Latest news with #payEquity
Telegraph
4 days ago
- Business
- Telegraph
Colleagues could know your salary under Labour reforms
Employers could be forced to tell workers how much their colleagues earn under Labour reforms to boost salary transparency. Ministers are considering a raft of radical changes, including ordering firms to share salary levels, pay structures and criteria for progression with their staff. The move could also mean that employers have to inform interview candidates in advance how much a job will pay, and avoid asking them about their previous salaries. The Fawcett Society welcomed the move, but said more needed to be done, while headhunters Robert Walters UK&I said it could cause internal problems for employers. The review is being carried out by the Office for Equality and Opportunity, led by Bridget Phillipson, the Women and Equalities Minister, under plans to tackle pay discrimination and workplace harassment. The reforms include giving workers information on their pay level, and how it compares with colleagues in the same role or performing work of equal value. Firms would also be forced to provide them with information on pay, company salary structures and criteria outlining how they can progress. Job adverts could also have to outline a specific salary or range, and interview candidates would be informed in advance how much they will earn, with restrictions on asking them about their previous levels of pay. Any changes could be enforced by a new Equal Pay Regulatory and Enforcement Unit, established with the involvement of trade unions. The Government is already planning major changes to workers' rights, spearheaded by Angela Rayner, the Deputy Prime Minister. The upcoming Employment Rights Bill will make it easier for staff to request flexible working, and hand them the right to take employers to tribunal for unfair dismissal from day one, which experts warned would flood courts with spurious claims. It comes after a survey revealed that companies are planning more lay-offs after the Government raised National Insurance contributions from 13.8pc to 15pc. Accountants S&W found that a third of businesses were planning to cut staff, and 20pc already had. Penny East, chief executive of the Fawcett Society, welcomed the potential new measures, and said the Government had to do more to close the gender pay gap. She said: 'Fawcett and our members have long called for employers to stop asking questions about salary history, and for employees to have a 'right to know' what those doing equivalent work in the same company are being paid. Evidence shows us these steps will make a significant difference to the gender pay gap. 'However, there is more to be done. We look forward to a time when all economic and societal unfairness is tackled.' Liz Emerson, of the Intergenerational Foundation think tank, said: 'Too many young people are underpaid for doing the same job alongside older colleagues. You just have to look at national minimum wage rates for the under-22s to see how differently generations are treated in the workplace. 'Pay transparency can shine a light on intergenerational unfairness in the workplace.' However, Chris Eldridge, chief executive of headhunters Robert Walters UK&I, said disclosing salaries on job adverts could cause problems for employers. He said: 'Compensation for a role can vary considerably, influenced by factors such as talent competition, counteroffers and current rates of inflation. However, if current employees perceive discrepancies between advertised salaries for similar roles and their own pay, it could lead to significant internal dissatisfaction. 'This potential for internal conflict is a key reason why many employers currently avoid directly listing salaries on job listings.' A government spokesman said: 'This Government is pro-business and many businesses already go well beyond the requirements of the law in order to support pay equality. 'We are seeking to build the evidence base before deciding whether any changes in relation to pay transparency are necessary. 'By collecting evidence on how best to tackle pay disparities, we will be able to make sure that we maximise the benefits to both workers and employers.'
Yahoo
4 days ago
- Business
- Yahoo
Employers could be forced to tell colleagues what you earn under Labour reforms
Employers could be forced to tell workers how much their colleagues earn under Labour reforms to boost salary transparency. Ministers are considering a raft of radical changes, including ordering firms to share salary levels, pay structures and criteria for progression with their staff. The move could also mean that employers have to inform interview candidates in advance how much a job will pay and avoid asking them about their previous salaries. The Fawcett Society welcomed the move, but said more needed to be done, while headhunters Robert Walters UK&I said it could cause internal problems for employers. The review is being carried out by the Office for Equality and Opportunity, led by Women and Equalities minister, Bridget Phillipson, under plans to tackle pay discrimination and workplace harassment. The reforms include giving workers information on their pay level and how it compares with colleagues in the same role or performing work of equal value. Firms would also be forced to provide them with information on pay, company salary structures and criteria outlining how they can progress. Job adverts could also have to outline a specific salary or range, and interview candidates would be informed in advance how much they will earn, with restrictions on asking them about their previous levels of pay. Any changes could be enforced by a new Equal Pay Regulatory and Enforcement Unit, established with the involvement of trade unions. The Government is already planning major changes to workers' rights, spearheaded by deputy prime minister, Angela Rayner. The upcoming Employment Rights Bill will make it easier for staff to request flexible working and hand them the right to take employers to tribunal for unfair dismissal from day one, which experts warned would flood courts with spurious claims. It comes after a survey revealed that companies are planning more layoffs after the Government hiked National Insurance contributions from 13.8pc to 15pc. Accountants S&W found that a third of businesses were planning to cut staff, and 20pc already had. Penny East, chief executive of the Fawcett Society, welcomed the potential new measures, and said the Government had to do more to close the gender pay gap. She said: 'Fawcett and our members have long called for employers to stop asking questions about salary history, and for employees to have a 'right to know' what those doing equivalent work in the same company are being paid. Evidence shows us these steps will make a significant difference to the gender pay gap. 