Pay Equity. A guide for OSSTF/FEESO Bargaining Units

Transcription

1 Pay Equity A guide for OSSTF/FEESO Bargaining Units

2 Printed July 2014

3 Table ofcontents 05 The What, Why and How of Pay Equity 07 Pay Equity Factors and Subfactors 08 Subfactors A Summary 10 Roles and Responsibilities 11 Steps in the process for Achieving a Pay Equity Plan 16 Achieving a Pay Equity Plan Checklist for Bargaining Unit Presidents 17 Steps in the process for Pay Equity Maintenance 19 Pay Equity Maintenance Checklist for Bargaining Unit Presidents 20 Duties and Functions of Pay Equity Committees 23 Documents Used in the Pay Equity Process 27 How to Prepare for Post Plan Issues 30 Common Pay Equity Questions 38 Glossary of Pay Equity Terms and Phrases

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5 The What, Why and How of Pay Equity What is Pay Equity? The Pay Equity Act is intended to address the wage gap in earnings between work traditionally performed by women and work traditionally performed by men. * Pay equity IS equal pay for work of equal value. * Pay equity is NOT a guaranteed pay increase. * Pay equity is NOT equal pay for equal work. * Pay equity is NOT internal equity. It does NOT compare all job classes to each other. * Pay equity is NOT performance appraisal. It does NOT take into consideration how well individuals perform their duties. The Pay Equity Act identifies Skill, Effort, Responsibility and Working Conditions as factors of the work done by both men and women. These factors are legislated and are mandatory for evaluating jobs. The evaluation is based on the extent to which they exist within the jobs. Pay equity recognizes only the actual requirements of the job as described in the job data provided by incumbents in each job class. What is a female job class? Predominance of gender in a job class is determined by counting the number of females and males within the job class: if 60 per cent of a job class is female, it is considered a female job class if 70 per cent is male, it is considered a male job class if neither threshold is met, it is considered a gender neutral job class. BEFORE agreeing with the Employer on gender predominance of a job class, the following statistics are considered: current incumbency (female/male members) in a job historical incumbency stereotypical incumbency (the typical gender predominance of a job). 5

6 Why do Pay Equity? Pay equity legislation was enacted in 1988 to identify and eliminate gender discrimination in compensation practices. The Employer and Union are responsible for negotiating a Pay Equity Plan using a Gender Neutral Comparison System which measures Skill, Effort, Responsibility and Working Conditions. How is Pay Equity achieved? Pay equity is achieved by conducting job evaluation, which is a process designed to assess the Skill, Effort, Responsibility and Working Conditions of a job class. Male and female jobs within the organization are evaluated using the same system or tool. Job evaluation determines the relative relationship of one job to others within the organization. Once pay equity has been achieved, ongoing maintenance of the Pay Equity Plan is required to ensure that no gap in compensation occurs between comparable male and female job classes. Jobs new to the Bargaining Unit since the original collection of job data are evaluated during the Maintenance phase. During Maintenance consideration is given to the impact of any changes to job duties and gender dominance, and identification of new comparators where appropriate. New pay equity adjustments may be negotiated at this time. 6

7 Pay Equity Factors and OSSTF/FEESO Subfactors: SKILL Education Job-Related Experience Applied Reasoning and Analytical Skills Interpersonal Skills Equipment Skills Dexterity EFFORT Work Pressure Physical Demands Mental Demands RESPONSIBILITY Responsibility for Resources Responsibility for Others (Planning, Coordination, and Decision Making) WORKING CONDITIONS Physical and Social Environment Health and Safety 7

8 Subfactors A Summary Education measures the current minimum educational requirements to start in the job, as if the Employer were hiring someone today. Job Related Experience measures the time needed for a person with the required formal education to acquire the necessary practical experience to perform the job satisfactorily. may be a combination of previous experience in one or more jobs prior to being hired into the position plus a period of on the job training and/or a period of learning after starting in the job. Applied Reasoning And Analytical Skills measures the requirement to understand, collect, interpret and analyze different kinds of information and to solve problems. measures the range and complexity of skills relating to the application of information and the degree of problem solving required to start in the job. Interpersonal Skills measures the requirement for interactions with other people and the type of communication skills required. measures the need to interact in the public sphere, conveying a public face or point of contact to those outside the organization. Equipment Skills measures expertise required in operating equipment in the job (from routine use to troubleshooting and fabrication). Dexterity identifies the physical skill and the need for co-ordination, accuracy and/or speed to perform tasks. it does not measure the actual effort involved in using those skills. Work Pressure measures the extent to which an individual has control over how, in what order and when work is done. this is not to be confused with work load, which is a contract issue and not addressed in pay equity. 8

