SUBMISSION

to the: - Local Government

on the:- Next Steps Towards Pay Equity

from:- NZ Federation of Graduate Women

WHO WE ARE

The New Zealand Federation of Graduate Women (NZFGW) is an incorporated society founded in 1921. It is affiliated to the International Federation of University Women, headquartered in Geneva and holding official observer status at UNESCO. The purposes of the Federation include:

• to further the development of education
• to encourage the full application of women's knowledge and skills to the issues that arise at all levels of public life, and to encourage women's participation on resolving these problems.

We would be happy to provide further information if you require it contact Anna Davidson, anna.davidson@paradise.net.nz

Context

NZFGW welcomes the opportunity for pay equity to once again be bought to the table through the Ministry of Women's Affairs discussion document. We believe achievement of pay equity would resolve many of the social and economic challenges currently confronting this country.

NZFGW endorses the view that the gender pay gap results from undervaluing and thus under remuneration of women working in predominantly female jobs and as pointed out future generations should not be constrained by these outmoded ideas about what women and the work they do are worth.

NZFGW believes there are significant social and economic benefits of pay equity, these being:

• a more cohesive and co-operative workforce - inequities and inequalities in remuneration generate industrial unrest and consequently social dislocation
• enabling those who enter the low paid traditionally female occupations to save for their retirement
• assisting solo mothers to earn their way out of poverty, so benefiting themselves, their children and taxpayers
• a more equitable system for those with students loans by decreasing the time taken to repay loans and thus the amount of money to be repaid,
• encouraging people to seek careers in those occupations such as teaching, nursing and social work which we believe are undervalued.

We believe there is a cost is to New Zealand's economy and society by not implementing pay equity. Further, the recruitment and retention problems being experienced in, for example, the education and health fields have arisen predominantly as a consequence of undervaluing the significance of these occupations. These are issues the Ministry should address with the Ministry of Labour (Labour Market Policy Group) and the Ministry of Social Development (Sector Policy, Employment).

In our view, pay equity is a human rights and social justice issue. It is an issue which has emerged from a historic situation where male and female wage rates were differentiated, with males being paid more on the assumption that his wage should support him, his wife and children. This approach has flowed on to occupational categories. In those occupations where more than 70% of the workforce is female, workers receive lower remuneration than occupations in which the workforce is more than 70% male. The importance of having workers who have the capability, skills and experience to undertake the work required to meet New Zealanders' basic, and higher, needs should be a primary consideration in setting remuneration. The historic basis for setting remuneration is no longer tenable.

Not only is the assumption invalid today (women support their families where there is no male breadwinner, or he brings in too little to support the family's needs), but it also belittles the effort, skills and experience of the people, men and women, who enter the so-called women's occupations. It is also encouraging an oversupply of workers in occupations where remuneration is typically high (e.g. accountancy and law) and an undersupply of workers where remuneration is typically low (e.g. the social services).

PAY EQUITY STRATEGIES

General Principles supported by NZFGW:

1. Pay equity strategies based on group rather than individual claims.

It is on record that New Zealand women have been unwilling to complain about pay discrimination under the Human Rights Commission Act 1977 and the Equal Pay Act 1972 respectively, therefore pay equity needs to clearly be introduced as an employment right.

2. Proactive initiatives by management or unions.

If cases taken by individuals will do little to advance pay equity, it follows that management or union initiatives will be called for as highlighted in the discussion document.

One of the encouraging developments for women workers during the 1980s was the emergence for the first time of women among the leaders of the trade union movement. These women were strong supporters of the 1990 pay equity legislation. Given that commitment, it is likely that they will be keen to support pay equity moves on behalf of their women members.

3. Placing responsibility for pay equity with an independent agency.

Such an agency would assist employers in meeting their obligations and assist employees and unions in requiring employers to meet their obligations. New Zealand's unsatisfactory experience with using existing industrial relations institutions to further women's employment rights provides strong evidence for setting up independent agencies tailored to the particular problem or problems being addressed.

4. Phased introduction of pay equity.

We see this approach as necessary to safeguard industries where large groups of workers are all shown to be eligible for an increase in pay. We make this recommendation in order to make pay increases more realistic for employers.

5. Public Sector taking the initiative.

With the public sector leading the way, and with widespread use of job assessments to enable pay parity for work skills and experience of equivalent value, the adoption of similar processes could be realistically promoted in the private sector.

6. Education

For pay equity to be adopted as a successful social and economic strategy education has to be implemented at every level.

7. Avoiding unnecessary bureaucracy and costs to employers

We support the concept of pay audits to be completed by employers with monitoring and assistance from a central agency to help them fulfil their obligations. The central agency should attempt to increase compliance and outcomes through random monitoring as opposed a mandatory approach, which will increase bureaucracy and cost to the employer.

We strongly support this initiative taken by the Ministry of Women's Affairs in placing pay equity on the agenda again as we believe the achievement of pay equity would resolve many of the social and economic challenges currently confronting this country. However, the reality of achieving pay equity will rest on how successfully it is implemented across all sectors of New Zealand.