Pay Equity

1

• Pay Equity
• Achieving Maintaining
• Methods
• Job to Job - Proportional Value Proxy
• Job Evaluation

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Disclaimer

• This presentation is for information only, and
  is not intended to restrict Review Officers or
  the Pay Equity Hearings Tribunal in their
  determination of matters.
• Refer to the Pay Equity Act for exact
  interpretation.

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Agenda

• Summary of steps to achieving pay equity
• Job-to-Job
• Proportional Value
• Proxy
• Job Evaluation
• Objection and Complaint Process
• Pay Equity Maintenance

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Requirement to Achieve and Maintain
Subsection 7(1) Every employer shall establish
and maintain compensation practices that provide
for pay equity in every establishment of the
employer. Subsection 7(2) No employer or
bargaining agent shall bargain for or agree to
compensation practices that, if adopted, would
cause a contravention of subsection (1).
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No Statute of Limitations

• A complaint can be filed back to the date of a
  contravention of the Act

Retroactivity

• Retroactivity applies to the date of the
  contravention

Important

• Human rights legislation means there is no
  defense for non-compliance
• Archive all records that may impact on pay equity
  you could be asked for documentation at any
  time for any period
• Employers do not go back to proxy organizations
  for updated information to achieve or maintain
  pay equity proxy info date is always as of
  January 1, 1994

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Who is covered by the Pay Equity Act?
ONTARIO EMPLOYEES OF

• public sector employers
• private sector companies with 10 or more
  employees
• full-time and part-time employees
• seasonal workers

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These employees are Not covered by this law

• Student employed for his/her vacation period
  only
• Work for the federal government or an industry
  regulated by the federal government, such as
• banks, airlines, post offices, television and
  radio stations.
• Work in a casual position

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Casual Work
These positions are not casual
Casual positions are

• Often short-term
• Not usually needed to help run the business or
  fulfill the organizations mission
• Example
• A person is hired to survey clients on customer
  service the project will take 3 months to
  complete
• When the final report is turned in, the person is
  gone, and so is the position
• When casual positions become permanent, determine
  a reasonable date to include these positions in
  pay equity.

• If the work is performed for at least one-third
  of the normal work period that applies to similar
  full-time work
• If the work is performed on a seasonal basis in
  the same position for the same employer or
• If the work is performed on a regular basis,
  although for less than one-third of the normal
  work period that applies to similar full-time
  work.

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Equal pay for work of equal value
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Job Rate

• Job rate is defined as the highest rate of
  compensation for a job class.
• Compensation is defined as
• all payments and benefits paid to an employee who
  performs functions which entitles that individual
  to be paid a fixed amount.

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Steps to Pay Equity

• Determine the Employer and Bargaining Agent
• Determine achievement dates
• Determine the Establishment(s)
• Identify the number of plans
• Determine the female and male job classes
• Adapt and modify your job evaluation tools
• Compare female job classes to male job classes
  using Job-to-Job
• Prepare a Job-to-Job pay equity plan
• Use Proportional Value for female job classes
  unmatched under Job-to-Job
• Prepare a Proportional Value (PV) pay equity plan
• Use the Proxy method for all female jobs if
  youre a public sector employer unable to achieve
  pay equity for female jobs using the Job-to-Job
  or PV methods

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Determine the Employer and Bargaining Agent
Tribunal tests to determine Who Is the Employer

• Who has overall financial responsibility?
• Who has responsibility for compensation
  practices?
• What is the nature of the business?
• What is most consistent with achieving the
  purpose of pay equity?

The role of the bargaining agent

• The Pay Equity Act requires that in unionized
  workplaces, the following be negotiated
• Definition of establishment
• Job classes
• Method of job comparison
• The pay equity plan itself
• If both sides agree to the plan, the plan is
  signed, posted, deemed approved, then implemented.

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2. Determine Retroactive Achievement Dates
If you are complying for the first time

• Adjustments must be put in place immediately,
  retroactive to your original compliance date.

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3. Determine the Establishment(s)

• Establishment means all of the employees of an
  employer who work in a geographic division.
• A geographic division can be a county,
  territorial district or regional municipality.
  
• Refer to the Territorial Divisions Act and its
  regulations to define geographic parameters.
  www.e-laws.gov.on.ca
• The employer and bargaining agent (if any) can
  decide to combine geographic divisions for the
  purposes of pay equity.