'However, there is more to be done. We look forward to a time when all economic and societal unfairness is tackled.' Liz Emerson, of the Intergenerational Foundation think tank, said: 'Too many young people are underpaid for doing the same job alongside older colleagues. You just have to look at national minimum wage rates for the under-22s to see how differently generations are treated in the workplace. 'Pay transparency can shine a light on intergenerational unfairness in the workplace.' However, Chris Eldridge, chief executive of headhunters Robert Walters UK&I, said disclosing salaries on job adverts could cause problems for employers. He said: 'Compensation for a role can vary considerably, influenced by factors such as talent competition, counteroffers and current rates of inflation. However, if current employees perceive discrepancies between advertised salaries for similar roles and their own pay, it could lead to significant internal dissatisfaction. 'This potential for internal conflict is a key reason why many employers currently avoid directly listing salaries on job listings.' A government spokesman said: 'This Government is pro-business and many businesses already go well beyond the requirements of the law in order to support pay equality. 'We are seeking to build the evidence base before deciding whether any changes in relation to pay transparency are necessary. 'By collecting evidence on how best to tackle pay disparities, we will be able to make sure that we maximise the benefits to both workers and employers.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
RNZ News
6 days ago
- Business
- RNZ News
Pay parity policy shift leaves ECE graduates facing uncertain future
Photo: 123RF Recent migrant graduates with a master's degree or graduate diploma in early childhood education in New Zealand have expressed dismay over the government's sudden change to pay equity laws . The legislation passed in May made it harder to make a case for workers in professions dominated by women to have their pay increased in line with equivalent jobs done by men. The education sector had been hit hard by the change. From 1 July, newly qualified teachers could be placed on the lowest salary step regardless of prior qualifications and experience. The government also introduced a two-year moratorium to prevent services moving from a lower-paid to higher-paid tier of the graduated parity system. For migrant educators, the policy shift felt like a door had been abruptly slammed shut on their hopes of immigrating to New Zealand, as it became increasingly difficult to secure roles that meet the wage threshold required for residency. According to Immigration New Zealand, registered early childhood (pre-primary school) teachers are listed on the Green List Tier 2 in-demand occupation . Eligible teachers can apply for a Work to Residence visa after completing 24 months of employment with an accredited employer. However, they must earn at least the median wage, currently set at $31.61 per hour for early childhood educators, to qualify. Photo: RNZ / Marika Khabazi Lily Liu, a former local government employee in China, graduated in May from Auckland's ICL Graduate Business School with a graduate diploma in early childhood education. Liu's goal was to secure a full-time position at an early childhood center that paid the median wage - but finding such a role had been difficult. "I've applied for nearly 100 jobs since finishing my internship at the end of March," Liu said. "But I haven't heard back - not even a rejection letter." After realizing how tight the job market was, Liu expanded her search to early childhood centers outside Auckland. "Two small centers said they were interested [in hiring me]," she said. "But they could only offer entry-level salaries for new graduates." Liu said the policy change had impacted her chances of securing residency. "After the new policy was announced, I received a response from a center in Hastings saying I was not the most suitable candidate for the role," she said. "I think it was because of the salary," she said. "I asked for the median wage, but they could only offer me the Stage 3 rate [on the parity scale], which is around $29.78 per hour." She believed the change could make the early childhood education pathway less attractive to migrant teachers. "If I hadn't already come here, I would have considered going to another country," she said. Photo: RNZ / Nate McKinnon Rose Zhang, who is currently studying early childhood education at ICL Graduate Business School, shared the same concerns. With decades of experience as an English teacher at several well-known language schools in China and a master's degree in education, Zhang had hoped her background would be recognized. However, her prior teaching experience and advanced qualifications might not be considered when ECE centers determined the starting salary step for newly certified teachers or those new to the early childhood sector from 1 July. Set to graduate this July, Zhang was not optimistic about her prospects. "I just finished my internship recently," she said. "I asked the manager at the early childhood center where I interned, and the manager said ECE centers are no longer willing to offer newly graduated teachers the median wage." "Our teacher also told us in class that it's very hard to reach the median wage within the next two years, especially for students hoping to apply for residency through the Green List immigration pathway," Zhang said. "The teacher even said we could consider going to Australia if opportunities