9 Physical Demand measures the physical effort and how often that effort is required in the job. it is not a function of personal choice or the employee s physical ability, but is intrinsic to the job. Mental Demand measures the attention to detail and the intensity of concentration required to do job tasks to ensure accuracy includes the focused use of senses to collect information Responsibility For Resources recognizes the extent of decision-making and accountability. resources range from finances to hardware, facilities, equipment, data and confidentiality of information. the type and magnitude of responsibility is evaluated. Responsibility For Others recognizes the extent of decision-making and accountability for the performance, well-being, health and safety of others in the workplace (including staff and students). includes responsibility for coordinating, planning of tasks, implementing programs, training, counseling, supervising, disciplining, etc. decisions may be made in consultation with others inside or outside the organization. Physical and Social Environment measures risk of exposure to disagreeable elements, both physical and social, which normally prevail in the job. elements are identified as well as the degree to which they are disagreeable. Health And Safety measures the degree and frequency of risks to health or safety. assumes that all safety procedures are being followed and appropriate safety and/or protective equipment has been provided and is being used. 9

10 Roles and Responsibilities Role of Bargaining Unit President The Bargaining Unit President is the local face of pay equity. The President acts as the communication link with the members, local executive, Employer, assigned Secretariat, and Provincial Executive. The President is the co-facilitator of the pay equity process, is a member of the Joint Steering Committee and co-chairs the Joint Job Evaluation Committee. Role of Secretariat Pay Equity Liaison Each Bargaining Unit has a Secretariat member assigned for assistance and consultation throughout the pay equity process. This Provincial Office staff person is a member of the Joint Steering Committee who assists with training, production of reports and documents, negotiation of terms of reference, initial Pay Equity Plans and Addenda. The Secretariat member assigned must be advised before the Pay Equity Commission is contacted regarding any impasse in pay equity negotiations or any contravention of the Pay Equity Plan or the Pay Equity Act. Secretariat involvement is required for any complaints filed with the Pay Equity Commission or requests for legal assistance or Provincial Responsibility for Pay Equity Negotiations. Role of the Provincial Executive The Provincial Executive receives information from Secretariat and the Provincial Pay Equity Work Group and provides reports to Provincial Council on the progress of pay equity negotiations. The Provincial Executive approves requests for Provincial Responsibility for Pay Equity Negotiations and attends subsequent Joint Steering Committee meetings as required. 10

11 Steps in the process for Achieving a Pay Equity Plan: 1. Bargaining Unit Executive: discusses current status of Pay Equity outlines process identifies requirements of Bargaining Unit volunteers sets date for information meeting with general membership informs Secretariat of meeting outcomes 2. Bargaining Unit Executive meets with general membership to: provide information: the what, how and why of Pay Equity explain roles of Bargaining Unit and Employer and the need for volunteers from Bargaining Unit discuss anticipated length of time for completion dispel myths and highlight possible outcomes 3. Bargaining Unit President sends out call for volunteers for: Joint Steering Committee (JSC): Bargaining Unit President, Secretariat Pay Equity Liaison, and one other member Joint Job Evaluation Committee (JJEC): usually three representatives and an alternate Job class representatives for completion of Questionnaire: usually three incumbents per job class 4. Bargaining Unit Executive selects representatives who will be involved based on the following criteria: confidentiality and integrity assertiveness co-operation and working in team environment representation from various job classes knowledge of job classes within the organization 5. Bargaining Unit President communicates with Employer: sends Letter of Intent to Employer arranges initial discussions with Employer, set a date for initial Joint Steering Committee meeting sends pay equity documents to Employer for review by Joint Steering Committee 11

12 6. Joint Steering Committee meets. This Committee: develops Terms of Reference or ground rules to be used throughout the process agrees to: documents to be used date of retroactivity of the Pay Equity Plan gender predominance of Bargaining Unit positions potential male comparators to be used number of incumbents (current job holders) who will complete Questionnaires. Bargaining Unit selects the incumbents date for Questionnaire training and completion parameters to ensure confidentiality 7. Data Collection: Job Analysis Questionnaire is completed during working hours, one full day in duration includes all Bargaining Unit positions and may also include potential male comparators from outside the Bargaining Unit but within the organization (as determined by Joint Steering Committee) training session to assist incumbents with completion of Questionnaire using current, accurate, bias-free job data usually one Questionnaire completed per job class (may be a co-ordinated effort in cases of large job class) to provide current, accurate, bias-free snapshot of position once the Questionnaire is completed, it is reviewed with members of individual job classes to confirm accuracy, at an after-hours meeting 8. Supervisors/Managers review all Questionnaires for accuracy: comments are often provided on a separate form. The Employer selects the Supervisors/Managers 9. Representative from Bargaining Unit and Employer Joint Steering Committee (Co-facilitators): review Supervisor/Manager comments interview Supervisor or incumbents and/or request assistance from Secretariat and Employer representative when necessary to resolve minor variances and to identify matters of dispute agree to any amendments to job data or refer to Joint Steering Committee 12