4. Determine the Number of Plans

• One for each bargaining unit
• One for all non-union jobs

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5. Determine Female and Male Job Classes
Job Class means those positions in an
establishment with

• Similar duties and responsibilities
• Similar qualifications
• Similar recruiting procedures
• Same compensation schedule, salary grade or range
  of salary rates

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Determine the Gender of Job Classes, Consider

• The percentage of men and women doing the job
• 60 female
• 70 male
• Historical incumbency
• Who has held the job in the past
• Gender stereotype
• Are women or men usually associated with
  the work
• If none of the above criteria apply, you may have
  a gender neutral job class.

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6. The gender neutral comparison process

• To achieve pay equity for job classes in your
  workplace, you must be able to compare the

• Skills
• Effort
• Responsibility
• Working Conditions

To do this, employers and/or bargaining agents
usually use a gender neutral job comparison job
evaluation system.
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Adapt and Modify a Job Evaluation Tool

• Access up-to-date information
• Identify elements of work present in all jobs
• Organize elements into categories, that describe
  skill, effort, responsibility working conditions

• Modify the sample system/questionnaire to be used
  to collect information
• Create a weighting formula so points can be
  assigned
• Evaluate all the jobs according to the data
  collected

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Gender neutral comparison systems
These must be gender neutral

• Job information
• The job comparison tool to determine the value of
  the work the job evaluation system
• The application of the tool to determine the
  value of the work performed

Parties may develop their own system, but it must
meet the above criteria.
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Job Information
For pay equity purposes, all information
collected about jobs for pay equity should

• Be accurate
• capture the skills, efforts, responsibilities and
  working conditions for both male and female job
  classes in the establishment
• Be up-to-date
• capture information accurately and consistently,
  in the same way, at the same point in time for
  both male and female job classes
• Be complete
• capture the full range of work performed
• Be free of bias
• capture and describe work, especially the work
  done by women job information that is not
  collected will never be valued

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Its the job, not the Person!

• Pay Equity considers the job and what is
  necessary to perform it.
• It does not look at an individual and their
  particular qualifications unless it relates to
  the requirements of the job class, nor does it
  look at their personal performance on the job.

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To accurately collect job information

• Design a questionnaire / job description /
  interview process that consistently
• captures in the same detail the skills, efforts,
  responsibilities and working conditions for all
  jobs being evaluated.
• Include questions that
• solicit overlooked factors of work, especially
  womens work, in plain, simple and inclusive
  language that all employees will understand.
• Customize language and use examples and prompts
  that
• are specific to the work of the jobs being
  evaluated, especially womens work check for
  consistency in the level of detail describing
  both female and male job classes and avoid
  language that exaggerates male and female job
  duties.
• Describe the job, not yourself
• for example, you can state that you work with
  minimum supervision but not you need minimum
  supervision

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also

• Use active verbs such as assigns, charts,
  compiles, reports and schedules to describe your
  duties, and be specific about what you do
• for example, say you Review, purchase and
  maintain inventory of office supplies instead of
  you Order office supplies.
• Re-evaluate your job title for accuracy and
  gender neutrality
• for example, you are a Cleaner or Maintenance
  Worker not a Cleaning Lady - avoid using job
  titles on job descriptions by using a job code,
  and not specifying the gender of the incumbents
  in the job.
• Use employees in the jobs to
• collect the job information provide training or
  assistance to fill out job information, and get
  clarification if this information is unclear or
  incomplete.

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Bias in the collection of job information can
result from

• Missing information
• questions not answered or duties not described
  properly.
• Under describing
• not enough or understated job content.
• Over describing
• too much or overstated job content.
• Non-standardized job information
• job descriptions, questionnaires, employee
  interviews, questions asked or not asked.
• Describing an individuals performance in the
  job
• instead of what is required by the job itself.

