• Tony Teesdale

Equal Pay & Pay Equity – What you need to know

The terms Pay Equity and Equal Pay are often used interchangeably, but they are different concepts. 

Equal pay requires that male and female employees be paid the same remuneration for the same work.  On the other hand, pay equity is about realigning the rates of pay for work currently or historically performed by women with low bargaining power.

The Equal Pay Amendment Bill aims to make it easier to raise pay equity claims.

Process

A claim can be made at any time.  The employer must then decide whether the claim is “arguable”.  A claim is arguable if it relates to work that is predominantly performed by female employees and the work is, or has been historically, undervalued.  The employer must give a decision within 65 days or the claim is deemed to be arguable. 

If it is arguable, the parties must enter into pay equity bargaining to reach an enduring settlement.

Factors to consider

The process will involve an assessment of the work in question against comparable work, which may include:

  • Work performed by males that is the same or substantially similar.
  • Work performed by males that is different but involves the same or substantially similar skills, experience etc.
  • Any other comparators the parties consider useful. 

Pay Equity bargaining is distinct from collective bargaining

In the case of pay equity bargaining:

  • The process can proceed even if a collective agreement is in force. 
  • Strike action is unlawful during bargaining.
  • Failure to settle a claim is not a justifiable reason for refusing to settle a collective agreement. 

There are some similarities. The parties must provide each other with information that is necessary to support a claim, and mediation is available to assist the parties reach resolution. The Employment Relations Authority may also provide Facilitation – a process where the Authority may make recommendations to the parties – but the threshold to gain access to Facilitation is much lower for pay equity bargaining. 

Backdating

This is contentious.  While in most cases back dating will be to the date the claim was first made, the maximum the Authority may award is six years.  

Comment

While the cause is just, this subject will dominate many organisations for some period over the next few years. In the public sector the Aged Care workers settlement got the ball rolling. This has already extended to mental health workers and education support staff, with claims pending for social workers, teachers, nurses and midwives, and admin and clerical staff. The impact will extend to the private sector, but ability to pay will be a moderating factor.

Either way, we will all have to adjust to new pay relativities in the workplace.

Tony Teesdale, Managing Director,

Teesdale Associates Limited

021 920 323 www.teesdaleassociates.com


Issue 93 November 2018