by Paula Määttä

IX. New Zealand

C. Measures for determining and promoting the pay equality

1. Permitted grounds for wage differentials

The proviso in § 2(2) of the Equal Pay Act permits differences in wages y reason of special qualification, experience, or other qualities possessed by an employee so long as it does not involve any discrimination in relation to that employee or any other employee based on the sex of the employee.

2. Instruments used to promote equality

Equal Pay Study

In 1986, the Government initiated an Equal Pay Study, with the aim of reviewing the Equal Pay Act 1972. The Equal Pay Study drew on existing research on the economic position of women in New Zealand. It was concluded that there continued to be a wage gap between mens and womens average earnings. Moreover, the Study found a concentration of women in a narrow range of low paying occupations, and that womens skills were under-valued in comparison with mens attributes. In the Equal Pay Study, the Working Group on Equal Employment Opportunities and Equal Pay adopted the recommendations of the Royal Commission on Social Policy that pay equity (equal pay for work of equal value) be pursued in a co-ordinated way with an equal employment opportunities policy as a means of reducing the gap in earnings between men and women. The outcome of the Study was a proposal for legislation on employment equity (Labour Law in New Zealand, 10756-10757).

Job evaluation

A job evaluation system has been developed in New Zealand, the aim of which is to carry out neutral job evaluation between male and female employees in order to achieve equal pay in accordance with the value of jobs. The features which are peculiar to womens work, such as emotional and human relations factors, are observed in job evaluation. (State Services Commission 1991, 1-2.)

According to the State Services Commission, criteria such as skill, effort, responsibility and working condition are to be used in the job evaluation scheme. Skill includes knowledge, and physical, intellectual, communication, and human relations skills. Effort covers physical, mental and emotional demands. The criterion of responsibility applies to such activities as information and material resources, supervision, welfare and organisation planning and development. Working conditions are risks and environment. The job evaluation system does not place emphasis on any one particular criterion, but the criteria are to be based on each organisations own values and aims (State Services Commission 1991, 53-54).

The State Services Commission has prepared a job evaluation structure that is appropriate for every form of employment and establishment because of its gender neutral criteria. This means that they are not limited to describing only mens work or womens work, but rather, they describe features that are characteristic for both sexes. There is one exception to this gender neutrality. This is where, in respect tothe factors relevant for job organisation, the factors that highlight the mens attributes have to be equal with those that highlight the womens attributes (State Services Commission 1991, 12).

Equal Employment Opportunity

Equal Employment Opportunities (EEO) programmes have been developed to promote equal employment opportunities in the public sector. The Equal Employment Opportunity Unit of the State Services Commission assumed the responsibility for overseeing the implementation of Equal Employment Opportunities (EEO) programmes within the state sector. In the private sector, there is no legislation requiring the development of the EEO programmes and policies (cedaw 1993, 37).

The Government and private sector employers have established the Equal Employment Opportunities Trust to promote equal employment opportunities as good management practice by assisting in the implementation of equal employment opportunities policies and programmes in the private sector. The Trust produces promotional and educational materials.

The Equal Employment Opportunities Contestable Fund was also established in 1990 as part of the New Zealand Governments voluntarist approach to wage determination. Since its inception the Fund has committed over $430 000 in funding to eleven projects aimed at countering labour market discrimination in the workplace through the promotion of equal employment opportunities policies and practices.

3. Scope of comparison

A comparison of the work can be made for the female and male workers with the same or substantially similar qualifications employed in the same or substantially similar circumstances in the same employment. The Equal Pay Act does not provide for enforcement of equal pay based upon comparisons between different kinds of jobs. Comparisons are based upon the concept of equal pay for work of equal value.

According to the ILO, the principle of equal pay is to adapt to jobs performed by both sexes. Its adaptation should not be limited to the jobs at which a certain proportion of women work. In New Zealand, the principle of equal pay and the focus of comparisons have been limited to jobs that are exclusively or predominantly performed by female employees. In particular, attention has centred on low-paid female-dominated jobs (Määttä 1992, 18-19.)