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also

• Stereotyping job duties because of job titles
• i.e. All secretaries do the same thing.
• Relying on your latest knowledge of the job
• not the job information collected.
• Expectancy bias
• where were apt to see what we expect instead of
  whats actually there.
• Using different language to describe female and
  male jobs
• i.e. Men manage and direct, women supervise or
  coordinate
• i.e. Men assume responsibility, women assist or
  participate

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Frequently overlooked elements in job content
Skill
Effort

• Operating and maintaining several different types
  of office and manufacturing equipment
• manual dexterity required for giving injections,
  typing graphic arts
• writing correspondence for others, and
  proofreading and editing others work
• establishing and maintaining manual and automated
  filing systems
• training and orienting new staff
• dispensing medication to patients.

• Adjusting to rapid changes in office or plant
  technology
• concentrating for prolonged periods at computer
  terminals, lab benches and manufacturing
  equipment
• performing complex sequences of hand-eye
  co-ordination in industrial jobs
• deciding the content and format of reports and
  presentations to clients
• providing service to several people or
  departments, working under many simultaneous
  deadlines
• developing work schedules for subordinates
• frequent lifting (office or medical supplies,
  retail goods, injured or sick people).

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Frequently overlooked elements in job content
Responsibility
Working Conditions

• Stress from open noise, crowded conditions
• exposure to disease and stress from caring for
  ill people
• dealing with upset, irate or irrational people
• cleaning offices, stores, machinery, hospital
  wards
• heavy lifting (e.g., packing goods for shipment)
• frequent lifting and bending (e.g. childcare
  work)
• stress from answering complaints
• long periods of travel and/or isolation.

• Caring for patients, children, institutionalized
  people
• protecting confidentiality
• acting on behalf of absent supervisors
• representing the organization through
  communications with clients and the public
• supervising staff
• shouldering consequences of error to the
  organization
• preventing possible damage to equipment
• coordinating schedules for many people.

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When evaluating jobs

• Ensure all evaluators have the same understanding
  of the job comparison system and tools
• Individual raters should make independent
  evaluations
• Strive for agreement amongst evaluators
• Rate each factor across all jobs (not each job
  across all factors)
• Evaluate jobs in random order - rather than all
  the female jobs or all the jobs in a single job
  family or cluster (e.g. clerical jobs)
• Record levels given for each subfactor and your
  reasons for your choices

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GENDER NEUTRALITY THE SYSTEM

• Subfactors
• Define each subfactor as they apply to your
  workplace.
• Levels
• Define levels for each subfactor.
• A level measures the degree to which a subfactor
  is present in a given job.
• Weights
• Define each subfactor as they apply to your
  workplace.
• Define how important each factor is to your
  workplace by developing a weighting formula for
  your organization.

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Sample Subfactors

• Skill Knowledge
• Problem solving/judgment
• Interpersonal skills/contact
• Effort Mental Effort
• Physical Effort
• Responsibility Personnel, Policies, Practices
• Financial Resources
• Health, Safety Well Being of people
• Material Resources
• Information Resources
• Working Conditions Environment
• Hazards

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Subfactor and level definitions(A level measures
the degree to which a subfactor is present in a
given job - see example below)
Problem-Solving/Judgement This sub-factor
measures the problem-solving/judgement required
to do the job. It assesses the difficulty in
identifying various available choices of action
and in exercising judgement to select the most
appropriate action. It also considers mental
processes such as analysis, reasoning or
evaluation.
Level 1 A measure at this lowest level means
the sub-factors contribution to the overall
value of the job is very small. Problems faced
on the job tend to be routine and standard.
Solutions or required responses are set.
Decisions are obvious with few alternatives, or
the problem can almost always be referred to
someone else. Little choice of independent
action or judgement. Level 2 A measure at this
level means the sub-factor contributes to the
overall job value but not significantly. Problems
faced on the job tend to be somewhat
standardized with infrequent new problem
situations. Decisions are made from a number of
known alternatives, or unusual problems are
usually referred to someone else. Some choice of
independent action or judgement.
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Weighting
A weighting formula reflects the value of jobs.
The example below determines
how important each factor is to the
workplace

• Percentage Points
• SKILL 35 350
• EFFORT 20 200
• RESPONSIBILITY 35 350
• WORKING CONDITIONS 10
  100
• 100 1000

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Weighting- Example -

• Percentage Points
• SKILL 35 350
• Knowledge 15 150
• Problem-solving/judgement 12 120
• Interpersonal skills/ contacts 8
  80
• EFFORT 20 200
• Mental Effort 12 120
• Physical Effort 8 80

