Green MP criticises pay equity reforms as harmful to Pacific and Māori women in NZ

The Government is in the process of changing the rules around how individuals can request pay equity.

Workplace Relations and Safety Minister Brooke van Velden says the Equal Pay Amendment bill will undergo urgent amendments to ensure that the pay equity claims process is "robust, workable, and sustainable”.

The costs of settled pay equity claims have surged to $1.78 billion annually.

During the second reading of the bill in Parliament, Green MP Teanau Tuiono highlighted that Pacific and Māori women earn less than Pākehā men.

"Everybody deserves dignity and decent jobs, and that includes low-paid workers, predominantly held by women workers.”

He described the Government's actions as "shameful and disgraceful”.

The median household income for Pacific people is $47,797, which is below the national median of $57,000.

Tuiono pointed out that the pay gap for Pacific workers in the public service has widened to 17.2 per cent, up from 16.6 per cent last year.

Pacific women are experiencing the largest disparity, earning 20.9 per cent less than the average male wage.

Green MP Teanau Tuiono. Photo/Green Party NZ

In response, Van Velden says the updated framework will provide betterguidance for assessing sex-based undervaluation of work.

The changes include:

• Jobs must have been at least 70 per cent female for the past 10 years to qualify.

• There must be clear evidence that the work is or has been underpaid.

• Stricter rules will be implemented when comparing similar male-dominated jobs.

• Employers will be allowed to phase in pay increases to remain financially sustainable.

Watch Brooke van Velden make the announcement

The changes will discontinue current pay equity claims, but new claims can be submitted under the amended Act if they meet the updated requirements.

The Equal Pay Amendment bill was introduced and passed through all stages in Parliament on Tuesday under urgency.