13 10. Joint Job Evaluation Committee meets: the Joint Steering and Joint Job Evaluation Committees are trained by Secretariat Pay Equity Liaison and Employer representative (usually takes half a day) a sample position is evaluated; Joint Steering Committee leaves each position is evaluated using Questionnaire and rating tool, considering Skills, Effort, Responsibility and Working Conditions individuals who hold a position, or Supervisors/Managers of a position are replaced by alternates during the evaluation and discussion of those jobs to avoid any possible conflict of interest Factor Ladder Report reviewed (sore-thumbing). Once all jobs are evaluated, each subfactor is reviewed considering the ratings that have been agreed to. Should any jobs seem out of order under the subfactor, the Joint Job Evaluation Committee reviews its rationale record to ensure that fair and consistent consideration was applied to all jobs Rank Order Report reviewed. Following the sore-thumbing process, the Secretariat will apply weights to the ratings and will produce a Rank Order Report. The Joint Job Evaluation Committee reviews the results of all ratings and further confirms the evaluation of all jobs. In order to preserve the integrity of the process, the resulting point totals are not shared with the Joint Job Evaluation Committee or any others outside of the Joint Steering Committee. 11. Joint Steering Committee meets to: review the Rank Order Report: questions or comments for reconsideration are referred back to Joint Job Evaluation Committee. This may involve more than one meeting and subsequent review of any resulting changes to the Rank Order Report banding of positions: once the Rank Order Report is confirmed by the Joint Job Evaluation Committee, the Joint Steering Committee negotiates an appropriate banding or grouping of jobs according to the total points, consistent with the guidelines of the Pay Equity Act determine job rates (wages plus benefits and premiums/ allowances) for each job class 13

14 determine male comparators for each job class using job-tojob or proportional value methods: within a band, if there is only one male job, it becomes the male comparator for the female job classes if there is more than one male job within a band, the male job with the lowest job rate is the appropriate male comparator if there are no male jobs in the band, a higher paid male job in a lower band is the male comparator if no male comparator is identified using the job to job method, then a proportional value will be calculated negotiate Pay Equity Plan, approving rates and timelines for adjustments determine maintenance procedures (See pages 17 18). 12. Bargaining Unit Executive meets to review plan. 13. Bargaining Unit Executive convenes a general membership meeting to review outcome of Pay Equity Plan. Employer representatives may attend. Members are encouraged to attend in order to receive information and explanation of the Pay Equity Plan. A complete question and answer period follows the information session. Note: the Pay Equity Plan has been agreed to and this is not a ratification meeting. 14. Pay Equity Plan is posted. 14

15 A Provincial Office Secretariat member is available for assistance at any step in the process. 15

16 Achieving a Pay Equity Plan Checklist for Bargaining Unit Presidents District #: BU Name: BU President: STEPS 1. Bargaining Unit President and Executive meet DATE COMPLETED 2. Information meeting with membership 3. Send out call for Bargaining Unit volunteers to participate in the process 4. Bargaining Unit Executive selects representatives to serve on committees and to complete JAQs 5. Bargaining Unit President communicates with Employer 6. Joint Steering Committee meets to develop Terms of Reference 7. Questionnaires are completed 8. Supervisors/Managers review Questionnaires 9. Co-facilitators meet to review Supervisor comments 10. Joint Steering Committee and Joint Job Evaluation Committee training. Evaluations completed 11. Joint Steering Committee reviews results of evaluations, negotiates and signs Pay Equity Plan 12. Bargaining Unit Executive meets to review Pay Equity Plan 13. Bargaining Unit General Membership meeting to review outcome of Pay Equity Plan 14. Pay Equity Plan is posted 16

17 Steps in the process for Pay Equity Maintenance NOTE: Maintenance is best achieved with a joint process between the Parties; however, the Pay Equity Act does not require participation by the Bargaining Unit. If the Bargaining Unit is excluded, contact Secretariat. 1. Bargaining Unit submits letter of intent to begin maintenance process after 120 days of notice to enter into negotiations concerning amendment of Plan, OSSTF/FEESO may notify the Pay Equity Commission if the Board has not begun the maintenance process. 2. Bargaining Unit conducts an annual review of organizational structure and compensation practices of employer. 3. Joint Steering Committee meets to: develop Rules of Procedure for Maintenance agree on Change of Circumstance form consider new job classes in the Bargaining Unit consider job classes that have disappeared from the Bargaining Unit agree on new male comparators if required confirm changes to gender predominance of job classes 4. Bargaining Unit Executive informs members that Maintenance is underway and requests completion of Change of Circumstance forms where appropriate 5. Data Collection for new job classes (see Step 7 in Achieving a Pay Equity Plan) collect Change of Circumstance forms 6. Supervisors/Managers review all Questionnaires and Change of Circumstance forms 7. Bargaining Unit President and Employer Representative (Co-facilitators) meet to: review Change of Circumstance forms review Supervisor/Manager comments (see Step 9 in Achieving a Pay Equity Plan) determine whether the change is significant enough for evaluation 17

18 8. Joint Job Evaluation Committee meets if necessary: see Step 10 in Achieving a Pay Equity Plan 9. Joint Steering Committee meets: see Step 11 in Achieving a Pay Equity Plan to negotiate Addendum to Pay Equity Plan where a Change of Circumstance form does not lead to evaluation, a joint communication providing rationale is distributed to the incumbents 10. Bargaining Unit Executive meets to review Addendum. 11. Bargaining Unit President and Employer communicate changes in the Addendum to members 12. Addendum is posted 18