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Calculating Point Values of Levels
Example
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Interactive Tool

• There is an interactive worksheet on the website
  that will assist you in creating a weighting
  formula.
• Go to
• http//www.payequity.gov.on.ca/peo/english/pubs/to
  ols_formula.html

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Compare jobs in the following order
7. Compare Female Jobs to Male Jobs

• FIRST
• JobtoJob
• Direct comparisons between male and female job
  classes
• SECOND
• Proportional Value
• For female job classes, unmatched under the
  Job-to-Job method
• THIRD
• Proxy
• For female job classes public sector only
  matched or unmatched under Job-to-Job and PV
  (only for public sector employers who had
  employees on July 1/93)

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Search Sequence for Job-to-Job Comparisons

• Inside the plan, look for a male job class of
  equal or comparable value if more than one is
  available, choose the one with the lowest job
  rate.
• Outside the plan, look for a male job class of
  equal or comparable value if more than one is
  available, choose the one with the lowest job
  rate.
• No male job class of equal or comparable value,
  lookout throughout the establishment for male
  class that is lower value, but higher paid than
  female job class. If more than one is found, use
  the one with the highest job rate as the
  comparator.

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Example of Fixed Point BandsJob classes of
comparable value
(Fixed point bands of 75 points)
Comparator Comparator is lower value,
highest paid male job class
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8. Prepare / Post Job-to-Job Pay Equity Plan(s)
/ Make Adjustments
Pay Equity Plan(s) must include

• Name of employer, bargaining agent
• Definition of establishment
• List of female and male job classes
• Description of how the jobs were compared

• Results of comparisons
• List of permissible differences
• Adjustments required to female job classes
• Date of adjustments

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9. Use PV for Unmatched Jobs
Proportional Value (PV) is an indirect method of
comparing female and male job classes.

• Create a comparator line using male job rates and
  job values
• The proportional value line on the graph
  represents the relationship between value and job
  rate for Male Job Classes.
• Insert female job rates and values to see if they
  are at least on the comparator line if not,
  they must receive an adjustment to bring them up
  to the line.

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Plotting jobs to the graph
M
M
M
job rate /hr
F
F
job value (pts)
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Search order for Proportional Value

• Inside the pay equity plan.
• Throughout the establishment for a
  representative group of male job classes.

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Interactive Tool

• An interactive tool on the website that may
  assist you with the proportional value/regression
  analysis process.
• Go to
• http//www.payequity.gov.on.ca/peo/english/pubs/t
  ools_regress_pv.html

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10. Prepare and Post Proportional Value Plan and
Make Adjustments
Amended Pay Equity Plan(s) must include

• Name of employer, bargaining agent
• Definition of establishment
• List of female and male job classes
• Description of how the jobs were compared

• Results of comparisons
• List of permissible differences
• Adjustments required to female job classes
• Date of adjustments

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11. Use Proxy (public sector only)

• If any female job classes could not achieve pay
  equity with the Job-to-Job method, the employer
  shall use the Proportional Value method.
• If any female job classes could not achieve pay
  equity with the Job-to-Job or Proportional Value
  method, the employer must notify the Commission
  by submitting this form
• Notice of Inability to Achieve Pay Equity
• For public sector organizations, a Review Officer
  will issue an order to use the Proxy method.
• Once the organization is ordered to use Proxy and
  post a proxy plan, all female job classes in the
  establishment are required to use the Proxy
  method.

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Proxy Comparison Steps

• Identify your key female job classes.
• Select your proxy organization and request job
  
  
  
  
  information.
• Receive information (as of January 1994) from
  proxy employer within 60 days.
• Evaluate your own job classes.
• Determine value of proxy job classes and job rate
  of proxy job classes.
  
  
  
• Develop a proxy job rate line and compare your
  own job classes to the job rate line.
  
  
  
  
• Determine pay equity adjustments for your female
  job classes.
  
  
  
  
• Post your pay equity plan.
• Begin your pay equity adjustments.

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Proxy Comparison (Example)
30
Proxy Jobs
20
Job Rate
Seeking Jobs
Proxy Rate
10
0
200
600
300
400
500

• Female Job Classes of the seeking employer are
  compared to a representative group of Proxy Job
  Classes
• The proxy value line on the graph represents the
  relationship between value and job rate for Proxy
  Job Classes
• The job rate for every Female Job Class of the
  seeking employer must be at least on the proxy
  value line.