here remain limited," she said. Zhang said the lower salary rates could dampen teachers' enthusiasm for the work. "Even though we often say that teachers nurture the next generation with great love, we still have to make a living," she said. "In the long run, lower salaries will definitely affect teachers' motivation - and that will inevitably impact the energy and care they're able to give children." Te Rito Maioha Early Childhood New Zealand, which represents hundreds of early childhood education center owners and managers, said the country had a system that valued both experience and qualifications through an 11-step salary scale for ECE teachers. Recognized service acknowledged work experience within the ECE sector, with each year of service counting as one step. For those transitioning from roles outside the ECE sector, previous relevant experience allowed related experience to count as half a step, up to a maximum of two steps. A teacher's qualifications also played a role in determining their starting point on the scale. However, employers would have full discretion to determine the starting salary step for newly certificated teachers or those new to New Zealand's early childhood education sector from 1 July. Recognition of previous ECE experience, relevant work history or higher qualifications would no longer be required and would be left entirely to the employer's judgment. Kathy Wolfe, chief executive of Te Rito Maioha Early Childhood New Zealand Photo: Supplied Kathy Wolfe, chief executive of Te Rito Maioha Early Childhood New Zealand, said early childhood education centers across the country had mixed feelings about the changes. While some employers might still choose to value teachers' prior experience and qualifications and pay accordingly, Wolfe said they could face financial constraints in doing so. "Because of the underfunding from the government, we didn't get a lot in the budget," she said. "Centres are struggling [and] the only place they've got to go is increase fees, which will then increase costs for parents." Wolfe said some centers might opt to reduce salaries and hire teachers at lower steps on the pay scale, a move that could worsen New Zealand's existing teacher shortage. "Teachers will go to employers who continue to recognize and pay for their experience and qualifications," she said. "Those who choose to pay less - not because they want to, but because they have to - will struggle to employ teachers, which again will result in closing." Fiona He, director of Auckland early childhood education center TuiTui Educare Photo: supplied Fiona He, director of Auckland early childhood education centre TuiTui Educare, said the change reflected a philosophical shift from a standardized, qualification-based pay model to a more market-driven, flexible approach that her center welcomed. While the change provided only minimal financial relief for ECE providers and was not expected to result in significant savings, it did offer greater flexibility in hiring, she said. She said that unrelated higher qualifications would likely no longer be given the same weight as they had in the past under the new policy. "We've had teachers with overseas master's degrees in unrelated fields who lacked understanding of New Zealand's culture, local communities and the ECE curriculum, Te Whāriki," she said. "Despite limited ECE experience and underwhelming performance, they started on Step 5 [of the parity salary scale], which is $32.59 per hour." "Meanwhile, local graduates with a Bachelor of Teaching in ECE who are native speakers and well-versed in New Zealand's culture and curriculum often begin on Step 1, at $27.58," she added. "That disparity doesn't seem fair or reflective of their readiness to teach in our context." Photo: RNZ / Marika Khabazi While the changes offered some financial relief and greater autonomy in staffing decisions, she said they could come at a cost - potentially increasing staff turnover and leading to a decline in educational quality if formal qualifications were de-emphasized. For teachers, the changes also risked lowering starting salaries and discouraging investment in formal education, which could ultimately lead to a loss of talent across the sector, she said. Wolfe said New Zealand's early childhood education sector continued to face a teacher shortage, particularly in rural areas and smaller towns. While new migrant ECE teachers might need to work for several years before becoming eligible to apply for residency, opportunities in the sector still existed, she said. However, she said sustained government funding was essential to maintaining the quality of early childhood education in New Zealand. "It's not just about salaries," Wolfe said. "It's also about the funding that comes into ECE, and the funding into ECE at the moment is very inadequate. "We hope to keep attracting people into teaching [and] early childhood education."
RNZ News
04-06-2025
- Business
- RNZ News
Midday Report Essentials for Wednesday 4 June 2025
economy infrastructure about 1 hour ago In today's episode, a new poll shows more New Zealanders oppose rather than favour the government's pay equity shakeup, demolition crews are racing against the tide to remove the burnt-out wreck of an historic ship on the Paihia waterfront in Northland, the government is investing over $15 million to upgrade infrastructure and enhance conservation in Milford Sound, and a strong wintry weather blast is starting to be felt in parts of the country with flights in and out of Christchurch and Nelson being cancelled.
RNZ News
26-05-2025
- Politics
- RNZ News
Group of former MPs not letting pay equity overhaul go quietly
politics about 1 hour ago The government may be keen to move on from the pay equity overhaul and the uproar it caused - But a cross-party group of former MPs is not letting it go quietly. Dame Marilyn Waring is leading the group which will hold its own unofficial 'people's select committee' process. The former National MP said women have become collateral damage in pursuit of balancing the budget. Political reporter Russell Palmer has the details. Tags: To embed this content on your own webpage, cut and paste the following: See terms of use.