19 Pay Equity Maintenance Checklist for Bargaining Unit Presidents District #: BU Name: BU President: STEPS 1. Submit Letter of Intent to begin pay equity maintenance process DATE COMPLETED 2. Review of Job Classes and compensation 3. Joint Steering Committee meets to develop Rules of Procedure 4. Communication with Bargaining Unit members regarding maintenance process 5. Data ollection, JAQs and/or Requests for Re-evaluation completed 6. Supervisors/Managers review JAQs and Requests for Re-evaluation 7. Co-facilitators meet to review Supervisor comments and Requests for Re-evaluation 8. Joint Job Evaluation Committee meets if necessary to evaluate JAQs and Requests for Re-evaluation 9. Joint Steering Committee reviews results of evaluations, negotiates and signs Addendum 10. Bargaining Unit Executive meets to review Addendum 11. Bargaining Unit President and Employer communicate changes in the Addendum to members 12. Addendum is posted 19

20 Duties and Functions of Pay Equity Committees: Joint Steering Committee (JSC) is responsible for initiating and final completion of the pay equity process consists of equal number of representatives of Employer and Bargaining Unit (usually three per side) selected by each of the parties Bargaining Unit President should be one of the members on Steering Committee initiates process: negotiates Terms of Reference or ground rules to be used throughout the process; determines Gender Neutral Comparison System and all documentation to be used along with gender predominance of all job classes to be evaluated; decides on potential male comparators to be used outside of the bargaining unit, but within the organization, if required; determines number of incumbents who will complete Job Analysis Questionnaires determines date of retroactivity of the pay equity process sets meeting dates and attends all training sessions for completion of Job Analysis Questionnaire and initial meeting of Joint Job Evaluation Committee provides assistance in resolving disputes or refers matters in question to the Pay Equity Commission if required conducts Rank Order Analysis at the conclusion of the evaluation process and refers all necessary queries to the Joint Job Evaluation Committee determines banding of positions, calculates compensation rates, identifies male comparators, and negotiates all details, approves rates and timelines for adjustments and signs final Pay Equity Plan attends meeting with Bargaining Unit Executive to review Pay Equity Plan attends general membership meeting meets to determine process to be used for maintenance of Pay Equity Plan reviews requests for reconsideration of positions during maintenance exercise 20

21 Joint Job Evaluation Committee (JJEC) is charged with the responsibility of evaluating all jobs within the Bargaining Unit as well as any potential male comparator positions outside the Bargaining Unit consists of equal number of representatives of Employer and Bargaining Unit (usually three or four per side) plus an alternate who attends in the event of prolonged absence of a regular member of the Joint Job Evaluation Committee, or to evaluate the position held by a regular member of this Committee attends training session of Joint Job Evaluation Committee and conducts evaluation of all positions using Rating Scale as determined by the Joint Steering Committee agrees by consensus to all ratings and ensures that rationale records are maintained with accurate data reflecting intention of Joint Job Evaluation Committee refers any matters in dispute to Joint Steering Committee as required reviews Factor Ladder Reports (sore-thumbing) to determine all ratings are appropriate, consistent and fair conducts Rank Order Analysis at the conclusion of the sore-thumbing process to ensure that all jobs are ranked appropriately, reviews rationale records and confirms results receives queries or requests for reconsideration from Joint Steering Committee and further reviews Rank Order Report, as required attends general membership meeting evaluates all new jobs and any other jobs presented by the Joint Steering Committee for evaluation during the maintenance process 21

22 Bargaining Unit members of JJEC cannot evaluate their own jobs. Employer members of JJEC cannot evaluate jobs they supervise. 22

23 Documents used in the Pay Equity Process: Terms of Reference: the ground rules which determine: procedures to be followed throughout the pay equity process roles and responsibilities of participants documents to be used job classes to be evaluated Rating Scale: the evaluation tool used by the Joint Job Evaluation Committee to rate job data provided in the Job Analysis Questionnaire. It takes into consideration the factors which will allow a female job class to be compared to a male job class within the organization. Each factor is divided into subfactors in an attempt to capture major aspects of work performed (see Pay Equity Factors and Subfactors for detailed information) Job Analysis Questionnaire (JAQ): the document used to evaluate a position for pay equity purposes focuses on activities, responsibilities and requirements of each job class is exhaustive, extensive and is designed to capture the full range of work performed contains data reflecting a current, accurate and complete collection of job information is created by members who are working within the position and have the most intimate knowledge of the job. Where there is more than one incumbent in a job class, a writing team will complete a single Job Analysis Questionnaire or a group of members will be asked to complete separate JAQs for that job class, if appropriate may be completed by or include a Questionnaire completed by a member formerly in the position who has most intimate knowledge of the job completed for all job classes in the Bargaining Unit and potential male comparator jobs outside the Bargaining Unit, but within the organization 23

24 What the Job Analysis Questionnaire IS: it IS a complete description of the position as it exists today; it IS a document that accurately reflects the job requirements should a position be posted and if filled today it IS a document that includes specific examples of all job duties What the Job Analysis Questionnaire is NOT: it is NOT a measure of an individual s ability to perform the job it is NOT a measure of the extra work or skills that an employee contributes to the position it is NOT concerned with individual performance 24