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Sample Results of Proxy Comparison
Proxy female job classes Job value P.E.
job rate as of Jan 1/94 Asst.
Supervisor 875 pts. 20.00 ECE
723 16.52 Asst. ECE 598 13.55
Seeking female job classes Job value Job rate
P.V. rate Adjustment Supervisor 856 pts.
15.60 19.58 3.98 ECE 724 13.00
16.50 3.50 Asst. ECE 595 12.25
13.50 1.25 Housekeeper 420 8.75
9.42 0.67
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Retroactive Adjustment Date

Employers using the proxy method of comparison
must complete their pay equity comparisons and
begin adjustments as of January 1, 1994.
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• Distributing Proxy Pay Equity Adjustments

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Pay out 1 of previous years payroll in
adjustments

• A minimum of 1 of the previous years payroll
  must be paid each year in adjustments (or, if
  less, the amount required to achieve pay equity).
• Adjustments began January 1st, 1994.
• Adjustments are applied each January 1st until
  pay equity is achieved for each female job class
  requiring an adjustment.

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The 1 of Payroll can not be used

• To give pay equity increases to male or gender
  neutral job classes
• To give non-pay equity increases
• (e.g. general wage increases)

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Allocating the 1 of Payroll

• The job class with the lowest job rate receives
  the greatest adjustment
• Each affected job class receives an adjustment
• All positions in a job class receive the same
  amount

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Pay Equity Increases
How pay equity adjustments are applied to female
job classes.
A new chart is completed for each year the P.E.
job rate in column E is brought forward to column
A of the next years chart.
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Tracking Adjustments and Non Pay Equity Increases
A new chart is completed for each year and the
P.E. job rate in column H is brought forward to
column B of the next years chart, G is brought
forward to A.
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Do Not Widen the Wage Gap
The Effect of a 5 Increase on Current and Target
Rates
Dollar adjustments do not have the same effect as
percentage increases.
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Pay Equity is Achieved Using Proxy

• When every female job class has reached their pay
  equity target rate.
• When the job rate for female job classes reaches
  the pay equity job rates as amended by other non
  pay equity adjustments.

For pay equity increases to count

• Shrink the wage gap until it disappears
• Adjust the job rate till the target is reached
• Add the 1 of payroll to your base
• Identify and label pay equity adjustments

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Prepare and Post the Pay Equity Plan(s) Make
Adjustments
Pay Equity Plan(s) must include

• Name of employer, bargaining agent
• Definition of establishment
• Identify your key female job classes
• Identify proxy employer establishment

• Identify proxy female classes to which your
  female classes were compared show p.e. job
  rates
• Describe comparison calculation methods
• Adjustments required to female job classes
• Date of adjustments

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Deemed Approved Process
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Deemed approved status does not insulate a plan
from a complaint

• If the plan is in violation of the Act
• Allegations of contraventions in deemed approved
  plans must be identified

Standards to determine contravention will be
Correctness or Reasonableness, depending on the
provision in question.
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Complaints and Objections

• Employees have the right and the responsibility
  to make their own decisions about pay equity.
• About
• the manner in which pay equity was done
• that pay equity was not done
• that pay equity is not being maintained
• that changes in the workplace are such that the
  the pay equity plans are no longer appropriate
• that the pay equity plan that affects an
  employees job does not comply with the Act
• that the pay equity plan was not carried out
  according to its terms
• that an employee has been fired, coerced,
  penalized or harassed because of pay equity.

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Employees Can Complain

• Individually
• As a group
• Represented by an agent

Complaint Process for Employees

• NB We recommend that complaints be first
  addressed with the Employer and Union where
  possible.
• The Pay Equity Commission, Review Services
• The Pay Equity Hearings Tribunal

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Review Services
A Review Officer will be assigned to investigate
each complaint.
The Review Officer can

• assist parties in arriving at a settlement
• write an order
• refer a matter to the Pay Equity Hearings
  Tribunal

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The Pay Equity Hearings Tribunal
If employees, an employer or a bargaining agent
objects to an order of a Review Officer, they can
request a hearing before the Pay Equity Hearings
Tribunal.
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MaintainingYour Pay EquityPlan
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Obligation to Maintain Pay Equity

