INDIVIDUAL ASSIGNMENT 1 40 MARKS 20% OF THE OVERALL GRADE FOR THE COURSE

PAY EQUITY

You are aware from reading the Wilson Bros Case Scenario that the company has operations in the
Province of Ontario. As a result Pay Equity will be a major component of your strategy going forward,
in particular for the employees in Ontario.

1-Explain the notion of Equal Pay for Equal Work. What legislation contains this notion? (5 Marks)

Ans: Equal Pay for Equal Work - Section 42 of the Employment Standards Act (Ontario) makes it
illegal to pay employees of one sex less money for doing the same work as employees of the other sex:
No employer shall pay an employee of one sex at a rate of pay less than the rate paid to an employee
of the other sex when:

a. They perform substantially the same kind of work in the same establishment
b. Their performance requires substantially the same skill, effort and responsibility
c. Their work is performed under similar conditions

(Filsinger, pg. 211) There can be exceptions in this pay only if based on seniority,
merit, or productivity or any other factor unrelated to sex, such as a premium paid for
working night shifts. (Filsinger, pg. 211)

2-Explain the notion of Equal Pay for Work of Equal Value. What legislation contains this notion? (5
Marks)

Ans: Equal Pay for Work of Equal Value was established under the Pay Equity Act. This a relatively
recent concept which means that employers should compare totally different jobs and ascertain
whether they are equal in value (Filsinger, Pg 213). The law in Ontario takes this concept further by
placing a positive obligation on employers (both public and private sector with over 10 employees) to
proactively take certain measures to achieve pay equity. This applies to all employees - full-time, part-
time or seasonal. This is a more proactive, timely, fair, and collaborative approach to addressing pay
equity issues in the federal public sector.

3-How would you implement Equal Pay for Work of Equal Value in the Ontario based operations of
Wilson Brothers? Does it make sense to extend this notion to operations outside Ontario? If so, why? (5
Marks)

Ans: I would implement Equal Pay for Work of Equal Value in the Ontario-based operations by:

a. Classifying existing jobs (gender, job rate of classes, etc.)

b. Valuing these job classifications based on skill levels, effort, responsibilities and working
conditions
c. Comparing male and female job classes by implementing one of the following:
i. proportional value/wage line method, job-to-job method, or proxy comparison method
ii. Figure out where compensation adjustments are needed due to inconsistencies in
compensation within male and female job classes of equal value
d. Create a pay equity plan that explains how the differences in compensation will be fixed
 e. Make compensation adjustments close to legislative limits

Extending this process outside Ontario definitely makes sense. Ontario’s pay equity law uses a
comprehensive model that has been recognized internationally as extremely effective in restoring gaps
in wages, by incorporating bargaining, adjudication and enforcement mechanisms to reach an effective
pay equity result. Utilizing this proactive model to bring together HR process planning and enforcement
of a human rights approach will give unions and employers a chance to work together to achieve pay
equity across the organization.

4-What are the legislative requirements in Ontario for you to adjust wages and salaries for female
versus male-dominated jobs in the organization? (5 Marks)

Ans: Some legislative requirements that need to be kept in mind while working towards adjusting
wages and salaries for female vs male-dominated jobs are by using the guidelines set in the Pay Equity
Act:

a. Identify
○ the unit for which the pay equity plan will be developed.
○ Identify job classes with similar duties and responsibilities.
○ Identify male and female job classes.
b. Assess the value of jobs using a gender-neutral (free of gender bias) job evaluation system
based on the criteria of –
○ Skill, including intellectual and physical qualifications acquired by experience, training,
education, or natural ability, but not considering the methods by which skills are
acquired
○ Effort, including both physical and intellectual effort
○ Responsibility, for technical, financial, and human resources, and
○ Working conditions, including both the physical and the psychological conditions, such
as noise, temperature, isolation, physical danger, health hazards, and stress
c. Compare male and female job classes using one of the following (varies by jurisdiction):
○ The job-to-job method, in which each female job class is compared to each male job
class of equal or comparable value
○ The proportional value/wage line method, for female job classes with no appropriate
male comparators under the job-to-job system, in which the wage line for male job
classes is applied when setting pay for female classes (see Exhibit 12.3)
○ The proxy comparison method, when pay equity cannot be achieved through job-to-job
or proportional value methods, in which female job classes are compared to similar
female job classes that have achieved pay equity with another employer; this method
has been quite controversial
d. Identify where compensation adjustments are required due to disparities in compensation
between male and female job classes of equal value.
e. Develop a pay equity plan that sets out how identified differences in compensation will be
remedied, containing –
○ A description of the unit for which the pay equity plan has been developed
○ An identification of all the job classes that formed the basis of comparisons, including
which were female and which were male
 ○ A description of the gender-neutral job evaluation system used
○ Where more than one method of comparison was permissible, the method of
comparison used for each job class
○ The results of the comparisons
○ An identification of those job classes for which permissible differences in compensation
existed
f. For those job classes for which differences in compensation exist which are not permissible, a
description of how the compensation will be adjusted to achieve pay equity, and a schedule of
the payout of compensation adjustments
g. Make compensation adjustments, up to limits prescribed in the legislation

5-Write a short Executive Summary regarding your recommendations for Pay Equity implementation at
Wilson Brothers to both Bob and John Wilson and the rest of the Executive Team. Use point form,
highlight key points, and use visual aids such as charts and/or graphs in your Summary Document. (20
Marks)

EXECUTIVE SUMMARY:

Below are the recommended actions to ensure Pay Equity at Wilson Bros.

1. Development of Pay Equity committee - including key members to represent all employees -
execs, senior managers, managers, employees and reps to jointly work towards the creation of
a Pay Equity Plan
2. Job Analysis - Decide and calculate the value of a job, keeping in mind Pay equity
3. Creation and Implementation of Pay Equity Plan -
a. Review existing compensation policies and practices
b. Identify existing wage rate for each role and plot pay lines
c. If a female job class is of equal or comparable value as a highly paid male job class,
increase it to match (atleast) the male job class wage rate
d. If the female job class cannot be compared directly, the Indirect comparison method is
to be used to identify of pay equity exists
e. Compare the proportional value by plotting the wage line for male wage rates.
Replicate for female wages, and correct disparity by raising till equal.
f. At no point can wages be reduced or decreased to achieve pay equity
g. Female job classes which have been proven to be paid lesser than male job classes of
equal or comparable value will receive a wage adjustment
h. Fix a timeline to implement this Pay Equity Plan - create a schedule, share with
employees and stick to it (without delays)
4. Maintain and review policy Annually - ensure that the corrections made are not a single
occurrence, but that care is taken to ensure Pay equity is maintained year on year by assessing
the policy, identifying and closing pay gaps immediately.

An example of a male and female job class plotline (by age) can be seen below. The wage gap has
been clearly shown, and this Pay Equity Plan should ensure that the gap is minimal or does not exist at
all (ideal scenario)
References:

Steps to Pay Equity - Govt. of Canada

https://www.google.com/url?sa=i&url=https%3A%2F%2Fwww.canada.ca%2Fen%2Femployment-social-
development%2Fprograms%2Fpay-equity
%2Fsteps.html&psig=AOvVaw1zHNsI7REFbihWlJzDaVr2&ust=1595115129783000&source=images&cd=vfe
&ved=0CAIQjRxqFwoTCLDrtIm51eoCFQAAAAAdAAAAABAH