Organisations Combine To Implore Government To MindTheGap To Help Reduce Poverty

A group of forty New Zealand unions, charities and community groups have joined together to implore Government to change legislation to address New Zealand’s gender and ethnic pay gaps immediately and help reduce poverty. 

In an open letter to Government today in major New Zealand newspapers, the letter to Prime Minister as Minister for Child Poverty Reduction Jacinda Ardern, Associate Minister for Workplace Relations Priyanca Radhakrishnan and Minister for Women Jan Tinetti asks the Government to make pay gap reporting mandatory for businesses with more than 50 employees.

Led by MindTheGapNZ, the letter says with the soaring cost of living taking its toll on families across Aotearoa, made worse by winter heating bills, now more than ever we must act to close our gender and ethnic pay gaps.

“Many women and people in our Māori, Pasifika and other ethnic communities earn much less than they would if they were a Pākehā man. That’s not fair. It’s not the Kiwi way. The playing field is tilted against too many,” the letter says.

“In these tough times, every dollar counts. We can’t afford to wait any longer.

“Requiring big employers to report pay gaps can help reduce child poverty and help end discrimination that impacts on the aspirations of Māori, of Pasifika; of other ethnic groups.”

MindtheGap campaign co-founders Jo Cribb and Dellwyn Stuart say while they are pleased the government has agreed to address pay gaps as a priority, it needs to be done so urgently.

“Overseas experience shows that making it mandatory for businesses to report their pay gap has resulted in, not only closing the gap but quickly having a positive impact on workers' pay packets, once the legislation is announced,” says Dr Cribb.

Analysis of public pay gap reporting in seven countries shows mandatory reporting can reduce gender pay gaps by between 20-40 percent. Applied to a New Zealand context, it means a woman earning the current median wage in New Zealand ($26.37) could receive $12.80 - $35.77 a week more.

Dr Cribb says while an increase of up to $35 may not sound like a lot, it could make a difference to the lives of low paid employees.

“$35 dollars a week will help with this winter’s heating bills or buy twelve litres of petrol. We literally can’t afford to waste any more time addressing this issue.”

MindTheGap Allied Member, The New Zealand Council of Trade Unions said introducing pay gap reporting will help empower the most vulnerable communities in Aotearoa.

“As a country, we can help improve the wellbeing of our working people with simple steps such as pay gap reporting. We look forward to working with the Government to see this become a reality,” said CTU Secretary Melissa Ansell-Bridges.

CEO of Community Housing Aotearoa-Ngā Wharerau o Aotearoa Vic Crockford says they are working with huge numbers of people who are unable to afford rent, let alone aspire to home ownership, despite earning a double income households.

“The pay gap only makes this worse. We know that what gets measured, gets managed and we should be treating pay gaps like we treat health and safety – as a business-critical issue that impacts the wellbeing of our society.”

In its #NotAnotherWinter campaign, MindTheGap is asking New Zealanders to sign a petition to call for urgent action on the issue.

There is already widespread public support for pay gap reporting. A poll shows that more than half of New Zealanders (58%) believe that large businesses should be required to share any pay gaps regularly and publicly. (women 62%, men 54%). A similar amount said they were concerned about large pay gaps and 68% agreed large businesses should be required to make pay gaps known to job candidates.

So far 55 out of an estimated 5000 companies with more than 50 employees are reporting their gender pay gaps on The MindTheGap campaign’s Public Pay Gap Registry. Seven of those are also reporting their Māori pay gap and their Pasifika pay gap.

But MindtheGap wants the Government to work with businesses to agree on a standardised approach to reporting and introduce pay gap reporting legislation with urgency. Mandatory reporting is already in place for the New Zealand public service.

Signatories to the open letter: Human Rights Commission , E tū, New Zealand Council of Trade Unions, FIRST Union, Pacifica Inc, Auckland Action Against Poverty, Wellington City mission, Auckland City Mission, Community Housing, NZ Council of Christian Social Services, E Tipu E Rea Whānau, Strategic Pay, Working Women's Resource Centre, National Council of Women, Graduate Women New Zealand, BPW, Inclusive Aotearoa Collective, Belong Aotearoa, New Zealand Nurses Organisation, YWCA, Gendertick, Global Women, Rural Women, Pacific Women's Watch, CAANZ, Sports NZ, Pride Pledge, Auckland Women’s centre,Good Shepherd NZ , Diversity Works, Retirement Commission, Birthright, Hui e, Renters United, Action Station, Monte Cecilia, The Period Place, St Matthews and Socialink

© Scoop Media