Former MPs Slam Pay Equity Changes as Abuse of Power

A group of female former Members of Parliament in New Zealand has condemned recent changes to pay equity laws as a “flagrant and significant abuse of power.” The amendments to the Equal Pay Amendment Act, enacted in May 2025, have drawn sharp criticism for dismantling live pay equity claims and tightening the criteria for future claims, which has sparked outrage among unions and advocates for low-paid women.

The committee, known as the People’s Select Committee on Pay Equity, was led by former National Party MP Professor Marilyn Waring and included several other notable figures from across the political spectrum. Over three months, the committee conducted hearings and reviewed 1,390 submissions regarding the law changes. Their findings have painted a troubling picture of the amendments’ implications for gender equity in the workplace.

Findings Highlight Legal Violations

According to an executive summary of the committee’s report, the investigation concluded that the changes breached various existing laws, including the New Zealand Bill of Rights, the Human Rights Act, and international conventions such as the UN Convention on the Elimination of All Forms of Discrimination Against Women. The committee expressed particular concern over the retrospective cancellation of existing rights and remedies, which they deemed a serious violation of the rule of law.

The committee also noted significant financial implications, stating that the changes enabled the government to save billions of dollars at the expense of low-paid women. They found that the funds supposedly saved were simply reallocated to other government expenditures, contradicting claims made by the finance minister.

The report highlights a lack of evidence supporting the rationale for dismantling what was characterized as “the world’s leading pay equity regime.” Workplace Minister Brooke van Velden had argued that adhering to previous laws would have resulted in costs that were “far, far” greater than previously indicated. The committee’s findings challenge this assertion, underscoring that no actual budget savings were realized through the law changes.

Concerns Over Comparators in Pay Equity Claims

Another contentious issue raised in the report pertains to the concept of “comparators.” The government’s new framework proposed a “hierarchy of comparators,” limiting comparison to jobs within the same industry or occupation. This shift was criticized by the committee, which argued that it oversimplified a complex process.

The committee noted, “no minister, or briefing bureaucrat, and no speaker in the parliamentary debate, demonstrated any knowledge of how comparators and factor scoring work.” They emphasized that assessing pay equity is a sophisticated process requiring collaboration between workers and employers.

As the full report is set to be released at 10:00 AM on Tuesday, it is expected to provide further insights into the implications of the changes and the committee’s recommendations for restoring equitable pay practices in New Zealand. The fallout from these findings may prompt renewed discussions on pay equity and the government’s approach to gender-related economic issues.