Pay-equity impact concerns business

Virginia Nicholls
Virginia Nicholls
Businesses are concerned pay equity claims may demand significant wage increases, Otago-Southland Employers Association chief executive Virginia Nicholls says.

The Government announced yesterday it would consider recommendations to make it easier for New Zealanders to lodge pay equity claims.

The recommendations would be soon considered by Cabinet and appropriate legislation could be introduced by mid-year.

Mrs Nicholls said yesterday pay equity claims might make wage bargaining more complicated.

‘‘The requirement to bargain over job comparisons means more regulation and compliance for business. And it could mean wage increases in related sectors as increases gained in the public sector have a knock-on effect on wages in the private sector.’’

The legislation was not expected to initially lead to a flood of pay equity claims in the private sector, she said.

Most were expected to be in the state sector where the largest groups of workers were covered by a single employer.

The Joint Working Group on Pay Equity Principles had reported back to Minister of Workplace Relations and Safety Iain Lees-Galloway and Minister for Women Julie Anne Genter.

The working group considered how appropriate comparisons should be selected when assessing the work subject to a pay equity claim, Mrs Nicholls said.

The employers association backed additional support to readily access information and resources for pay equity claims.

It was also supportive of regulatory and support agencies having the training, knowledge and resources for pay equity claims to be resolved.

‘‘In our region, businesses believe close comparisons will have a better chance of finding ‘equal value’, especially close comparisons within the same industry,’’ she said.

Council of Trade Unions president Richard Wagstaff said there was ‘‘solid agreement’’ across the board that 2018 was the year women finally got a clear process to access the wage justice they had been denied for more than 40 years.

The Government picked up on pay equity as a priority where the last government veered off track and undermined what business and unions had already agreed to, he said.

‘‘I’m confident the strength of the recommendations from both unions and the business sector will steer Government to get the pay equity principles into law this Parliamentary year.’’

On Thursday, the CTU would present its equal pay petition to the Equal Employment Opportunities Commission on behalf of all women making claims.

Mr Wagstaff, a member of the joint working group, said he was proud to tell them the CTU had just made recommendations to the Government on how 2018 could be the year to end wage injustice for women in New Zealand.


 

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