Unions are pleading with the Government not to switch up how it manages pay settlements

A Cabinet paper states costs of all settlements to date are 1.55 billion dollars a year - which has been deemed significant.

It reduces central decision-making, puts more emphasis on employers and employees, and comes after the disestablishment of the pay equity taskforce.

Council of Trade Unions Vice President Rachel Mackintosh says the settlements go towards paying people so they can live lives of dignity.

She says you can't compare the monetary amount, to the human cost of under-paying people.