KEY POINTS:
The Government could be addressing its first pay-equity claims by the middle of next year, with the Cabinet agreeing terms of reference for pay and employment equity reviews.
The public service, health and education sectors will all be subject to a review designed to ensure occupations that are dominated by women see those workers earn fair pay and have equal employment opportunities.
Despite equal pay law being on the books since 1972, in March 2005 women's average hourly earnings were 86.4 per cent of men's.
"The aim is to have a process and remedy which is sustainable, so that in a decade we could say we don't have a pay and employment equity gap in New Zealand," Labour Minister Ruth Dyson said yesterday.
"Whether that's delivered or not is yet to be seen. It's a new process."
Before a pay equity or equal employment opportunity claim is lodged, a template which tests each occupation's job size and remuneration against a comparable occupation must be completed.
A review will then be carried out before a claim is lodged.
Depending on the review's findings, workers such as teachers, secretaries, librarians, dental therapists and nurses may find their wages boosted.
"I don't imagine the pay gap is going to be huge in a number of occupations," Ms Dyson said. "I do think the employment equity issues are ones we have to get our heads around better and which employers will have to work hard to deliver on.
"You can fix a pay gap with a one-off wage increase, but that doesn't mean it's going to be sustained. If you change the workplace so that female staff are better valued for their contribution, then it will be sustainable."
Ms Dyson expected to see some definite claims on the table by the middle or third quarter of next year.
She said there had been "huge understanding and support" from the relevant government departments and agencies, from the State Services Commission, District Health Boards, and school trustees.
Council of Trade Unions vice-president Helen Kelly said with pay equity claims resolved women would look at the state as a preferred employer, boosting the need for private sector to move in step.