25 Change of Circumstance Form: used by Bargaining Unit Members to record significant changes to job duties and skills and the date that such responsibilities were assigned. Members are encouraged to provide specific examples. Forms are distributed yearly Supervisor Comment Form: used by Supervisors/Managers (appointed by the Employer) to comment on the Job Analysis Questionnaires, where the supervisor wishes to add or modify data which was supplied by the job holder(s) Rationale Record: official documentation recording the rationale of the Joint Job Evaluation Committee for each rating will be used in the event of any challenges to the ratings in the future to confirm appropriate consideration to job duties and responsibilities Rank Order Report: a spreadsheet that applies the weighting system to the values assigned by the JJEC in order to determine total point value for each job class. Jobs are then placed in descending order from highest to lowest in order to facilitate banding and decisions about male comparators Pay Equity Plan: final document that identifies: gender predominance of Bargaining Unit job classes male jobs outside the Bargaining Unit which were used in the process, if any male comparators for each female job class any resulting pay equity adjustments for each female job class whether job to job or proportional value methods were used to determine adjustments any other adjustments that may be required to achieve Pay Equity (e.g. benefit improvements, etc.) revised salary grid and effective date of implementation date of retroactivity of payments date(s) for receipt of retroactive payment and calculation details provided to current employees date for Employer to send notification to employees no longer in Bargaining Unit 25

26 agreement regarding maintenance of Pay Equity Plan and date for first pay equity maintenance meeting (one year after date of signing Pay Equity Plan) process for receiving initial membership enquiries agreement that no member of the Bargaining Unit shall have their rate of compensation reduced in accordance with the Pay Equity Act date and signatures of all members of the Joint Steering Committee Addendum: the final document in the pay equity maintenance process that demonstrates changes and updates to the original Pay Equity Plan. Each round of maintenance where there are modifications to the Pay Equity Plan results in a new Addendum. The Addendum mirrors the original Pay Equity Plan. 26

27 How to Prepare for Post Plan Issues Impact on Collective Agreement The Pay Equity Plan may alter the existing rank order of jobs within the Bargaining Unit. In some cases, the previous ranking may have had a significant history within the Bargaining Unit and it may be difficult for some members to accept the new order of jobs. The Employer may share similar concerns and may conduct an internal equity exercise to address the issue, although there is no legal requirement for them to do so. An internal equity exercise is outside of the pay equity process. A change in the rank order of jobs may also impact the language in the collective agreement dealing with such things as lay off, recall, and bumping rights. A careful review of the collective agreement should be done to ensure consistency with the Pay Equity Plan. Issues identified can be addressed through usual bargaining processes including mid-term agreements. Potential Concerns from the Membership Despite the best effort in communicating the possible outcomes of the pay equity process to the membership, there may be misconceptions or elevated expectations. As a result, the Bargaining Unit Executive may be required to work with some disgruntled members or groups after the Pay Equity Plan is shared with the membership. These may or may not involve appeals of the posted Pay Equity Plan. When dealing with members who are unhappy with the results of the Pay Equity Plan, it is important to try and understand their perspectives on the process and outcomes. The following list provides some potential causes of the misconceptions members may have: Job classes designated as male or neutral within the Bargaining Unit will not see any increase in wage rate as a result of Pay Equity. This may be perceived as unfair to those job holders but members need to be reminded that the Pay Equity legislation only applies to designated female job classes The pay equity process is often very lengthy and members have been waiting for a long time to hear about the impact on their rates of pay. There is no correlation between the length of time to complete the pay equity process and the potential pay out. On-going communications should temper the expectations of the membership 27

28 News reports about pay equity settlements with huge retroactive pay outs within the education, broader public, and private sectors may increase the level of expectations of the membership. Each negotiated pay equity settlement is unique so direct comparisons with other plans should be avoided Some members still believe that their own work is being evaluated based on their performance and are convinced they should be rewarded for their efforts through pay equity. The objective nature of the process needs to be emphasized when dealing with this type of concern Pay equity is complicated and members may not understand the intent of the legislation and the objective processes used throughout. The relationship between male comparator job classes and female job classes should be clearly explained to members to avoid questions such as How is my job the same as his/hers? It is often difficult to set aside this level of disappointment. Dissatisfied members may develop a lack of trust in the Bargaining Unit Executive, the volunteer members involved with the pay equity process, and even the process itself. Sometimes, the bitterness extends to members of another job class where an adjustment has been made. Such divisiveness within the Bargaining Unit may be long lasting and difficult to overcome. It is therefore extremely important to communicate frequently and effectively with the membership to dispel any misconceptions about the pay equity process in an attempt to mitigate any negative responses. Employer Reactions Where a female job class is found to be earning a higher rate of pay than the determined male comparator, the Employer may attempt to address the issue during the next round of negotiations. It is critical that your Chief Negotiator be informed of all pertinent discussions raised during the final negotiation of the Pay Equity Plan. 28

