MP calls for end to pay secrecy

Labour MP Camilla Belich wants to ensure workers are free to share their pay information, and has added a private member’s bill to the parliamentary ballot.

Belich, who is on the education and workforce select committee, said employees could be prevented from disclosing their pay to others through clauses in their individual or collective contracts, or through their workplace policies.

Some employers may wish to retain control of pay information, which constrained the ability of individuals to bargain and reduced the power of employees, she said.

Her proposal seeks to amend the Employment Relations Act 2000 to allow employees to disclose their remuneration.

The bill would seek to ensure that employees could ‘‘discuss and disclose their own pay rate to others without detrimental repercussions to their employment’’, Belich said.

‘‘It is hoped that this would lead to greater transparency in pay and allow any pay discrimination to be more easily identified and remedied.’’

The bill would bring New Zealand into line with similar legislation in Canada, the United Kingdom and 19 states and the District of Columbia in the United States. In Australia, a bill that would make pay secrecy clauses unenforceable is currently before the Senate. Belich said her bill complemented other initiatives the Government was working on, including equal pay and pay transparency.

It was difficult to know the extent of the problem as there was no register of employment contracts, although anecdotal evidence suggested people were reluctant to discuss pay for fear of disciplinary action by their employer, she said.