The Pay Equity Amendment Act
On 6 November 2020, making a pay equity claim became a whole lot simpler when the Equal Pay Amendment Act came into force.
Because the education sector is 85% female, the Act opens up major opportunities for all NZEI Te Riu Roa members. The Act gives us a much clearer path to pay equity for the many female-dominated roles that have historically been undervalued because they involve “women’s work” and the care and education of children.
How does the new legislation change the pay equity process?
In passing very important amendments to the Equal Pay Act, the Government has made it clear that it wants the gender pay gap to close and for unions to play an important role in doing so. These amendments to the Act provide significant opportunities and a responsibility on unions to act decisively to end wage discrimination based on gender in NZ workplaces.
- The Act applies to any workforce in which at least 60% of employees are women.
- It’s a much clearer process to raise a claim.
- The employers we raise claims with have to engage in the process.
- It’s a collaborative process more familiar to unions and businesses.
- We can negotiate with employers in good faith and there is access to mediation and dispute resolution services if we can’t reach agreement.
Steps to pay equity
We'll raise a claim with your employer
NZEI Te Riu Roa will raise a claim with your employer. In order to do this, we must show that the role is female dominated and that we have at least one member employed by that employer at one or more of the employer’s sites or services. Employers will not receive notification of who is a member.
The employer agrees there are grounds for a case
NZEI Te Riu Roa will work with employers to establish there are grounds to believe the work done has been undervalued due to gender.
We will gather information about the work done, especially the less visible parts of the work.
This may involve interviewing people who undertake that work and assessing job descriptions.
Building a picture
We’ll use the information gathered to get a clear picture of what the work involves.
We will use this to build a picture of the skills, responsibilities, demands and conditions involved in the work.
To find appropriate comparators; those doing the work of equal value. Equal value means work may be similar or different, but requires a similar level of skill, hold similar levels of responsibilities, or has similar demands and working conditions as the role we are assessing.
Appropriate comparators are male- dominated roles with jobs of equal value or female-dominated roles that have settled a pay equity claim (so are no longer affected by gender-based undervaluation).
We assess the information we have gathered about the role and the information we have gathered about the comparators using the gender-neutral assessment tool Pay Equity Aromatawai Mahi.
The negotiations to settle the claim will take place, this is when we’ve seen the importance of people getting involved and campaigning for the win.
Proposed settlement agreed
The proposed settlement is shared with everyone covered by the claim, who then vote on whether to accept the settlement.
Winning pay equity!
If those covered by the claim vote in favour of the settlement, we have achieved pay equity!
What does the pay equity process look like for our employers?
Employers will receive a Pay equity claim from NZEI Te Riu Roa for members employed or doing the same or similar work.
The claim will state the following information:
- state the name and address for service of the NZEI Te Riu Roa
- state the date on which the claim is made
- include a brief description of the work performed by the employees to be covered by the union-raised claim
- briefly set out the information that the claimant relies on in support of the elements required for an arguable pay equity claim under section 13F;
- if it is a multi-employer claim it will include a notice of your obligations under section 13K to enter a multi-employer pay equity process agreement with the other employers with whom the claim is raised
- the name/s of each employer/s with whom the claim has been raised
- if it is a multi-employer claim it will include a brief explanation of how the work performed by the employees covered by the claim is the same or substantially similar.
The claim will not include:
- The name of any individual NZEI Te Riu Roa members
If the claim has been raised with multiple employers, they will receive a list of the other employers covered by the claim. Under section 13K of the Act, employers are required to contact the other employers and enter a single multi-employer pay equity process agreement for the purposes of deciding whether a claim is arguable and for the purpose of the pay equity bargaining process.
Employers may opt out of the multi-employer process only for genuine reasons based on reasonable grounds, however, the employer must still progress a pay equity claim.
The pay equity process agreement must set out:
- Who will represent the employers (if it is a multi-employer claim)
- How decisions relating to the claim will be made
Requirements under the legislation
|Step 1 - Receiving the claim||An employer who receive a pay equity claim must:
|Step 2 - agreeing the claim is arguable||
Unless they extend this timeframe with a written notice to NZEI Te Riu Roa. The maximum extension on the time limit is an additional 80 working days.
|Step 3 - giving notice to affected employees||
This can be extended under reasonable grounds by an extra 25 working days with a written notice to NZEI Te Riu Roa.
|Step 4 - notice period for employees||There is a 20 working day notice period for employees covered by the claim, this starts from when the employer provides notice to the employees that a pay equity claim has been raised and is arguable.
Once the 20 working day notice has passed, employer/s must provide NZEI Te Riu Roa with the contact details of all employees covered by the claim (including non-members) as soon as is reasonably practicable.
Section 13ZB - 13ZZE of the Act sets out the Pay Equity Bargaining Process once arguability is agreed.
Frequently Asked Questions
Join up to join in!
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