Title page 1

Contents 4

Pay Equity Task Force Members 13

Note from the Chair 15

Acknowledgements 16

Introduction 17

Background and Terms of Reference 17

Our Process 18

Consultations 19

Public Hearings 19

Roundtables 19

Private Meetings 20

Research 20

Symposium 21

Common Ground 22

Chapter 1 - Wage Inequities 25

Canadian Overview 28

Gender Wage Inequality 28

Occupational Segregation 30

Federal Jurisdiction 34

Federal Jurisdiction - Public Sector 34

Federal Jurisdiction - Private Sector 36

Organization Size 39

Studies of the Wage Gap 39

Devaluation of Female Jobs 41

Prejudices and Stereotypes 41

Job Evaluation Methods 43

Pay Practices 44

Bargaining Power 45

Designated Groups in the Labour Market and Wage Gaps 48

Members of Visible Minorities 48

Canadian Overview 48

Federal Public Service 52

Federal Private Sector 54

Empirical Research 54

Aboriginal People 56

Canadian Overview 56

Federal Public Service 57

Federal Private Sector 58

Empirical Research 59

Persons with Disabilities 59

Canadian Overview 59

Federal Public Service 60

Federal Private Sector 62

Empirical Research 62

Conclusion 62

Chapter 2 - The Canadian Legislative Response 64

The Changing Concept of Equal Pay 64

Canada's International Obligations 67

ILO Convention No. 100 67

International Covenant on Economic, Social and Cultural Rights 69

International Covenant on Civil and Political Rights 70

Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) 71

Beijing Declaration and Platform for Action 71

"Beijing +5" Review 73

ILO Declaration of 1998 73

Domestic Significance of International Commitments 75

The Federal Plan for Gender Equality 76

Legislation in Canada 78

Labour Standards Legislation 78

Human Rights Legislation 79

Complaint-Based Legislation 80

Proactive Legislation 81

Manitoba 81

New Brunswick, Nova Scotia and Prince Edward Island 82

Ontario and Quebec 83

Ontario 83

Quebec 85

Non-Legislative Approaches 87

Saskatchewan 87

Newfoundland 87

British Columbia 88

Alberta 89

Conclusion 89

Labour Standards 89

Human Rights 90

The Canadian Experience Is Uniquely Varied 90

Chapter 3 - The Current Pay Equity Model 92

Section 11 of the Canadian Human Rights Act 92

The Equal Wages Guidelines, 1986 94

Administration of Section 11 96

The Canadian Human Rights Commission 97

Equal Pay for Equal Work 98

Employment Equity 100

The Canadian Human Rights Tribunal 101

Human Resources Development Canada 104

Summary of the Current System 105

Assessing the Current System 107

A Positive Legacy 107

Limitations of the Current Model 112

Conclusion 122

Chapter 4 - The Proactive Model 125

The Characteristics of Proactive Models 126

Proactive Legislation in the Public Sector 127

Manitoba 127

Nova Scotia 128

Prince Edward Island 129

New Brunswick 129

Proactive Legislation Targeting All Economic Sectors 130

Ontario's Pay Equity Act 130

Universality of the Scope of Application 131

Flexibility 131

Participation 132

Pay Equity Maintenance 132

Control and Auditing 133

Assessment of Results 133

Salary Adjustments for Female Workers 133

The Situation of Non-Unionized Female Workers 136

Other Effects on Female Workers 137

Financial Costs for Employers 138

Other Effects on Organizations 141

Lessons from the Ontario Experience 141

Quebec's Pay Equity Act 143

Universality of Application 145

Flexibility 146

Participation 146

Pay Equity Maintenance 146

Control and Auditing 147

Pay Relativity 147

Assessment of Results 148

Salary Adjustments for Female Workers 150

Effects on Organizations 150

Non-Unionized Female Workers 151

Conclusion 152

Advantages 152

Disadvantages 153

Chapter 5 - The Recommended Model 154

A Legislative Home for Pay Equity: Human Rights or Labour Law? 155

Labour Legislation 155

Human Rights Legislation 159

Pay Equity: A Fundamental Right 162

A Stand-Alone Pay Equity Statute 163

A Positive Obligation 166

Comprehensive Legislation 169

Clear Standards 170

Methodological Flexibility and Gender Inclusivity 171

Employee Participation 174

Adequate Institutional Support and Training 176

Maintenance and Follow-Up 178

Specialized Oversight Agencies 178

A Purposive Statute 180

Equal Pay for Equal Work 182

The Broader Picture 185

Conclusion 187

Chapter 6 - Scope of Application 188

Scope of Coverage 188

Public Sector and Private Sector 188

Federal Contractors 189

Parliament as an Employer 190

The Changing Canadian Workplace 191

A trend towards smaller employers 191

Changes in the nature of work 192

Changes in the organization of work 192

Continued significance of part-time employment 192

Trend toward more self-employment 192

Changes in employment relationships 193

Size of Employer 194

Part-Time, Casual and Temporary Work 197

Contractors 199

Employees of Employment Agencies 203

Successorship 204

Additional Grounds 209

The Unit for Comparison 213

Pay Equity Unit 214

The Territorial Governments 225

Chapter 7 - The Pay Equity Plan 227

The Elements of a Pay Equity Plan 228

Conclusion 231

Chapter 8 - Employee Participation 233

Employee Participation: An Important Guarantee of Compliance with the Legislation's Fundamental Objective 235

