Changes in pay equity law may backfire for already underpaid wāhine Māori

The controversial Pay Equity Amendment Bill proposing multiple changes to the Equal Pay Act 1972 could backfire for wāhine Māori as concerns have been raised about the law changes potentially affecting the pay gap.

Some experts fear that the Bill could increase gender pay gap and make pay equity claims more difficult for Māori women as it focuses on raising the threshold for what is considered ‘work predominantly performed by female employees.’

Pay equity claims are allegations put forward by workers to their employer claiming that they are underpaid compared to other.

The current pay gap between wāhine Māori and tāne Māori is 4.7% on average, and

wāhine Māori earn around 22% less than Pākehā men.

When the Pay Equity Amendment Bill was passed through Parliament on May 6, 33 pay equity claims were actively being investigated, but they now must be resubmitted to meet new criteria.

To previously file a pay equity claim, workers had to prove that 60 per cent of the work done was predominantly performed by women. That threshold has been raised to 70 per cent.

In 2018, NZEI Te Riu Roa were the first union to file a pay equity claim on behalf of a Māori workforce which proved that Kaiārahi i te reo (Māori language and tikanga advisors) was a female dominate job and was under paid.

Matua Takawaenga for NZEI Te Riu Roa and co-convener for Te Rūnanga o ngā Kaimahi Māori o Aotearoa Laures Park says that the work to improve pay equity for Māori is being undone and the Kaiārahi i te reo claim demonstrates the inequity.

“Yes it has, it is being [un]done, but it actually wasn’t like when we did the Kaiārahi i te reo [claim], we were doing it purely because they were in an industry that was very, very low paid.

“The fact that they happen to be Māori, and you had to be Māori to have that level of reo Māori to be able to do the job, also added to that whole pay gap discussion,” she says.

Hāpai Te Hauora reports that wāhine Māori are overrepresented in low paying jobs and are undervalued in essential positions.

AUT Professor of Industrial Relations Katherine Ravenswood says that wāhine Māori must not just deal with societal gender norms but racial views too.

“On top of the gender discrimination that will say women's work is worthless (caring for people seen as women's stuff, it's not a skill or experience,) the kind of racist norms that still underpin our society that will say Māori maybe aren't as good at education or something or they're better in different roles.

“They've got more than just gender to deal with, they've got the colonial racist discrimination [as well,]” says Ravenswood.

In October 2024 it was reported that Māori and Pasifika women were essentially working for ‘free’ for the rest of that year because of large, gender pay gap.

Ravenswood says that conversations around the Bill introduce the chance to go beyond gender inequality in jobs.

“[The Equal Pay Act] only looks at sex-based discrimination, which we interpret as women, maybe gender now. And it's such a missed opportunity to actually say race or sex or gender-based discrimination. Because why are we still looking at women?”

Park’s says that previous claims have given wāhine Māori the chance to purchase necessities that they have never been able to afford before.

“I'm going to buy maybe some funeral insurance. Oh. And I thought, wow. And she said, because I've always wanted to do that for me and my mum, but I've never been able to afford it. Now I can.”