I have addressed this issue before, seen here, here and here. Essentially, the reports discussed in my previous blogs suggest that women remain underrepresented relative to their male counterparts despite the fact that they form a highly educated and skilled labour pool. This is especially true in the case of women in higher level management and professional positions. And let’s not forget that the earned income gap has been attributed to motherhood and workforce attitudes about motherhood, whereby women appear to face wage penalties that have nothing to do with their skills, education and experience. These findings are not at odds with this new StatsCan report.

Some good news coming out of the study was that within the younger worker groups, there were less significant differences in gender wage gaps. This means that attitudes may be starting to change…but still, in my view, we have a long way to go.

The study aimed to determine some of the reasons the gender wage gap has been decreasing. Suggested reasons include:

• Female workers are not yet in upper management positions because they first had to show increased representation in lower-level positions before transitioning into management
• In terms of education, there are persistent differences in the fields of study chosen by men and women; women are still choosing fields such as education and the humanities rather than male-dominated fields such as mathematics and engineering
• When examining real wages on an hourly basis, the gap decreased
• The Canadian economy experienced structural changes such as the shift away from manufacturing jobs, and this had a significant impact on the unionization rates which led to the lower earning power of men
• While women’s real wages were increasing, men’s real wages were only minimally increasing or declining
• Since older men are much less likely to hold management jobs in 2008 than their 1988 counterparts, and since managers generally earn higher wages, there was a significant decline in the gender pay gap
• The wages of men and women in age cohorts stopped diverging as they aged, and this could be attributed to differing career paths: first, as women’s children age, they may be able to devote more time and energy to the paid labour market by accepting promotions or acquiring training; second, female workers have traditionally been viewed as more likely to quit and be absent from work, but since evidence has shown that there is little gender difference in permanent quit rates and absenteeism, the wage gap within a given cohort may have narrowed or remained stagnant since quits and absenteeism could no longer be viewed as important explanations for women’s lower wages
• For younger workers, the increasing educational attainment of younger women and their move to higher-paying occupations like health and education accounted for a significant narrowing of the gender wage gap
• The correlation between the wage gap and age has always been present, but it has weakened with each successive year (there is less of a gap with younger workers); this suggests a “cohort replacement effect”, whereby as younger cohorts replaced older ones, the overall gap declined simply because the gap was smaller in new cohorts than in those that preceded them

What do you think?

Christina Catenacci
First Reference Human Resources and Compliance Editor

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This is the law, so I was amazed to find out how challenging the state of non-compliance is.

In Quebec, in 2008, ten years after the Pay Equity Act was enacted, women still earn 11 percent less than men. Those were the findings of an economic analysis study conducted by Analysis Group, Economic, Financial and Strategy Consultants on behalf of the Ordre des CRHA et CRIA du Québec (ORHRI). According to the Quebec government, more than half of companies had not implemented the required pay equity plan and measures, and several had not maintained their pay equity plans as required by law.

As a result, the Quebec government modified its pay equity measures last May, and these changes have repercussions for all employers. The law was amended to address several issues, including that of non-complying companies.

Companies with 10 or more employees who still find themselves in non-compliance have until December 31, 2010, to rectify the matter and implement their pay equity plan. If your company has complied but not maintained your plan up to date, new maintenance rules have been introduced. Consequently, the formal evaluation of the maintenance must be done every five years, the first being due December 31, 2010.

Any company that is not yet subject to the law must calculate the annual average salary of its workers, retroactive to 2008.

The results of the maintenance must be posted in conspicuous places at the company (notice boards, intranet, etc.). Finally, the employer must complete a statement and send it to the Quebec Pay Equity Commission.

How about Ontario? According to the Equal Pay Coalition, women in Ontario, on average, still earn 29 percent less than men. Indicating that the law in Ontario is not faring any better than in Quebec. Employers are still not complying with the Pay Equity Act, 21 years after enactment (1988). However, the Ontario government has not taken any drastic measures to enforce the law.

It may be that employers find the law very complex and not easy to comply with. Nevertheless:

• Employers who have not yet complied with the law should proceed to take measures to comply to avoid very costly adjustment plans.
• Employers who have complied should look closely at their pay equity plans to ensure that they have complied with the maintenance requirements.
• Employers are required to make annual adjustments until pay equity is achieved.

The provincial governments have various tools and resources to help you achieve pay equity.

In Ontario, the tools can be found in the Library of the Pay Equity Commission website at www.payequity.gov.on.ca/peo/english/pubs_tools.html.

In Quebec, the tools can be found under Publications on the Pay Equity Commission website at www.ces.gouv.qc.ca/asp/publications.asp

Note that Quebec’s and Ontario’s Pay Equity Acts do not apply to employees of the federal government, federal agencies or federally regulated companies. The pay equity sections of the Canadian Human Rights Act cover employees of these employers.

In other Canadian jurisdictions, human rights legislation includes equal pay provisions based on the prohibited ground of sex or gender. And in some jurisdictions, there are also equality of pay provisions under the employment standards laws, which are very different from pay equity legislation.

What challenges do you face when it comes to complying with pay equity legislation?

Yosie Saint-Cyr
Human Resources and Compliance Managing Editor

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