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30 Common Pay Equity Questions 1. Is the pay equity process the same as the process used in contract negotiations? No. The pay equity process, once established, is a joint process, with the Bargaining Unit and the Employer working co-operatively to achieve a final Pay Equity Plan which will be defensible in the event of any challenge. Both parties undertake to conduct a fair and consistent review of all jobs. 2. Can a Pay Equity Plan and/or pay equity maintenance be done as part of negotiations for a new collective agreement, if the timing coincides? The process for negotiations and pay equity are very distinct from each other. Negotiations are governed by the Labour Relations Act and pay equity falls under the Pay Equity Act. It would be advisable to complete negotiations and continue or begin pay equity following negotiations in order to maintain the distinction. 3. Is there a ratification process for the Pay Equity Plan? No. The Joint Steering Committee negotiates and agrees to the final Pay Equity Plan. Once signed by the parties, it is deemed approved and binding. It is presented to the Bargaining Unit prior to the posting of the Pay Equity Plan. 4. Why does the pay equity process take so long? The length of time is dictated by several factors the number of committee members and their availability, the number of job classes to be evaluated, difficulty in scheduling meeting dates and ability to come to an agreement. Should the Pay Equity Commission become involved to resolve disagreements, the timelines are extended. Remember, any adjustments will be retroactive. 5. How do I know if I will receive any money as a result of pay equity, and how much? It is not possible to determine if and how much of an adjustment will be forthcoming until the Pay Equity Plan has been finalized. Should you be a part of a job class that will receive an adjustment, a summary of calculations and 30

31 deductions will be submitted to you at the time that you receive your payout. Members should prepare by estimating their own pay out based on their position(s) in the Bargaining Unit, number of hours worked, length of service, etc. to identify any possible errors in calculations. 6. Is a pay cut or freeze possible for a female job class under pay equity? No female job class can suffer a reduction in pay as a result of pay equity. Where a female job class is currently paid higher than the identified male comparator, there will be no adjustment in pay; however, the Employer may propose red circling in subsequent negotiations. 7. How does a male job class within the Bargaining Unit benefit from a pay equity exercise? Male jobs in a Bargaining Unit will not receive an increase as a result of pay equity. However, it is beneficial in negotiations if the Employer knows more about what the job classes actually do and where they fit in the organizational structure. 8. If pay equity is mandated by law, why do Pay Equity Plans differ from employer to employer? Pay equity is not an exact science. For example, the rank order of jobs, identified male comparators and compensation practices within one organization may not be the same as those in another organization. The Pay Equity Commission has concluded that Bargaining Unit members of each joint committee, and the Employer representatives, are required only to be reasonable in the collection and evaluation of job content. They do not need to meet an exact standard. The Pay Equity Commission recognizes that a range of outcomes is possible. 9. Can a Pay Equity Plan be appealed? Yes. An Individual or group of Bargaining Unit members has the legal right to appeal their Pay Equity Plan to the Pay Equity Commission. A complaint is filed with the Pay Equity Commission against the Employer and OSSTF/FEESO. Therefore, members proceed through this appeal process without the assistance of the Bargaining Unit or Provincial Office. Complaints must demonstrate non-compliance with the 31

32 spirit and intent of the Pay Equity Act, or that the Plan was not administered according to its terms. 10. How can the male comparator for my job be someone whose job responsibilities and salary are different from mine? When a male comparator is identified, it does not mean that the male job is the same as the female job, but rather that the value of the jobs is relatively the same. Under pay equity, the rate of compensation for the female job class must be equal or greater than that of the identified male comparator. 11. How is total compensation calculated? Total compensation is calculated based on the salary or job rate, number of hours/days worked per year, benefits, allowances, etc. Female jobs must have access to the same total compensation as the identified male comparators. 12. How are adjustments calculated? In the final stages of negotiating a Pay Equity Plan, the total compensation of the male comparator at maximum salary is used to determine the adjustment for the female job class, also at maximum salary. The dollar difference is applied to each level on the grid, e.g., if the adjustment is $.95 at max, with six levels on the grid, each level will have $.95 added to the salary level. 13. How soon after a Pay Equity Plan is posted will adjustments be paid? The Joint Steering Committee will agree on the retroactivity of adjustments, the effective date of adjustments, and when adjustments will be paid out. It is important to remember that a great deal of research and calculation is required to determine individual pay outs and sufficient time must be allowed. 14. Are statutory deductions and union dues taken off my pay equity adjustment? Yes. These monies are considered income and form part of your salary, therefore all the usual deductions will be made, including adjustments to pension. 32

33 15. How will a pay equity payout affect my income tax for the year? Income tax is deducted according to the requirements of Canada Revenue Agency. You may wish to consult a financial advisor or accountant for specific assistance. 16. Can a pay equity settlement impact my Employment Insurance rate? Yes. Employment Insurance rates are based on the rate of pay for the period worked. Therefore, if you receive an adjustment which increases your rate of pay for the period prior to filing for EI, your EI rate will also be increased (up to the allowable maximum). 17. Can the Employer phase in pay equity payments or do they have to pay out in one lump sum? The Joint Steering Committee may agree to a phase in period for payout. However, there is no requirement for the Bargaining Unit representatives on the Joint Steering Committee to agree. 18. What happens to the payout for members who are no longer in the Bargaining Unit or who are deceased prior to the posting of a Pay Equity Plan? The monies are owed to individuals regardless of their current employment status. Employers are obligated to advise former Bargaining Unit members at the address on record that a Pay Equity Plan exists. Should a member predecease the signing of a Pay Equity Plan, those monies owed to that member are payable to the estate. 19. Do only full-time regular members receive pay equity adjustments? All full-time and part-time Bargaining Unit members who work at least 1/3 of the normal work period are entitled to a pay equity adjustment. Bargaining Unit members who are employed on a seasonal basis in the same position, are also entitled to an adjustment. In addition, members working on a regular and continuous basis even if less than 1/3 of the normal work period, are entitled to a pay equity adjustment. 33

