps.

“This has been a long journey to get there – one not without disappointment and challenges. It is a testament to years of relentless advocacy and shared commitment by the Commission and its partners to uphold the human rights of all workers across New Zealand,” reflected Sumeo.

The Pacific Pay Gap (PPG) Inquiry report released last year by the Commission found that in 2021 for every dollar earned by a Pākehā man, Pākehā women were paid just 89 cents. For Māori men that drops to 86 cents and Māori women 81 cents. Pacific men were paid just 81 cents and Pacific women only 75 cents when compared to Pākehā men.

Among the recommendations was the urgent introduction of pay transparency legislation to ensure all workers have access to pay information, equal employment opportunities, and promotions and are fairly rewarded for the work they do.

The new policies announced today will initially apply to organisations with 250 employees and will later include those with 100 workers.

“We know that it is essential for organisations to also report on their ethnic pay gaps that are disproportionately affecting our Māori, Pacific, Asian and workers from ethnic groups — where the largest gaps exist,” added Sumeo.

“We are essentially asking a significant number of vulnerable workers across Aotearoa to wait for equity, sending them a disheartening message that their lived experiences of pay and racial discrimination don’t require urgent addressing,” said Sumeo.

“I remain hopeful that work will soon progress on closing ethnic pay gaps before any legislation is drafted and that in time it will apply to organisations of all sizes.”

A nationwide survey conducted by Talbot Mills Research in May 2023 found nearly 2 out of every 3 New Zealanders consider pay gaps to be a ‘significant’ or ‘very significant’ issue (64%), with a similar number supporting new pay transparency policies (63%).

“With such strong public support for pay transparency policies, we are urging commitment to broaden coverage of the policies to include ethnicity and disability so everyone regardless of the size of the organisation they work for, aren’t subject to discriminatory pay practices. As EEO Commissioner, I will continue to keep a close eye on progress towards measuring, reporting and closing pay gaps experienced by all our workers, especially Māori, Pacific, Asian, ethnic minority and disabled workers who are most impacted by pay gaps,” continued Sumeo.

The PPG Inquiry revealed that structural and direct racism were contributing to pay gaps. By reporting on gender, ethnic and disability pay gaps we can start to address this important human rights issue for those impacted the most.

“I’m confident that pay transparency policies can help to create a fairer society, where workers are empowered to maximise their abilities, be fairly compensated for their work, thrive in the workplace, and live in dignity.”

“We recognise that mandatory reporting on pay gaps is only part of the solution. It’s crucial for employers to take immediate action on their pay gaps and be proactive about putting plans in place to close them. The real work begins now,” added Sumeo.

“Everyone has the right to work, freedom from discrimination, the right to equal pay for equal work. Any Government of the day has an obligation under Te Tiriti to work with Māori to secure equitable outcomes – closing pay gaps through ethnic pay gap reporting is a good place to start.”

The 2022 PPG Inquiry report also recommended the Government amend the Equal Pay Act 1972 to expand prohibited grounds to also include ethnicity and disability, implement the recommendations of the Tripartite Working Group on Better Protections for Contractors, ratify the International Labour Organization (ILO) 190 Violence and Harassment Convention (2019) and raise the minimum wage to the same level as the living wage.

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