Pay Equity, An Investment in national prosperity.

Pay equity is an investment in the economic prosperity of Aotearoa, not a cost.

OECD analysis confirms that lower income consumers, where wāhine are disproportionately employed, spend more of their income then most others.

Increasing incomes for these demographics sees their spend have a multiplied impact and could very much be the single most beneficial tool available to Aotearoa at this present time in our economic cycle that will lead to economic growth.

However as the recent response from the Trade Unions states: “For many people who work in underpaid, traditionally female-dominated sectors, pay equity settlements are the difference between families being able to afford dental appointments, tamariki going to school camp, or being able to take the car into a mechanic.The proposed changes will reverse decades of progress to correct pay rates for women and people of all genders working jobs that have been undervalued due to sexism.” (https://www.stuff.co.nz/business/360680867/unions-launch-petition-protect-pay-equity)

In a context of economic downturn where the Cost of Living is at the forefront of many homes in Aotearoa the recent passing of the Pay Equity legislation and the extinguishing of existing claims by the Coalition government through urgency raises critical questions for all.

The shifts in the legislation are particularly impactful on whānau who are currently surviving week to week, and who were looking ahead to the increases that would come with the honouring by the government of the Pay Equity agreements already on that table.

Furthermore, given the propensity of lower-income households to consume, increasing their spending power will have a direct impact on their wellbeing and the wellbeing of their whānau, reduce reliance of crown support, improve health and education outcomes, and extend the working life of these kaimahi leading to an increase in both short term and long-term tax revenue.

Increasing their spending power means that businesses, both domestic and globally will see an increase in revenue and demand leading to more staff being hired, investment in capital expenses and / or automation, increased profitability and increased GST and tax revenue.

Crown revenue will increase without the need to introduce new taxes or raise current rates and services could improve.

The thought that removing pay equity will enable the government to balance the books is a fallacy as it does not consider the proven economic behaviour of these demographics and multiplied impact of their spend both immediately and accumulative over the long term.

RŌA consulting believes that a thriving whānau means a thriving community and thriving economy.