Te Kāhui Tika Tangata, the Human Rights Commission today handed Government the findings and recommendations of a ground-breaking national inquiry into the Pacific Pay Gap.

Led by the Equal Employment Opportunities (EEO) Commissioner Saunoamaali’i Karanina Sumeo, the inquiry was able to collect evidence to better understand why the Pacific Pay Gap exists and what needs to be done to close the gap.

Titled “Voices of Pacific people: eliminating pay gaps”, the report sheds light on the lived experiences of Pacific workers while also exploring what government, employers and unions need to do to urgently address pay inequity.

“These very personal stories and experiences of Pacific workers are deeply heart-breaking.”

“For the first time, many of them have opened up or revisited old wounds. But in the process, they have also felt seen, reassured, and validated about their tragic experiences of workplace discrimination and racism,” said Sumeo.

Pacific workers also shared aspirations for themselves and their families and solutions to the Pacific Pay Gap.

“They care about their peers and employers and contributed hugely to the culture of their workplaces. But they equally feel undervalued and experience social, economic, and cultural inequality,” said Lisa Meto Fox, the Pacific Pay Gap Inquiry Advocacy Manager.

“Pacific workers told us they want pay transparency, the minimum wage lifted to the living wage, visible pay scales, mentorship, incentives and progression pathways,” added Fox.

The inquiry heard that many continue to be prejudiced because of their Pacific names and that often their qualifications and work experience are undervalued in the recruitment process.

“Research through our inquiry provides evidence that racism, unconscious bias and workplace discriminatory practices are some of the reasons why Pacific workers are being held back from realising their full potential in the workplace,” said Sumeo.

“We are not living up to the promises of equality, dignity and everyone having a fair go. And as a result, we continue to fail Pacific children, workers, families, and entire communities.”

Employers told the inquiry that there were both systemic and personal drivers for the Pacific Pay Gap. Many felt collective bargaining could make a difference in reducing pay gaps, suggesting Pacific workers could take collective action where possible.

The report lays out the challenge, framework, and recommendations to close the Pacific Pay Gap in the next 20 years.

“While we acknowledge that sectors, businesses, and communities are starting from different baselines — intentional targets and milestones matter. I'm hopeful we can close the Pacific Pay Gap closed by 2042,” said Sumeo.

“The recommendations to urgently introduce legislation requiring pay transparency, lifting the minimum wage to the living wage, and expanding the prohibited grounds in the Equal Pay Act to also include ethnicity and disability will transform the lives of all workers across Aotearoa New Zealand.

“Our inquiry into the Pacific Pay Gap has exposed legislative and policy gaps, business leadership invisibility and systemic indifference to pay inequity based on ethnicity that has perpetuated inequality, unfairness, discrimination, and hardship in the lives of Pacific peoples,” explained Sumeo.

“As EEO Commissioner, I’m confident the protection and realisation of basic human rights for Pacific peoples will lead to overall benefits for all New Zealanders.”

“These recommendations in our report will go a long way in helping close the pay gaps faced by Pacific, Māori, women, disabled and other ethnic minority workers. A rising tide will lift all boats,” added Fox.

Key findings at a glance

• Prejudice against Pacific names and undervaluing of qualifications and work experience in the recruitment process
• Lack of pay transparency
• Pacific men being promoted over Pacific women in organisations
• Experiences of interpersonal and workplace discrimination, including racism
• Feeling worthy of more pay and development opportunities but not knowing how to talk to managers about it and feeling anxious about negative repercussions
• Being paid little more than minimum wage despite years of accumulated skill and experience in the same job
• Remaining a contractor, casual worker, or seasonal worker for the same employer for years without an offer of secure employment
• Limited awareness of rights and obligations between employees/contractors and employers on issues of pay, leave and health and safety
• Uneven access to training opportunities
• Failure to recognise and remunerate talent, cultural skills, knowledge, and experience

Top recommendations to Government

1. Urgently introduce legislation requiring pay transparency. The pay transparency legislation should aim to eliminate Pacific, Māori and ethnic pay gaps as a key principle.
2. Raise the minimum wage to the same level as the living wage to ensure that increases over time remain adequate to meet people’s living costs. Ensure that, as the living wage increases, the minimum wage increases at the same rate.
3. Amend the Equal Pay Act 1972 to expand prohibited grounds to also include ethnicity and disability as first priority. Thereafter gender identity and age to be prioritised for inclusion. The Equal Pay Act currently provides for the removal of pay discrimination between men and women only.
4. Establish a national pay equity taskforce to ensure Pacific, Māori and ethnic pay gaps are closed by 2042.
5. Implement the recommendations of the Tripartite Working Group on Better Protections for Contractors. This should include stronger legal protections for vulnerable workers who are on independent contracts and clearer legal definitions for employees and contractors.
6. End racial and sexual discrimination and bullying in the workplace and better support survivors by ratifying the Violence and Harassment Convention 190 (International Labour Organization C190).

Notes for Editors

The Pacific Pay Gap Inquiry was conducted between August 2021 and July 2022 through a broad and diverse combination of approaches, like surveys, submissions, face to face workshops, webinars, and Talanoa.

Our Inquiry engaged approximately 1,200 individuals, including Pacific workers, employers, and union members from across the New Zealand economy.

We received 738 responses from workers and 16 responses from employers via our surveys. Additionally, we had a total of 425 oral contributions from workers, 24 employers, four unions and one peak body.

As part of the Inquiry, a literature review, empirical analysis of income data and research on the national prevalence of bullying, harassment and sexual harassment in the workplace were also conducted.

While the Inquiry focused on three key industries where Pacific workers are concentrated: manufacturing, construction, and health, we received an overwhelming response from workers in a range of other industries like education, finance, retail, social work, and public service.

Our findings, therefore, reflect the wide range of employment experiences shared with us.

The full report is available on our website here.

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