Behind the Scenes: How the Government Kept Pay Equity Changes Hidden

Recent internal documents obtained by RNZ have exposed a covert strategy by New Zealand ministers to keep major pay equity reforms under wraps until the last possible moment. The move, aimed at preventing a flood of claims and protecting the government’s financial position, has raised serious concerns about transparency and democratic accountability.

According to emails and briefings leaked to the public, ministers and their staff were aware that their plans would bypass public scrutiny, extinguish ongoing claims, and potentially breach individuals’ rights. Despite this, they proceeded with their strategy, ensuring that the information remained confidential until the bill was introduced in May.

The announcement was swift, and the bill was passed under urgent conditions. Overnight, it halted 33 active claims, some of which had been ongoing for years. The legislation also raised the threshold for proving that work had been historically undervalued, forcing claimants to restart the process under the new rules.

The changes, revealed in the Budget, are expected to save the government around $12.8 billion over the next four years. However, the strategy to keep the bill secret has been widely criticized as “particularly unusual and draconian.” The internal discussions also acknowledged that the rushed timeline left no room for public submissions, and limited analysis of the policy was conducted.

One internal memo, from the office of Workplace Relations and Safety Minister Brooke van Velden, warned that digital access to cabinet papers must be manually removed to avoid leaks. Another document described how hard copies were hand-delivered to ministers’ offices to avoid digital trails, with officials stating, “this was the method of distribution that has been advised.”

Internally referred to as “Project Ten,” the strategy involved preparing a comprehensive communications pack to be released only after the bill was passed. One paper recommended that any announcements about the proposed changes must be made after the bill’s introduction, citing the risk of a surge in claims if information was made public beforehand.

Despite the government’s awareness of the contentious nature of the changes, officials proceeded with the legislation. The proposed transitional arrangements, which “retrospectively remove and alter people’s rights,” were noted as “most likely to be contentious” and “may engage the Human Rights Act and Bill of Rights Act.”

The documents reveal a clear focus on fiscal concerns, with the reduction of costs to the Crown as a key driver. However, the lack of public consultation and the potential for unintended consequences have sparked widespread criticism.

What’s next? With the bill now in place, the focus shifts to its implementation and the long-term impact on workers and employers. Advocacy groups are expected to challenge the changes, and legal experts are analyzing the potential for future litigation.

Opinion: While the government may have succeeded in achieving its short-term financial goals, the lack of transparency and public input has left a lasting mark on New Zealand’s democratic process. This raises important questions about the balance between fiscal responsibility and the protection of workers’ rights.