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Equal pay policies: International review of selected developing and developed countries

by Paula Määttä

III. Canada

E. The role of the social partners

1. Collective bargaining and the pay equity process

In Canada, there are differences among provinces in the relationship between collective bargaining and the pay equity process. Manitoba, Nova Scotia and Prince Edward Island have adopted a similar approach to collective bargaining in relation to the pay equity process. Each Pay Equity Act has the bargaining agents represent the members as in normal collective bargaining. The legislation also requirethat "employee representatives" for pay equity matters be selected by employees who are not unionised. The employee representatives and the union negotiators bargain over pay equity with the employer, but the employee representatives usually do not have the same status as the union negotiators. According to the legislation, the different parties must bargain in good faith to reach agreement respecting the implementation of pay equity.

The significant item that is the subject of the bargaining process in these three statutes is the single gender-neutral job evaluation plan. Employees of each employer are evaluated under the same job evaluation plan, and those in female job classes are entitled to wage adjustments established by comparison with male job classes within the single plan.

Ontario follows a different approach, whereby every bargaining unit negotiates a separate job evaluation plan. This makes comparisons across the establishment quite difficult. Moreover, the Pay Equity Act of Ontario does not have a provision for "employee representatives" for non-unionised workers. Unorganised employees do not take part in the bargaining process. Only unions and employers are entitled to participate in the bargaining process relating to pay equity. When the employer has a pay equity plan, it must also be used by non-unionised employees, who have a right to complain about the plan once it is in place. (McDermott 1993, p. 58.)

The Prince Edward Island and Nova Scotia legislation stipulate that pay equity negotiations must occur separately from the normal negotiations, while the statutes in Manitoba and Ontario do not impose such a requirement. Thus, in the latter provinces, pay equity negotiations and bargaining for a new collective agreement could take place together.

The Prince Edward Island and Ontario legislation include provisions which state that pay equity agreements are to prevail over the provisions of all relevant collective agreements, and that the wage adjustments required by agreements are to be deemed as incorporated into, and thus form part of, the relevant collective agreement. The Nova Scotia legislation contains a similar provision, which states that a pay equity agreement "prevails over the provisions of other agreements with respect to pay". In Ontario, there is a statutory mechanism to ensure that pay equity adjustments are not lost during collective agreement negotiations until such time as pay equity is achieved. Once pay equity is achieved, the parties have a continuing obligation under the Equal Pay Act to maintain pay equity, and not to bargain for or agree to compensation practices which would violate this obligation. (CCH Canadian Limited 1995, p. 436.)

2. Women's departments and tools for reducing the wage gap

Many Canadian trade unions have women's departments that are concerned with the obstacles encountered by women in obtaining equal treatment in trade union affairs. They organize special women's conferences and meetings for women trade unionists. These departments have attempted to incorporate demands for equality into collective bargaining and agreements. (ILO, 19-23 Nov 1990, p. 74.)

The trade union movement in Canada has used a variety of collective bargaining tools to reduce the wage gap; these include joint job evaluation programmes with employers, pay equity fund clauses, equalisation of entry level rates, increment steps for female and male work and extra increases for lower-paid workers. (ILO, 19-23 Nov 1990, p. 77.)


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Updated by BC. Approved by MR. Last update: 10 August 2000.