The New Zealand government’s proposed overhaul of the Equal Pay Act has triggered concern among major union bodies, raising questions about how the changes could influence employment policies, liability exposure, and human capital strategies for organisations, including those in the insurance and financial sectors.
Associate Workplace Relations and Safety Minister Brooke van Velden this week outlined amendments aimed at streamlining pay equity claims.
The changes would curtail current and pending settlements under the existing framework, particularly affecting roles in traditionally female-dominated sectors such as health care, education, and social services.
The New Zealand Council of Trade Unions (NZCTU) warned that the revisions would reduce access to pay equity remedies and potentially unravel progress made through earlier settlements.
“These changes will gut the Equal Pay Act and lock in gender discrimination and inequity for years to come,” said NZCTU secretary Melissa Ansell-Bridges. “Pay equity is an issue of justice, not penny pinching. There is no excuse to ignore injustice, especially when employers’ business models have been predicated on the exploitation of women. The coalition is prioritising tax cuts for the rich over justice for poorly paid women.”
A major concern raised by labour organisations is the removal of review mechanisms embedded in prior agreements, which allow for periodic adjustments. According to the NZCTU, those clauses help ensure that pay equity gains are not eroded over time by inflation or structural shifts in employment.
The proposed amendments are expected to be passed under urgency, a legislative process that limits public consultation.
In response to the announcement, a coalition of major unions launched a petition on May 7 calling for the restoration of the existing pay equity process.
In less than 24 hours, over 5,000 individuals had signed. The unions are demanding the reinstatement of cancelled claims and the preservation of access to equitable wage assessments for affected professions.
Ansell-Bridges said pay equity outcomes are vital to household stability, especially for workers in lower-paid roles.
“The proposed changes will reverse decades of progress to correct pay rates for women and people of all genders working jobs that have been undervalued due to sexism,” she said. “This is about equity and justice – but it’s also about dignity and the cost-of-living,”
The proposed legislative shift comes as new labour data paints a mixed picture of the economy.
Statistics New Zealand reported on May 7 that while the official unemployment rate remained at 5.1%, the number of full-time workers declined by 45,000, with a corresponding 25,000 rise in part-time employment.
Union economist Craig Renney noted that many workers are not securing sufficient hours to meet basic needs. Sectors with the largest job losses include construction, manufacturing, retail, and key public service areas such as education and health.
The figures align with an Ipsos New Zealand survey, which found that 25% of adults are still struggling to cover everyday costs – a figure that has remained relatively steady since 2022. The report found that economic insecurity is particularly pronounced among low-income groups and women, the latter also being more likely to express concerns about job stability.