The Pay Equity Committee 237

The Mandate of the Pay Equity Committee 239

Representativeness of the Pay Equity Committee 240

Authority of the Pay Equity Committee 245

Postings 247

Employee Rights with Respect to Participation 252

The Right to Protection Against Retaliation 252

The Right to Paid Time 253

The Right to Training 253

The Right to Information 256

Conclusion 257

Chapter 9 - Predominance in Job Classes 258

Job Classes 258

Definitions and Classification Criteria for Jobs in Canadian Jurisdictions 259

Homogeneity of Job Classes 261

Flexibility in Applying Criteria 263

Size of Job Class 264

Grouping of Job Classes 264

Predominance of Job Classes 265

Definition of Predominance and Predominance Criteria in Canadian Jurisdictions 266

Historical Incumbency 269

Occupational Stereotypes 269

Disproportion Between the Rate of Representation of Women or Men in a Job Class and Their Rate of Representation in the Employer's Total Workforce 269

Intra-Occupational Segregation and Rate of Representation of Women or Men in a Sub-Category of a Job Class 270

Quebec's Charter of Human Rights and Freedoms - Rate of Representation of Other Groups Under Section 10 270

Rate of Representation of Women Who Also Meet Other Discrimination Criteria 270

Disproportion Between the Rate of Representation of a Group in One Job Class and the Rate of Representation of That Group in the Labour Force 271

Predominance Indicators under Proactive Federal Legislation 273

Statistical Indicators 273

Qualitative Criteria 274

A Significant Gap Between the Rate of Representation in a Job Class and the Rate of Representation in the Workforce under the Plan 276

Historical Incumbency 276

Occupational Stereotypes 277

Inclusion of Other Designated Groups 278

Double Discrimination 278

Simultaneous Use of the Gender Criterion and Other Discrimination Criteria When Determining Predominance 279

Conclusion 282

Chapter 10 - Evaluating Gender Predominant Job Classes 283

Job Evaluation in Pay Equity and the Non-Discrimination Requirement 285

Evaluation and Subjectivity 287

Job Evaluation for Pay Equity Purposes in Canadian Jurisdictions 289

Job Evaluation for Pay Equity Purposes: A Few International Examples 292

The ABAKABA and ÉVALFRI Methods 292

The NJC System - National Joint Council Job Evaluation System (NJC JES) 293

Steps to Pay Equity: An Easy and Quick Method for the Evaluation of Work Demands 294

