57793 (2024). Francisco Hernandez to the Minister for the Public Service
Written Question
Published date: 23 Sep 2024
57793 (2024). Francisco Hernandez to the Minister for the Public Service: Does the quote from the Workforce Policy Statement that "any increases or changes in terms and conditions should not lead labour market movements and trends," include pay equity settlements?
Hon Nicola Willis: A pay equity settlement is classified as a pay correction, rather than a negotiated increase that is associated with collective agreement bargaining. The Equal Pay Act provides for a process whereby a pay equity settlement is informed by the wider labour market through the comparator exercise.
As stated in my release of 2 May 2024 when I announced that the Government has refreshed its approach to pay equity claims, The Government remains committed to pay equity and meeting its obligations under the Equal Pay Act 1972. [Government recommits to equal pay | Beehive.govt.nz]
The Government’s Workforce Policy Statement also reinforces the expectation inherent in pay equity and equal pay reviews that agencies will ‘establish equitable employment and remuneration practices and take steps to close unjustified pay gaps’.