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Working Towards Pay and Employment Equity for Women

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To request a copy of the review workbook or to order an electronic version with charts please contact the Pay and Employment Equity Unit

Ministers' Foreword

As New Zealanders, we pride ourselves on a sense of fair play, but our nation’s pay packets reveal a workforce of two halves: in 2004, women earned 86.4% of the average hourly earnings of men. While women have come into the workforce in record numbers, and achieved at the highest level, when it comes to hourly pay not much has changed in the last thirty years. Since 1978 the pay gap between men and women has reduced by just 8.4%. At that rate, women will have to wait until 2045 to get equal pay for work of equal value.

That’s why the government established the Pay and Employment Equity Unit in 2004. Its role is to implement a five-year action plan that will increase the equity of the New Zealand labour market. In practical terms, this means working alongside employers, employees, and unions to identify and eliminate the causes of inequality. This review workbook is a resource designed specifically for that purpose.

The Pay and Employment Equity Unit also administers a contestable fund, which supports initiatives by employers and unions to promote pay and employment equity. Joint applications to the fund from employers and unions planning to work together are particularly welcomed, recognising the fact that equity is not something that either workers or employers can address on their own.

New Zealand’s workforce is changing. Over the past 50 years, women’s participation in paid work has significantly increased. In 1959 just 29% of working-aged women were in the paid workforce. Now that figure is 61%. Yet despite the increase in participation, when payday rolls around women’s work is still undervalued. By using this review workbook, workplaces can take a very positive step towards ensuring that the skills, experience and productivity contributed by women receive a fair reward.

Hon Ruth Dyson, Minister of Labour
Hon Dr Michael Cullen, Minister of Finance
Hon Pete Hodgson, Minister of Health
Hon Steve Maharey, Minister of Education
Hon Annette King, Minister of State Services

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Secretary of Labour’s Foreword

The current environment of high employment presents New Zealand with both opportunities and challenges. We have the opportunity to bring more people into the workforce, and to offer a higher standard of living as a result. And we have the challenge of attracting and retaining the workers we need.

Pay and employment equity will help us make the most of the opportunity, and to meet the challenge. By ensuring that everyone in paid work is fairly rewarded, we ensure there are equal incentives for women to enter and stay in the workforce. By removing the barriers to participation of women in paid work, we can help build a strong economic future for New Zealand.

The purpose of the review process is to assist people in New Zealand workplaces to identify their gender pay and employment equity issues and to develop and implement a response plan.

During the review, workplaces will have the opportunity to assess how they ensure that:

The review workbook is a six-step process that can be modified to fit the wide range of New Zealand workplaces. It will build on existing workplace data and focus the collection and analysis of new data in a way that is meaningful for each workplace. The analysis will lead to the key part of the process – the development of a rigorous and meaningful response plan to ensure that solutions can be implemented.

When the participation of women and men in the workforce is truly equitable, everyone benefits. Workplaces make the most of the skilled and experienced people they have, and workers get fair rewards for their work. Pay and employment equity is a cornerstone of a fair and modern labour market, and New Zealanders expect nothing less.

James Buwalda
Secretary of Labour

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Contents



Published by the Department of Labour
Wellington, New Zealand
First edition August 2005
ISBN 0-478-28025-4
This edition January 2006
ISBN 0-478-28032-7

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