Evaluation Methods 296

Global/Ranking Methods 296

Analytical Evaluation Methods: The Point Method 297

Evaluation Criteria or Factors 297

Qualifications 298

Responsibilities 298

Effort 300

Conditions Under Which the Work Is Performed 301

Degrees or Levels of Subfactors 303

Evaluation Tools 305

Administering the Questionnaire 307

Assigning Ratings to Job Classes 307

Weighting 309

The Implications of A Single Pay Equity Plan 310

Conclusion 313

Chapter 11 - Estimating and Correcting Wage Gaps 314

Compensation 314

Approaches in Canadian Jurisdictions 315

Total Compensation 317

Calculating Total Compensation 319

Salary Ranges 319

Flexible Pay 319

Monetary Benefits 325

Including Monetary Benefits in Wage Comparisons 332

Time-related benefits 334

Group coverage benefits 335

Non-wage benefits 335

Wage Comparisons 336

Approaches in Canadian Jurisdictions 336

Choosing a Wage Comparison Method 339

The Job-to-Job Methodology 340

The Job-to-Line Methodology 342

The Job-to-Segment Methodology 344

The Line-to-Line Methodology 345

Wage Adjustments 348

Preventing Wage Reduction 348

Harmonizing Differentiated Pay Structures 348

Terms of Payment for Wage Adjustments 351

Wage Comparisons Where No Male Comparator Exists Within the Plan 352

Wage Comparisons Where No Male Comparator Exists Within the Organization 353

Conclusion 356

Chapter 12 - Allowable Exemptions 357

Merit or Performance Pay 363

Seniority 365

Red-Circling 366

Skills Shortages 369

Regional Pay Rates 371

Bargaining Strength 373

Benefits for Temporary, Casual and Seasonal Workers 377

Conclusion 378

Chapter 13 - Maintenance of Pay Equity 380

General Framework for Maintenance 380

The Obligation to Maintain Pay Equity 383

The Pay Equity Committee 384

Training and Information 385

The Principle of Continuity 386

Frequency 388

Posting 390

Pay Equity Maintenance and Changes in Organizations 391

Creation of New Job Classes 392

Disappearance of a Job Class 393

Change in the Gender Predominance of Job Classes 393

Changes in the Content of a Job Class 394

Change in Pay 394

Renewal of Collective Agreements 395

Sale or Disposition of the Organization in Whole or in Part 397

Payment of Adjustments in the Context of Pay Equity Maintenance 398

Pay Equity and Internal Equity 399

Conclusion 400

Chapter 14 - Enforcement 401

Canadian Pay Equity Commission 405

i) Complaints 406

ii) Compliance Orders 406

iii) Investigations 407

iv) Reporting 408

v) Audits 410

Canadian Pay Equity Hearings Tribunal 412

i) Ameliorative Remedies 412

ii) Sanctions 414

iii) Cease and Desist Orders 416

iv) Compensation 416

v) Fines 418

vi) Directions to Publish or Post Information 418

vii) Orders for Costs 419

Pay Equity Adjudicators 420

Prosecutions and Penal Sanctions 421

Enforcement by the Courts 423

Conclusion 424

Chapter 15 - Timelines and Transition 425

Target Dates and Timelines 425

Monitoring 433

Transition 433

Chapter 16 - Pay Equity and Collective Bargaining 440

Canadian Collective Bargaining System 441

Collective Bargaining in the Federal Jurisdiction 447

Federal Public Service 448

Collective Bargaining and Pay Equity 448

Responsibility of the Employer 454

Responsibility of Trade Unions 456

Duty of Fair Representation 459

Responsibility to Other Employees 461

Example of Occupational Health and Safety 462

Effect of the Proposed Model on the Collective Bargaining Process 464

Conclusion 467

Chapter 17 - Oversight Agencies 469

Need for Proactive Oversight 469

Importance of Self-Monitoring 470

Importance of Resources 471

Stand-Alone Agencies 472

Public Education, Promotion and Information 473

Advice and Technical Assistance 476

Investigation and Fact Finding 477

Dispute Resolution 478

Compliance Orders 481

Advocacy 481

Adjudication 485

Adjudicative Functions 488

Regulation and Monitoring 489

Audit System 489

Rule and Policy Making 490

Appeals 492

Enforcement and Remedies 493

Structure 495

Canadian Pay Equity Commission 497

i) Public education and promotion 498

ii) Advice and technical assistance 498

iii) Investigation and fact finding 498

iv) Dispute resolution 499

v) Regulation and monitoring 499

vi) Rule making and policy making 500

vii) Enforcement 500

Canadian Pay Equity Hearings Tribunal 501

i) Investigation 502

ii) Dispute resolution 502

iii) Rule and policy making 502

iv) Adjudication 503

Pay Equity Adjudicators 504

Parliamentary Review 504

Conclusion 505

List of Recommendations 506

Appendix A - Pay Equity Secretariat 524

Appendix B - Terms of Reference 525

Appendix C - Canadian Human Rights Act, R.S. 1985, C. H-6 527

Appendix D - Equal Wages Guidelines, 1986 SOR/86-1082 528

Appendix E - Canada Labour Code, Part III, R.S. 1985, C. L-2 532

Appendix F - Submissions 533

Appendix G - Consultation Process 535

Appendix H - Commissioned Research 547

Select Bibliography 557

Table 1.1. Women to Men's Average Employment Income, Full-Time, Full-Year Workers Canada, 1995 and 2000 29

Table 1.2. Women to Men's Average Employment Income, Full-Time, Full-Year Workers with a University Degree, Canada 1995 and 2000 29

Table 1.3. Femininity Ratio for Occupations Accounting for 70 Percent of the Female Workforce Canada, 1987 and 2002 31

Table 1.4. Ten Lowest-Paying Occupations, Full-Year, Full-Time Workers, Canada 2000 32

Table 1.5. Ten Highest Paying Occupations, Full-Year, Full-Time Workers Canada 2000 33

Table 1.6. Distribution of Federal Public Service Employees by Gender and Occupational Category March 31, 2002 36

Table 1.7. Full-Time Employees by Sector, 2001 37

Table 1.8. Occupational Groups Accounting for 69.6 Percent of the Federally-Regulated Female Workforce, 2001 38

Table 1.9. Misconceptions regarding Women's Skills and the Impact on Occupational Segregation 42

Table 1.10. Distribution of the Labour Force by Level of Education, Canada 1996 49

Table 1.11. Rate of Representation for Visible Minorities by Sex for Various Employment Equity Occupational Groups, Canada 1996 51

Table 1.12. Income Ratio for Visible Minority Workers by Sex, Full-Time, Full-Year Workers, Canada 1996 52

Table 1.13. Distribution of Federal Public Service Employees by Gender, Visible Minorities and Occupational Category, March 31, 2002 53

Table 1.14. Income Ratio for Aboriginal Workers by Sex, Canada 1996 57

Table 1.15. Distribution of Federal Public Service Employees by Gender, Aboriginal People and Occupational Category, March 31, 2002 58

Table 1.16. Distribution of Federal Public Service Employees by Gender, Persons with Disabilities and Occupational Category, March 31, 2002 61

Table 4.1. Pay equity results in Manitoba 128

Table 4.2. Posted pay equity plans by organization size 134

Table 4.3. Salary adjustments as a percentage of payroll 139

Table 4.4. Administrative costs for pay equity by organization size, Ontario 139

Table 4.5. Application by organization size 144

Table 4.6. Implementation deadlines 144