The Government's decision to scrap the Department of Labour's pay and employment equity unit shows a lack of commitment to addressing equal pay for work of equal value, the New Zealand Nurses Organisation (NZNO) says.
The organisation had worked closely with the unit to achieve fairness in the way work -- especially that of women -- was recognised and valued, industrial adviser Glenda Alexander said.
"Women workers are still paid, on average, 12 percent less than their male counterparts in similar roles performing similar work," Ms Alexander said.
"There is clearly still a need for the unit to continue its work."
NZNO had 43,000 members, most of whom were women, and had made gains in recent years to reduce the gender pay gap through collective bargaining, but Ms Alexander was concerned that many other workers, such as education support workers, were still paid unfairly.
The Public Service Association (PSA) said scrapping the unit "nails the coffin shut" on gaining pay equity for women.
PSA national secretary Richard Wagstaff said the unit was working to address a major injustice in New Zealand.
"By scrapping the unit, the Government is turning its back on women in New Zealand and saying `we don't care that you're not being fairly rewarded for the work you do'."
Service and Food Workers Union (SFWU) northern regional secretary Jill Ovens said the unit's canning was "a tragedy and another step in the National-led government revealing its true colours".
Nearly 70 percent of the union's 24,000 members were women, Ms Ovens said.
"Nearly 40 years after a National government passed the first Equal Pay Act, it is a tragedy that another National Government has closed its mind to further improving the pay and conditions of working women."
Minister of Labour Kate Wilkinson said seven jobs would go as part of the "reprioritising" of government spending.
She said the unit had worked hard researching the pay gap but "achieving the goal of closing the gap can't be realised by having a singular focus on the state sector".
"This issue is the responsibility of all employers and good employers will work to tackle it.
"Distestablishing the [unit] will not mean women lose their voice on employment issues," Ms Wilkinson said, because the Government was advised by other groups including the National Advisory Council on the Employment of Women.
Labour women's affairs spokeswoman Sue Moroney said the scrapping of the unit showed women were at the bottom of National's list of priorities.
She began circulating a petition on pay equity after the Government stopped two pay equity investigations on school support staff and social workers.
The petition called on the Government to reinstate the investigations, honour the implementation of completed pay investigations and develop a strategy to eliminate the gender pay gap.