16.08.2023

“For every dollar a Pākehā man makes…” – the latest development in addressing gender and ethnicity pay gaps

Mandatory reporting systems that would require businesses to report their gender pay gap might be on the (distant) horizon.

In March 2022, the Parliamentary Education and Workforce Committee recommended that the Government develop pay transparency measures as part of their report on pay transparency.  In the same year, research had shown there was around a 9% difference between men’s and women’s earnings, and that the gap was usually unexplained.  Pay gaps were also observed between ethnic groups and for people with disabilities. 

This report and recommendation came one year after the infamous Pacific Pay Gap Inquiry Report, which found that for every dollar a Pākehā man made in 2021, Pākehā women earned 89 cents, while Māori men earned 86 cents, and Māori women and Pasifika men earned 81 cents.  The earnings for Pasifika women were reportedly the lowest, at 75 cents.

The Government has recently announced that it intends to implement mandatory pay reporting systems which would at first require businesses with more than 250 employees to publicly report their gender pay gap, and later those with more than 100 employees.

Legislation to address the issue of gender pay gaps (and implement any such reporting system) is likely a while away.  It has not yet been drafted, and although on the Government’s agenda, progress will not be made before the upcoming election.  Additionally, there are of course no guarantees of its fate after the election.

However, the issue is longstanding and has been described as having “remained stubbornly” at the same level for the last decade.  Action is clearly needed to make progress in this space, and interest groups have certainly been turning up the pressure for change.

The next phase for the intended legislation is public consultation.  The Government has indicated that, in addition to gender, it is also interested in addressing ethnicity pay gaps, and would like wide ranging input from stakeholders.  At this stage, it does not seem that the legislation will address disparities for people with disabilities, although this could change.

Whether legislation will indeed come to fruition, it is worth watching this space for any further developments.  We will keep you updated!

If you have any questions about gender and ethnicity pay gaps in the workplace, please get in touch with our Employment Law Team or your usual contact at Hesketh Henry.

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

iStock  Construction dpi
Call me? Care is required when calling on a bond
In the recent High Court decision Hawkins Ltd v Elizabeth Properties Ltd, Hawkins was successful in preventing EPL from calling on a $3m bond pending determination of a dispute principally over the ap...
10.04.2024
HH News NZS  Release
What You Need to Know About the New NZS3910:2023
The new NZS3910:2023 (conditions of contract for building and civil engineering construction) was released by Standards New Zealand in December 2024 (see our article here).  It is now gaining relevan...
10.04.2024 Posted in Construction
Money stack black and white
Income is classified as relationship property – surprised?
For all couples, embarking on the journey of building a life together involves not only love and commitment but also financial considerations.  As you navigate through shared finances, it’s imp...
26.03.2024 Posted in Private Wealth
Forestry Unsplash ruben hanssen wl ylTCM
Forestry: Regulatory Roundup March 2024
The challenging economic environment for New Zealand’s forestry industry continues, with China’s demand for our logs remaining subdued. Moreover, in addition to the change in Government, t...
25.03.2024 Posted in Forestry & Property
solar
OIO Spotlight: Solar projects, exempted interests and farmland considerations
As New Zealand renewable energy developments continue to attract interest from global investors, we take a look at some recent approaches of the Overseas Investment Office in assessing consent require...
BCC Trade Credit v Thera Agri Capital: Policyholder Successful Against Credit Insurer in Australian Court of Appeal Decision
When applying for trade credit insurance, a prospective insured will typically provide information on the financing arrangements that will form the basis of cover. Where there is deviation from these ...
05.03.2024 Posted in Insurance & Trade and Transport
iStock
Parker v Magnum Hire: A new era of personal grievance remedies awarded in the Employment Relations Authority?
If you heard a sudden loud noise last week – no it wasn’t a jet plane flying overhead, it was the gasp of employment lawyers across New Zealand when the Employment Relations Authority published it...
26.02.2024 Posted in Employment
SEND AN ENQUIRY
Send us an enquiry

For expert legal advice, please complete the form below or call us on (09) 375 8700.