Pay equity is going to get a lot of attention this year.
Politicians and courtrooms across Canada are rolling
out legislation and judgments focused on wage
discrimination.
The recent pay disclosure report in the United
Kingdom revealed how much disparity exists in
leading internationally-active Canadian companies.
With the topic of pay equity making headlines once
again, will Alberta's government choose one more
platform before the next election?
Six Canadian provinces have enacted pay equity
legislation, with another three provinces mandating
frameworks for pay equity negotiation frameworks
for public employees.
Alberta is the sole province without either. Much of
this legislation isn't new, either.
Ontario recognized the 30th anniversary of its Pay
Equity Act by introducing new initiatives around
enforcement of the Act late last spring.
The Supreme Court of Canada is working on the file
as well, with two cases currently before the Court
to address disputes related to Quebec's pay equity
laws.
Pay equity was a central theme to the 2018 federal
budget, too. In announcing their intent to introduce
pay equity legislation for federally regulated sectors,
the Government of Canada weighed in on the issue.
The proposed legislation will affect over 1.2 million
employees in the Federal Public Service.
So what do you need to know if legislation is
forthcoming from Edmonton? First, expect a
different timeline than last year's changes to Alberta's
Employment Standards Code.
While the changes were the broadest update to the
Code in two generations, introducing a Pay Equity
Act would be an entirely new initiative.
Even if the Alberta Government used another
province's act as a model, consultations and other
engagement would likely push the introduction of
new legislation late into the fall.
Implementation would likely require enforcement
and hearings mechanisms, so more time would be
required to set these areas up. In short, this needs to
move slowly.
Second, you'll need to look at job classes. This
means that legislation will look at the duties and
responsibilities of a job, not just the job titles, when
comparing salaries.
Parts of the legislation will define what threshold
exists for a class to be defined as a 'male job class'
(currently 70% or more of the employees in that role
are male for Ontario), and a 'female job class'.
The legislation would need to define the processes
to compare male and female job classes, too.
Pay equity legislation is unlikely to be enacted in
Alberta before the next election. However, risks to
your company through civil lawsuits, decreased
morale, recruitment challenges and more, provide
good reason to evaluate your organization's
salary structure. Speak to a CPHR designated HR
professional to learn more.
Dan Boucher is CPHR Alberta's Director of Research
and Regulatory Affairs, where he leads a member-
focused team dedicated to strengthening HR
professional standards. www.cphrab.ca/research
Is pay equity legislation coming to Alberta?
Dan Boucher, Director of Research, CPHR Alberta
RISKS TO YOUR COMPANY THROUGH
CIVIL LAWSUITS, DECREASED MORALE,
RECRUITMENT CHALLENGES AND MORE
PROVIDE GOOD REASON TO EVALUATE YOUR
ORGANIZATION'S SALARY STRUCTURE.
