A historic pay equity settlement could lead to hefty pay rises for about 55,000 low-paid, mainly female workers as part of a deal between unions and the Government.
Cabinet will discuss the settlement later on Tuesday, with Prime Minister Bill English saying ministers do not want to leave the issue for the courts to decide.
NZME reported the deal would lead to significant pay increases from July for workers in aged residential care, home support, and disability services, all state-funded service sectors with low pay rates and predominantly female employees.
Kristine Bartlett, the aged care worker whose court case kickstarted the pay equity negotiations, would have her salary increase from about $16 an hour to about $23 an hour.
This is great news. And while progress might be slower than if it was gained by a court order, its more certain. Government agencies introducing equal pay should also put more pressure on the private sector to provide it and help drag wages up across the board. And if not, the changes negotiated to the Equal Pay and Employment Relations Acts will allow women to fight for equality and win.