The Coalition of Chaos has done it again, proving their knack for prioritising the wealthy over the workers. The Pay Equity Amendment Bill, rammed through Parliament under urgency, is a kick in the guts for low-waged women, obliterating decades of progress on pay equity reform in New Zealand.
Workplace Relations Minister Brooke van Velden has dressed this up as “streamlining” the system. But let’s call it what it is: a cynical move to claw back billions from women’s pockets to patch up a budget bleeding from the government’s economic mismanagement.
Threshold Increase: The bill raises the threshold for raising a pay equity claim, requiring that an occupation be at least 70% female-dominated for the past decade to qualify. It also emphasizes proving "genuine" sex-based undervaluation, making it harder to initiate claims.
Impact on Claims: The legislation discontinues all 33 existing unresolved pay equity claims, affecting thousands of workers (e.g., in health, education, and local government). These claims must be restarted under the new, stricter criteria.
Time Restrictions: The bill prevents re-raising a pay equity claim for 10 years after a settlement, compared to the previous shorter review cycles, which critics argue limits opportunities for addressing ongoing inequities.
Comparator Restrictions: Employers now have more control over choosing comparators (roles to compare wages against), and comparisons are limited to male employees at the same or similar employers, reducing flexibility in proving undervaluation.
Retrospective Application: The changes apply retroactively, wiping out existing claims and altering conditions for prior settlements (e.g., making review clauses unenforceable).
Cost Savings: The government, including Prime Minister Christopher Luxon and Workplace Relations Minister Brooke van Velden, has acknowledged that the changes will save "billions" by reducing payouts for public sector claims.
David Seymour himself let the cat out of the bag, crowing that van Velden “saved the taxpayer billions” and rescued the Budget. Translation? The government’s desperate to balance the books after funneling billions in tax breaks to wealthy landlords, leaving women workers to foot the bill.
Seems that BvV worked out that most of the 33 current claims were between 63-68% female dominated. So she raised the requirement of domination to 70%, & made it retrospective, to permanently destroy all existing & future claims.
— Craig (@KiwiCraig74) May 12, 2025
And then lied that it's not removing pay equity. https://t.co/a34kpGDg12
The economic fallout of this betrayal is dire. The Public Service Association (PSA) slams the changes as a “dark day for New Zealand women,” warning that stifling wage growth for female-dominated sectors will further increase poverty and inequality. Their national secretary, Fleur Fitzsimons, argues that fair pay for women isn’t just a moral issue, it’s an economic lifeline.
When low-waged workers, who spend nearly every dollar they earn, are denied pay increases, local economies suffer. Less money in their pockets means less spending in shops, cafes, and services, dragging down growth in communities already reeling from the coalition of chaos’ cuts. The PSA estimates the scrapped claims could have injected tens of billions into the economy over time, boosting demand and creating jobs.
Today, RNZ reported:
'Nothing further from the truth' - pay equity shake-up not cutting pay for women, says PM
The prime minister has accused critics of the government's pay equity shake-up of "scaremongering" and levelling "gendered abuse".
...
Luxon told reporters he could not release the amount that was being saved because the information was "budget sensitive".
When it was pointed out to him the government was able to choose what information was budget sensitive, Luxon reiterated the "impact impact of these costs are budget sensitive".
Labour leader Chris Hipkins nails the hypocrisy: “This is about robbing Paula to pay Paul, stripping Kiwi women of fair pay to clean up Nicola Willis’ economic mess.” The Greens echo this, calling the bill a “disgrace” that entrenches gender pay gaps. By choking off pay equity, the coalition is stifling a proven economic driver. Instead, they’re betting on trickle-down nonsense that has proven itself a complete failure over many decades. Gifting landlords billions while low-waged women face poverty and hardship isn’t good economic management. It’s a sure way to increase disparities and lower New Zealanders living standards.
This isn’t reform; it’s regression. The coalition’s obsession with austerity for the many and windfalls for the few is tanking our economy and betraying half the workforce. Women deserve better than being sacrificial lambs for a budget bloated by landlord greed. It’s time to fight back. Unions are mobilising, and the 2026 election looms. Let’s make this one-term government a distant memory and vote the coalition of chaos out next year.
