Appendix 4 - Pay Equity
The following is an overview of federal, provincial and territorial approaches to pay equity.
Government
Government of Canada
A pay equity task force submitted its report in June 2004. It recommended a stand-alone pay equity legislation, obliging employers and employees together to develop a plan to implement pay equity with dispute resolution and enforcement mechanisms.
In September 2006, the Government indicated that it would strengthen support to federally-regulated workplaces to help them meet their obligations under the current federal pay equity legislation through increased education; specialized mediation assistance; and compliance monitoring.
Newfoundland and Labrador
The Government and five unions agreed to conduct a review to the classification system to see if there was systemic discrimination toward female dominated classes. The result of the agreement was that the female dominated classes received pay equity adjustments over a 10-year period starting in 1999. All legal requirements under the original agreement have been met.
Government and the unions agreed to implement a gender-neutral job evaluation system. The Government is waiting for a decision from the Nurses Union as to whether they wish to participate in the new system.
Prince Edward Island
Pay equity legislation came into effect in PEI in 1988 and has been fully implemented in the broad public sectors of the province. The province continues to monitor the wage gap.
Nova Scotia
The Labour Standards Code, R.S.N.S. 1989, c.246, requires that men and women be paid at the same rate for work of equal value.
New Brunswick
Pay equity principles are a part of New Brunswick's Employment Standards Act. Between January 2005 and May 2006 (inclusive), the Employment Standards branch received 13 enquiries related to pay equity, which resulted in zero complaints being submitted.
New Brunswick is addressing pay equity within the bigger picture of wage gaps. The Wage Gap Roundtable submitted a report in February 2004. The government's response to the report was a five-year voluntary action plan called “ Facing the Economic Imperative". Implementation of the plan began on April 1, 2005. A launch of tools to assist employers implement pay equity will be held in November 2006.
The Plan seeks to address the wage gap by changing societal attitudes with respect to women's roles and their participation in the labour force, and implementing initiatives to increase the sharing of family responsibilities, reduce job clustering and increase the use of gender-neutral pay practices in order to reduce that portion of the wage gap attributable to the under evaluation of women's work.
A Ministers' Employer Advisory Group, an Advisory Group with representation from Women's Groups, and a Human Resources Professionals Committee are monitoring implementation of the plan. Government has committed to eliminating the wage gap throughout the public service by 2010.
Québec
Québec has specific legislation on pay equity, the Pay Equity Act. Adopted in 1996, this Act requires employers to redress differences in compensation due to the systemic gender discrimination suffered by people who occupy positions in predominately female job classes.
The Government of Québec has implemented additional measures to enable companies to complete and expedite their pay equity exercises.
The application of the Act in Québec companies has yielded significant results. Preliminary data indicates that one third of the completed pay equity exercises will lead to salary adjustments representing on average salary increases of between 3.9 percent and 8.1 percent. Other positive results include improved working climate and relations, increased productivity, a more positive perception of fairness within companies, a better understanding of jobs involved and updated or newly introduced wage policies.
Ontario
Ontario has complaints-based pay equity legislation. The Pay Equity Commission (http://www. labour.gov.on.ca/pec/index_pec.html), is mandated to promote pay equity across the various sectors, and is composed of two separate and distinct bodies. The Pay Equity Office is responsible for implementing and enforcing the Pay Equity Act. It investigates, mediates and resolves complaints and provides programs, tools and services to help public and private sector employers, employees and bargaining agents understand and comply with the Act. The Pay Equity Hearings Tribunal is responsible for adjudicating disputes that arise under the Pay Equity Act.
Proxy pay equity adjustments are benefiting women workers in the lowest paid female sectors of the broader public sector. 1,002 cases have been resolved since 2003. Over $400 million has been paid to broader public sector jobs over six years.
Manitoba
The Manitoba Pay Equity Act (1985) promotes pay equity principles generally. It applies to Manitoba's civil service, universities, Crown corporations and health care facilities. There is no individual complaint mechanism under Act.
Manitoba's Human Rights Code applies to equal pay for equal work. The Employment Standards Code applies to equal pay for equal work for women and men doing the same or substantially the same work in the same establishment.
Saskatchewan
Saskatchewan has no specific pay equity legislation. However, The Labour Standards Act provides that no employer shall discriminate between male and female employees by paying a female employee at a rate of pay less than the rate paid to a male employee, or vice versa, where the employees are employed for similar work that is performed in the same establishment under similar working conditions and the performance of which requires similar skill, effort and responsibility, except where payment is made pursuant to a seniority or merit system.
The Government implemented pay equity and internal equity in the public sector, through the 1997 Equal Pay for Work of Equal Value and Pay Equity Policy Framework. Internal equity applies pay equity principles to all jobs, whether male or female dominated. Jobs are classified and compensated relative to all jobs in a single organization on the basis of relative worth. The policy mandate covers Executive government, Crown corporations, and the health sector. There has been some limited, voluntary implementation in the education sector. The Framework has achieved gains for most female employees and some male employees in most organizations, and has narrowed the wage gap in every organization in which it has been implemented.
Alberta
Alberta does not have specific pay equity legislation, however, the human rights legislation provides for equal pay for equal work within the same establishment (i.e. branch office, franchise store).
British Columbia
Equal pay for equal work is protected under section 12 of the BC Human Rights Code, which prohibits discrimination based on gender for similar or substantially similar work. The legislation is supported by education and awareness through ministry-funded activities such as consultations with and training for employers delivered by the Human Rights Clinic, and public information such as pamphlets and Web sites.
Nunavut
The Government of Nunavut is drafting a new Public Services Act that will include pay equity provisions.
Northwest Territories
Equal Pay provisions of the NWT Human Rights Act came into effect during the reporting period. Under this legislation, no person shall, on the basis of a prohibited ground (including gender), pay an individual less for work that is the same or substantially similar.
The NWT Public Service Act also contains equal pay provisions that require that there be no difference in the rate of pay between male and female employees of the same establishment who perform work of equal value.
Yukon
The Yukon Government is bound by the provisions for equal pay for work of equal value as outlined in the Yukon Human Rights Act. In addition, the Job Evaluation System used by the government for its workforce is predicated on the notion of equal pay for work of equal value.