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What Is Pay Equity? The Pay Equity Act was legislated in Ontario in 1987, and was designed to encourage equal pay for work of equal or comparable value. The Pay Equity Act was amended in 1990 and made law in Ontario to narrow the wage gap that exists between women and men’s wages. (www.gov.on.ca, 2002). Furthermore, it is a means of eliminating racial discrimination in the wage setting system. Women, Aboriginal people, people with disabilities and visible minorities are still segregated into a smaller number of jobs ~ such as clerical, service workers, nurses, and teachers. These jobs have been historically undervalued and continue to be underpaid because of the gender and race of people who hold them. Studies show that an occupation that is primarily dominated by women or people of colour pays less. Part of the wage gap results from the differences in education, experience, or time in the workforce. But, a significant proportion cannot be explained by any of those factors; it is attributed to wage discrimination. Pay equity means that the criteria an employer uses to set wages must be sex and race neutral. Also, white men can benefit from pay equity as well if they are working in female-dominated jobs, as do non-minority workers in minority-dominated jobs. According to the 1999 report on “Equal Pay for working families” the four million men that occupy predominately female jobs will lose approximately $6,259 each year. (www.aflcio.org/women/, 2002) Who Does The Pay Equity Act Cover? All employers in the public sector in Ontario are covered by the Act. As well as all private sector employers in Ontario that employ more then 10 employees. Furthermore, all full time and part-time public and private sector employees of employers covered by the Pay Equity Act, in addition to seasonal employees. Those not covered by the Act are: employers in the private sector with fewer than 10 employees, students working during their vacation periods, and employers and employees of the federal government of Canada or companies regulated by the federal government, such as chartered banks and broadcast stations. They are covered for pay equity under the Canadian Human Rights Act. (www.web.net/equalpay/payequ.hmtl, 2002). According to the pay Equity Act, it is optional for private sector employers with 10 to 99 employees to post a pay equity plan. If they decide not to post a pay equity plan they must post a “Notice of Requirement to Achieve and Maintain Pay Equity” in the workplace. Plans and notices must be posted in a prominent place in the workplace where they can be seen and read by all employees. (www.web.net/equalpay/payequ.hmtl, 2002). The Principles Of The Pay Equity Act The Pay Equity Act is based on the following principles: · Pay equity is accomplished through a self-reliant process, with minimal government involvement. · “Female job classes”, or jobs performed mainly by women are compared to “male job classes”, or jobs performed mainly by men. These jobs may be quite different. · The value of a job, not an individual employee’s performance within a job, is the basis of the comparison. · In general, pay equity comparisons are made among the job classes of an employer, not between different organizations. The only exception is the use of the proxy comparison method (see How to Compare Jobs section) by employers in the broader public sector who cannot achieve pay equity using the job-to-job or proportional value comparison methods within their organizations. · The value of a job classes is determined by measuring the factors of skill, effort responsibility and working conditions. The employer and the bargaining agent, where there is one, may further define theses four factors into sub factors I n way that is appropriate to the workplace.
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