34 20. How long does an Employer have to hold funds in reserve for pay outs to members who are no longer in the Bargaining Unit? These monies are owed to the members and are rightfully theirs. The Employer is obligated to hold those monies in reserve with no time limit, or expiry date. 21. When there is a payout, does the Bargaining Unit have any responsibility to locate members who have left the Bargaining Unit? There is no responsibility for the Bargaining Unit to contact members who are no longer in the Bargaining Unit. However, members should be advised to ensure that the Employer has updated contact information at all times. Even after a Pay Equity Plan has been posted, the Employer should have current contact information in the event that a future maintenance process provides for an adjustment affecting those members. 22. What happens to the salary grid in the current collective agreement? The salary grid which is attached to the Pay Equity Plan replaces the salary grid in the collective agreement. All other terms and conditions of the collective agreement are status quo. However, improvements to benefits and other compensation related articles are also possible. 23. Is it possible that the current order or ranking of jobs in the Bargaining Unit could change with pay equity? Yes. It is possible that the evaluations conducted in pay equity will alter the order of positions within the Bargaining Unit. 24. Will any changes in the rank order of the Bargaining Unit impact other articles within the collective agreement? There is a possibility that a change in the ranking of certain jobs within the Bargaining Unit might impact other articles in the collective agreement, e.g. lay off and recall. 25. What if responsibilities of a position have changed since the Questionnaire was completed? Any substantial changes in responsibilities since the 34

35 Questionnaire was completed will be considered during maintenance of the Pay Equity Plan. It is important to note the date(s) when such changes occurred and to bring them to the attention of the Bargaining Unit President as soon as possible. 26. What if a new job was created after Questionnaires were completed and is not included in the initial Pay Equity Plan? Any new jobs created after the exercise began will be included in the first maintenance process, and will be evaluated in the same way as all other jobs, using the same evaluation tool. 27. What happens if a job has disappeared from the Bargaining Unit? Where a job no longer exists in the Bargaining Unit, a Job Analysis Questionnaire will be completed by the last incumbent whenever possible. Any member or former member who held the position will receive any adjustments that are owed for the period of time the position was held. 28. How soon after a Pay Equity Plan is posted does maintenance begin? It is our practice that the Maintenance process is developed and begins one year after the Plan is signed, and takes place annually thereafter. 29. What happens if the Joint Job Evaluation Committee cannot reach consensus during evaluations? The sub-factor is flagged for that job class until all jobs have been evaluated. If, at that time, there is still no agreement, the co-facilitators will assist in discussions or refer the matter to the Joint Steering Committee. Should there still be no agreement, assistance may be requested from the Pay Equity Commission. 30. Who oversees pay equity at the Provincial Office? Similar to negotiations, the Director of Protective Services/ Contract Maintenance assigns a member of the Secretariat to assist Bargaining Units in working towards pay equity or Pay Equity Maintenance and oversees all pay equity files. 35

36 31. When does the Pay Equity Commission get involved and why? At any time throughout the process that the Employer and the Bargaining Unit cannot come to agreement on an issue, a request can be submitted by either party to the Pay Equity Commission for the assistance of a Review Officer. 32. Who pays for what? Typically, all days involved in joint meetings for pay equity purposes are considered to be days worked and members will continue to receive full pay and benefits, as agreed by the Joint Steering Committee under the Terms of Reference. It is common practice that meals provided at joint meetings are paid for on a shared cost basis between the Employer and Bargaining Unit. The Employer typically provides lunch for the day of Questionnaire completion. The costs of materials (copies of documents, binders). are the responsibility of the Employer. Job class meetings to review the Questionnaire are conducted after hours and costs related are the responsibility of the Bargaining Unit, as well as any meetings that are not joint meetings, (e.g., information meetings with the Executive, general membership). 33. Do all Employers use a consultant to assist them with pay equity? No. Some Employers utilize their staff in Human Resources for pay equity purposes. Many Employers do hire a consultant, who has a broader range of pay equity experiences, to work with them throughout the process. 34. What if I have additional questions or concerns? Members should address questions or concerns to the Bargaining Unit President. 35. How does a member file a complaint and to whom? A member should address initial questions/concerns to the Bargaining Unit President. The Secretariat Pay Equity Liaison will assist with investigations into concerns expressed and will develop a draft response, to be shared with the Joint Steering Committee. It will be sent to the member(s) who submitted the concern, on behalf of both parties. If the response is not satisfactory to the member(s), an appeal to the Pay Equity Commission can be filed by the member(s). 36

