Executive summary
Pacific peoples have contributed to growing wealth in
Aotearoa New Zealand but have yet to benefit equally
from their contribution.
In light of the Human Rights Commission’s Inquiry
into the Pacific Pay Gap, this literature review
examines the literature relevant to the Pacific
Pay Gap and Pacific peoples’ experiences in the
workplace and possible mechanisms for change.
Importantly, this literature review notes that, for
many Pacific peoples, the pay gap contributes to
anxieties about being able to contribute to their
family and community wellbeing.
It should first be noted that, to date, a limited
amount of research has been done on this topic.
This in itself is indicative of the voices and stories
of Pacific peoples not being heard as much as they
should in Aotearoa New Zealand. Nonetheless,
there is sufficient research for which this literature
review shows that, despite Pacific peoples’ significant
historical and ongoing contribution to the New
Zealand economy, they continue to be disadvantaged
through wider structural and institutional forces
such as colonisation, neoliberalism, and racism. The
intersectional nature of these forces means that
Pacific women, peoples with disabilities, migrants
and māhū, vakasalewa, palopa, fa’afafine, akava’ine,
fakaleiti (leiti), fakafifine (MVPFFF+) or Pacific rainbow
communities experience these forces differently.
In 2021, the gap between the median hourly
earnings of Pacific men and Pākehā men was
18.8 percent. The gap was even larger for Pacific
women compared with Pākehā men at 25.1 percent.
Alongside Māori women, Pacific men and women
experience the largest pay gaps compared to other
ethnic groups. The literature suggests that the
Pacific Pay Gap can be addressed in part through
closing the educational attainment gap. However,
further structural and societal change, including
addressing discriminatory workplace practices, to
fully address the Pacific Pay Gap.
Pay gaps and unfavourable working conditions exist
in the three industries in focus for the Pacific Pay Gap
Inquiry: construction, manufacturing, and healthcare.
However, the literature indicates that there are
important differences across these three industries.
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The construction industry has a lower-than-average
Pacific Pay Gap, but the gap is increasing over time.
Pacific peoples in construction also have the highest
in-work poverty rate in the industry compared
to other ethnic groups. Another issue for Pacific
peoples in the construction industry is precarious
employment, which has resulted in Pacific peoples
engaging in temporary, casual, fixed-term or zerohour contracts characterised by irregular working
hours and little opportunity for upskilling or career
progression. This precarity has been identified
as a contributing factor to poor health and safety
practices and outcomes. Pacific construction workers
have articulated how neoliberalism and racism
contribute to their precarious employment.
The manufacturing industry experiences a higherthan-average Pacific Pay Gap. Pacific peoples
have the highest in-work poverty rate within the
manufacturing industry compared to other ethnic
groups. The manufacturing industry dominates
Accident Compensation Corporation (ACC) claims.
Pacific and Māori peoples have the highest incident
reporting but lowest acceptance rate for ACC
claims. Pacific peoples experience racism in the
manufacturing industry, with much of it tied to
communication.
Pacific peoples in the healthcare industry experience
the same pay gap as the national average. Pacific
peoples are overrepresented amongst low-skilled and
low-paying occupations within the sector, primarily
occupying low-level administrative roles. Pacific
workers in the healthcare industry have an in-work
poverty rate of 8.6 percent, significantly higher than
all other ethnic groups. Pacific peoples in healthcare
have also reported experiencing racism through
recruitment practices that create hostile workplaces
and lower pay equity, reducing retention and
progression rates for Pacific workers. Furthermore,
Pacific migrant workers within healthcare have
reported having to accept lower-skilled and therefore
lower-paid work as their Pacific region qualifications
and work experience are not accepted.
There is a significant gap in legislation internationally
for addressing ethnic pay gaps. However, there are
two main mechanisms for addressing the gender
pay gaps that can be applied to the ethnic pay gap:
comprehensive pay transparency and mandatory