• The onus is on the Employer to achieve and
  maintain compensation practices that provide for
  pay equity.
• (Subsection 7(1) of
  the Pay Equity Act)
• Bargaining Agents are prohibited from condoning
  an employers failure to maintain pay equity.
• (Subsection 7(2) of the Pay Equity
  Act,
• York Region Board of Education)
• Bargaining Agents have an on-going role in
  maintenance. Results of maintenance agreements
  are deemed to form part of the collective
  agreement.
• (Parry Sound District
  General Hospital)

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Maintaining Pay Equity. What does that mean?

• Monitoring changes that occur in the
  establishment for their pay equity implications,
  such as
• changes to jobs
• changes in union status or bargaining agent
• reorganization, restructuring, sale of a
  business, merger, amalgamation or acquisition.
  
  
  
  
• Where necessary, if the pay equity plan is no
  longer appropriate for the female job classes, an
  amended plan is prepared and posted.

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Choosing the Method of Comparison to Maintain Pay
Equity

• If only the Job-to-Job method was used, maintain
  using the same approach.
• If both the Job-to-Job and Proportional Value
  methods were used, maintain using both methods.
• If you use only Proportional Value to maintain
  pay equity, the advantages to the female job
  classes must be equal or greater than under the
  Job-to-Job method.
• If Proxy was used, maintain using that method.
• Continue using Proportional Value to maintain pay
  equity.

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Key Maintenance Areas

• Changed Circumstances
• Internal changes that impact on pay equity and
  deemed approved plans (Sec 14.1 14.2)
• Sale of Business
• External changes that impact on pay equity and
  deemed approved plans, such as a sale of
  business, merger, lease, transfer, acquisition or
  amalgamation (Sec 13.1(2))

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Changed Circumstances for Non-Union Employees

• if the employer is of the view that because of
  changed circumstances in the establishment the
  pay equity plan for the establishment is no
  longer appropriate, the employer may amend the
  plan and post in the workplace a copy of the
  amended plan with amendments clearly indicated.
• Sec. 14.2(1)

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Changed Circumstances and Bargaining Units

• If, the employer or the bargaining agent is of
  the view that because of changed circumstances in
  the establishment the pay equity plan for the
  bargaining unit is no longer appropriate, the
  employer or the bargaining agent, as the case may
  be, may by giving written notice, require the
  other to enter into negotiations concerning the
  amendment of the plan.
• Sec. 14.1(1)

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Changed Circumstances and Bargaining Units

• (continued)
• If the employer and the bargaining agent do not
  agree on an amendment before the expiry of 120
  days from the date on which the notice to enter
  into negotiations is given, the employer shall
  give notice of the failure to the Commission.
• 
  Sec. 14.1(3)
• Subsection (3) does not prevent the bargaining
  agent from notifying the Commission of a failure
  to agree on an amendment by the date referred to
  
• Sec. 14.1(4)

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Examples of Changed Circumstances, Making the
Plan no Longer Appropriate

• Issues pertaining to job classes
• New job classes
• Vanishing job classes
• Changes to the value of job classes
• Certification of a bargaining agent after a
  deemed-approved plan
• Restructuring within the organization

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What Would Constitute a New Job Class?

• Creation of an entirely new job class in the
  establishment
• Significant changes to an existing job class

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If You Have A New Job Class

• Determine if this is a brand new job class, or an
  existing job class changed so significantly that
  it has become a new job class.
• Determine the gender of this new job class.
• Evaluate using your job evaluation system.
• If the new job class is female, use Job-to-Job,
  then Proportional Value, if needed.
• If the new job class is male, is this a new male
  comparator, or does this job fit in your
  representative male job group if so, does this
  change your Proportional Value job rate line?
• Important If youre using Proxy, any new job
  class must immediately go to the proxy rate. If
  this is a new position that can be placed into an
  existing job class or group of job classes, then
  this new position will achieve pay equity at the
  same rate as the other positions already
  progressing towards pay equity.

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Vanishing Job Classes

• Male jobs
• Find new male job comparator
• Use male job class increases to maintain
• Does this change the comparator line
• Female jobs
• Ensure that all employees within the vanishing
  job class are paid any adjustments owed to them.

