The Government is scrapping a unit within the Department of Labour that deals with pay and employment equity, with seven jobs being cut.
Labour Minister Kate Wilkinson says the unit's work on the causes of New Zealand's gender pay gap remains a valuable source of information.
She says the Government will now get advice on the issue from other groups.
The Public Service Association says the move "nails the coffin shut" on efforts to gain pay equity for women.
The union says 18 other people in the department who focused on regional workforce needs, such as seasonal harvesting, have also lost their jobs.