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The Government’s rollback of pay equity protections

Thursday, May 8, 2025

Diversity Works NZ official statement on the government's rollback of pay equity protectionsDiversity Works New Zealand Chief Executive Maretha Smit has released the following statement in response to the Pay Equity Amendment Bill that was passed in Parliament under urgency last night.

Diversity Works New Zealand is deeply concerned by the Government’s decision to overhaul the pay equity framework and extinguish 33 active claims—many of which were well advanced—through an expedited legislative process.

These are not abstract matters of policy. The affected claims represent real women in real professions—nurses, care workers, librarians, social workers—who have spent years building cases grounded in legal precedent, sector expertise, and good-faith negotiation. These are sectors historically undervalued precisely because they are dominated by women.

To characterise this as “reform” is misleading. It is a regressive move that makes it significantly harder for women—particularly those in low-paid, female-majority roles—to access the fairness they have long been denied.

We do not agree that there is any notable system failure in the existing legislation. We view this rollback as a fiscal decision to reduce government obligations. In the process, the cost burden is shifted onto the very people who sustain our health system, early childhood centres, aged care facilities, and community infrastructure. That choice has ethical, economic, and social implications.

Pay equity is a corrective tool - a way of addressing the historic undervaluation embedded in our labour market. Fair pay for women in undervalued roles delivers benefits far beyond the individual. It uplifts whānau, strengthens communities, and reduces long-term strain on public services.

As the national body for workplace inclusion, we stand firm in our commitment to fairness and dignity for all workers. Pay equity is a foundational matter of justice, and one that affects the health of our entire society.


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