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Changes to the Value of a Job Class

• Changes to the skill, effort, responsibility and
  working conditions of a job class can be
  sufficient to alter its value.
• If jobs change, re-evaluate them using the same
  evaluation system.
• Minor changes may have no impact. But more
  significant changes can affect the value of a job
  class, its comparator, its job rate and the pay
  equity plan.

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Changes to Job Rates
Increases to male job rates (includes changes to
benefits) could impact on female job
classes. Mirror the change to the affected
female job class or it may reopen the wage gap.

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Sale of Business Includes

• Sale
• Lease
• Transfer
• Merger
• Acquisition
• Amalgamation

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Sale of a Business Responsibilities

• The purchaser assumes responsibility for
  implementing and maintaining pay equity
  obligations
• The purchaser is liable for any outstanding pay
  equity obligations of the seller (unless
  stipulated by a merger agreement)
• If the sellers or the purchasers plan is no
  longer appropriate, employers must redo or
  negotiate a new plan

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Sale of Business (example)

• A (predecessors)
• non-union
• union
• did pay equity

• B
• 20 employees, all
• non-union
• did not do pay equity

• C (successor)
• assumes liability for obligations of B
• 1 plan for all non-union in AB
• non-union plan is no longer appropriate
• 1 union plan
• union plan may still be appropriate

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Restructuring or Reorganization

• Consider
• Who is the employer?
• Are there pay equity plans in place?
• Are there unions?
• What comparison methods were used?

• Anomalies in restructuring can occur when same or
  similar job classes are valued
• Under different comparison systems
• Valued differently under the same system
• Have different male comparators
• Are represented by different unions, or not
  represented
• Organizations with plans merge with organizations
  without plans.

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Preparing a New Plan After a Sale of Business

• Requires a new plan be negotiated/prepared and
  posted
• Previous plans continue to be implemented until
  the purchaser develops a new plan, if necessary
• A new gender neutral comparison system may be
  required
• Adjustments in the new plan may be different from
  the original pay equity plan
• Employers may be required to justify lower rates
  on a new plan
• Necessary adjustments are retroactive to the date
  the sale occurred no phasing-in of rates is
  allowed
• There is no deadline for preparing a plan after a
  sale of business, but employees could complain to
  the Commission a Review Officer would be
  assigned to investigate

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Preparing / Negotiating New Plans for a
Bargaining Unit
After a sale of business, merger or amalgamation,
you may want to wait to serve notice to negotiate
pay equity until

• The bargaining unit configurations are decided
• Job classes are known
• Duties and responsibilities are established

You can then make an informed decision whether or
not the respective Pay Equity plans are
appropriate.
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preparing / negotiating
Find out as much as you can about the status of
pay equity in the predecessor organizations

• Who was responsible for pay equity, for both the
  employer and the union
• What gender neutral comparison system did they
  use
• What worked well, what did not
• Get copies of the pay equity plans
• Were the plans posted, implemented and maintained
• Are there unresolved complaints or objections

Good information can help you structure a useful
bargaining framework and make the process easier.
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For Proxy Plans

• Determine the employer establishment
• Determine job classes and evaluate them
• Do Proxy comparisons based on information of
  Jan/94
• You never return to your proxy employer for
  information
• Prepare and post new/amended pay equity plans
• Deemed approved process applies

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Think about this

• Are you monitoring changes that impact on pay
  equity? How?
• Are your employees aware of the maintenance
  process?
• Is/are your plan(s) still appropriate for the
  female job classes?
• Has your pay equity plan been amended for changed
  circumstances?
• Has a new pay equity plan been created after your
  sale of business?
• Was the deemed approved process observed after a
  pay equity plan was amended or a new plan created?

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• Leave me your business card with your e-mail
  address if you want to be notified of website
  updates and upcoming seminars.

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Free Help Is Available

• General information and after hours automated
  line
• 1-800-387-8813 (anytime)
• Email for general information,
  pecinfo_at_mol.gov.on.ca
• Website www.payequity.ontario.ca
• Free seminars and teleconference training
  information and registration pecseminars_at_mol.gov.
  on.ca
• Speaker for womens groups, associations, large
  employer/employee/union groups
• Order publications or CD to help you understand
  and/or do pay equity.