Canadian HR Reporter

Private sector Private sector less appealing to women, minorities f e at U R e s COMPENSATION f e at U R e s COMPENSATION f e at U R e s Public sector better at narrowing pay gaps, also has strong anti-discrimination policies in place By Kate McInturff t he size of someone's pay- cheque should not be de- termined by his gender or race — yet incomes continue to vary for exactly those reasons, and the gaps are bigger in the private sector than they are in the public sector. As a result, the employees most likely to see discrimination in their wages may opt out of the private sector and seek out public sector jobs. An attractive package of non-wage benefi ts is not the only reason women, Aboriginal and visible minority workers are choosing public sector jobs — the public sector also has policies in place that contribute to a less discriminatory system of pay for those workers. e biggest wage gap exists for Aboriginal workers. In the private sector, an Aboriginal worker with a university degree (working full- time) will make 44 per cent less than his non-Aboriginal peers. In the public sector, that same university-educated Aboriginal worker sees his wage gap shrink to 14 per cent, according to a study by the Canadian Centre for Policy Alternatives, which used data from Statistics Canada's 2011 National Household Survey. e same is true for visible mi- nority workers and women. Uni- versity-educated women make 27 per cent less than men in the private sector, and university-ed- ucated visible minority workers make 20 per cent less than their non-visible minority counter- parts, found the study. e public sector sees most of these wage gaps cut in half. For ex- ample, in the public sector, those same university-educated work- ers see their wage gaps shrink to 12 per cent for visible minor- ity workers and 18 per cent for women, found the study. ese are still signifi cant gaps, but the public sector provides important insights into which measures are most likely to see workers earning a paycheque that refl ects their ex- perience and ability, and not their sex or race. ere are several factors that appear to contribute to the lower levels of wage discrimination in the public sector. Unionization and access to collective bargaining are strongly correlated with a re- duction in wage inequality. Access to benefi ts such as paid parental leave, family leave and sick leave also reduce the gender wage gap by addressing the double burden of unpaid care work borne by fe- male workers. Finally, pay equity legislation has an evident impact on reducing discrimination and inequality. None of these elements are ex- clusive to the public sector. e more equitable system of pay found in the public sector can be reproduced in the private sector. e fi rst step is asking the right questions. Wage gaps can't be ad- dressed if no one knows they exist. Tracking rates of pay and compar- ing, for example, the wages of men and women with the same qualifi - cations is a fi rst step to identifying if and where a gap exists. Wage-setting institutions, in- cluding collective bargaining, have also made a signifi cant dif- ference both in Canada and across countries in the OECD (Organisa- tion for Economic Co-operation and Development) in narrowing the pay gap. is is particularly important at the lowest end of the pay scale. Ensuring that women working for low wages see the same steady in- crease in their wages as men nar- rows the gap where it makes the biggest diff erence. Access to benefi ts such as paid parental leave, family leave and sick leave also reduce the gender wage gap by addressing unpaid care work often borne by female workers. Women across the eco- nomic and educational spectrum experience a long-term lag in their earnings after having chil- dren. e so-called "motherhood penalty" means women in Canada will see an estimated eight per cent decrease in their earnings, even when diff erences in age, employ- ment level (part-time or full-time) and education are accounted for, according to a 2012 study in Social Politics. Coupled with the high cost of childcare, this can mean experienced female workers leave the workforce because they can't aff ord to stay. Tracking wages, supporting wage-setting institutions and ad- dressing work-life balance can make a real diff erence in reduc- ing discrimination. ese poli- cies also make a diff erence for employers. ey increase the pool of qualifi ed candidates and ensure a bigger, more diverse and more fl exible labour force. Consider the fact that men and women in Canada tend to work in diff erent industries and hold diff erent jobs within the sectors where they work. Women are far more likely to work in education, health and social services, while men are more likely to work in finance, engineering and tech- nology, found the CCPA study. e result is that the more highly segregated sectors of the economy have a less fl exible workforce — the fi eld of potential employees is cut in half. The arguments in favour of bringing public sector practices into the private sector are well- rehearsed. It's time to consider what the private sector has to learn from the public. Kate McInturff is a senior researcher at the Ottawa-based Canadian Cen- tre for Policy Alternatives (CCPA) and director of its initiative on gender equality and public policy, Making Women Count. Follow her on Twit- ter: @katemcinturff . is article is adapted from the study Narrowing the Gap: e Diff erence that Public Sector Wages Make, co-authored by Paul Tulloch and Kate McInturff . It is available at policyalternatives.ca None of these elements are exclusive to the public sector. The more equitable system of pay that is found in the public sector can be reproduced. A worker cleans the Senate chamber on Parliament Hill in Ottawa. The public sector is a more attractive workplace for women and minorities for many reasons, including pay and better anti-discrimination practices. Credit: Chris Wattie (Reuters)

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