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38 Glossary Commonly used Pay Equity Terms, Phrases and their meanings Addendum the final document in the pay equity maintenance process that demonstrates changes and updates to the original Pay Equity Plan. Each round of maintenance where there are modifications to the Plan results in a new Addendum. The Addendum mirrors the original Pay Equity Plan Adjustment if the total compensation rate of a female job class is less than that of the identified male comparator, an adjustment is calculated to correct the inequity this adjustment is retroactive to a date determined by the Joint Steering Committee Appeal an individual or group of individuals has the right to make a formal request to the Pay Equity Commission in the event that a complaint to the Joint Steering Committee remains unanswered or that the response is unsatisfactory after the Pay Equity Plan is posted Banding of Jobs the process negotiated and agreed to by the Joint Steering Committee to identify male comparators for the female job classes by grouping of jobs within a given range of total points the basic principles of consistency and reasonableness must be practiced the process must be above the criticism of prejudice: consistency speaks to a pattern, not convenience the method must provide for ongoing maintenance of the Pay Equity Plan Bargaining Agent the Ontario Labour Relations Board recognizes that OSSTF/ FEESO holds the bargaining rights and is the Bargaining Agent Changed Circumstance not specifically defined in the Pay Equity Act; triggers negotiations may include major changes such as certification of the Bargaining Unit, major re-structuring, amalgamation, addition or deletion of large number of jobs, or accumulated changes over time look for changed circumstance in job postings, Employer Policies, 38

39 established practices/procedures, Bargaining Unit Certificate, OLRB Jurisdiction Decisions, re-structuring, re-organization or amalgamation processes Evaluation the rating of jobs by the Joint Job Evaluation Committee under the factors identified by the Pay Equity Act Factor Ladder Report the results by subfactor of ratings by the Joint Job Evaluation Committee, indicating jobs from highest to lowest Gender Predominance the number of female or male employees in a job class determines the gender predominance for pay equity purposes: 60 per cent female employees = female job class 70 per cent male employees = male job class if neither threshold is met, it is considered a gender neutral job class Incumbent employee currently working within a job class or job holder Internal Equity the relationship of jobs within the Bargaining Unit including male jobs no consideration is given to gender is usually part of contract negotiations JAQ Job Analysis Questionnaire is the document to be used to evaluate a position for pay equity purposes; sometimes called a Position Description Questionnaire (PDQ) JJEC Joint Job Evaluation Committee conducts evaluations of all female and potential male comparator job classes JSC Joint Steering Committee initiates the pay equity process and negotiates the final Pay Equity Plan Job class a designated position within the organization Job rate the highest rate of compensation for a job class inclusive of benefits, vacation days and any other allowances 39

40 Job-to-Job Comparison the method for matching each female job class with a male job class of equal or comparable value, meaning similar, not necessarily identical in value Maintenance the review of the Pay Equity Plan usually or an annual basis ensures that no gap in compensation occurs between comparable male and female job classes provides for the evaluation of jobs new to the Bargaining Unit since the original collection of job data considers the impact of changes to job duties and gender dominance, identifies new comparators where appropriate and agrees upon any necessary pay equity adjustments Male Comparator the male job that has been identified as having the same relative value within the organization as a female job PEC Pay Equity Commission PEHT Pay Equity Hearings Tribunal Proportional Value Comparison where no male job class can be identified using the job-tojob method, a proportional value method is used. An overall pattern of the job rate for the male job classes is determined mathematically. Pay equity is achieved when the relationship between the value of the job performed and the job rate is the same for both female and male job classes Proxy Comparison where no or very few male job classes exist in a public sector organization, proxy comparison may be used if pay equity cannot be achieved using proportional value comparison and certain criteria are met applies pay equity information from one public sector organization to another in order to achieve pay equity Rank Order order of jobs within the Bargaining Unit, from highest to lowest paid job classes calculated by applying the weights to job evaluation subfactor ratings 40

41 Rating Scale document used by the Joint Job Evaluation Committee describes the levels within each subfactor for rating of jobs Rationale Record the official recording or notes which document the reasoning used by the Joint Job Evaluation Committee when rating a position Red-Circling/Green Circling red-circling is a process employers will advocate for when the job rate of a member exceeds the job rate of the male comparator or equivalently valued jobs. The job rate is effectively frozen; green-circling is a process of maintaining the job rate of a member, but still allowing negotiated increases such as a percentage or cost of living increase Request for Re-Evaluation an incumbent may request re-evaluation of a job, when there has been significant change to the job duties and/or skills Sore-thumbing the review of each subfactor (Factor Ladder Report) following completion of the ratings by the Joint Job Evaluation Committee, identifying any jobs which seem out of order as they relate to each other Terms of Reference ground rules established by the Joint Steering Committee which identifies process and documents to be used Tool rating scale or document used by the Joint Job Evaluation Committee to provide a value for each subfactor Total Compensation the rate of pay or wages plus benefits, allowances/premiums the number of hours worked per year plus vacation days, holidays, etc. is also calculated the total rate of compensation for a female job class must be equal to or greater than that of the identified male comparator Weighting Scale: represents the agreed upon weight given to each of the subfactors. This information is not shared with individuals outside the Joint Steering Committee in order to preserve the integrity of the process 41