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The content of this presentation is for general information purposes only. It is not intended to provide legal advice or opinions of any kind and may not be used for professional or commercial purposes.
Le contenu de cette présentation est uniquement à but informatif et ne constitue pas, ni ne vise à constituer un quelconque avis juridique ou un conseil d’ordre professionnel engageant notre cabinet.
November 2, 2022
Helicopter Association of Canada
Pay Equity and Updates to the
Canada Labour Code:
Impact on Aviation
Overview of
the Pay
Equity Act
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
What is Pay Equity
Pay equity ≠ equal pay for equal work
• Equal pay for equal work: providing equal pay to workers doing the same job,
regardless of gender
• Pay equity: providing female job class employees with pay equal to that of male job class
employees when the value of their work is the same
Federal Pay Equity Act is proactive, not complaint driven
Presumes one pay equity plan
Includes maintenance (updating) obligations
The Objective is to address systemic gender-based discrimination in wages.
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Posting Deadline
• First deadline under the Pay Equity Act (the “Act”) was to post a notice to
employees by November 1, 2021
• Obligation to establish pay equity plan
• If applicable, obligation to establish pay equity committee
• Requirements for committee membership
• Informing any non-unionized employees of right to designate representative
committee members
• Informing any unionized employees that bargaining agent will select
representative committee members
• If you have missed this deadline, post a notice as soon as possible
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
PAY EQUITY COMMITTEES
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Mandatory for some employers
• Others can voluntarily establish one on their own initiative or at the
request of an employee
• Must notify Pay Equity Commissioner (“Commissioner”)
7
Establishing a Pay Equity Committee
Number of Employees Pay Equity Committee
100+ Required
10-99, some unionized Required
10-99, none unionized Voluntary
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• The Committee must have:
• At least three members
• At least 2/3 of members represent employees to whom the plan relates
• At least 50% of members are women
• At least one member is selected by employer to represent it
• If there are unionized employees, at least one member to represent each
of the bargaining agents representing unionized employees
• If there are non-unionized employees, at least one member selected by
majority vote of non-unionized employees to represent them
8
Committee Composition
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Make premises and equipment available for employee representative
selection and work of pay equity committee
• Provide committee with any information committee considers
necessary for establishment of pay equity plan
• Give employer representative members sufficient direction to permit
them to perform their work on the committee
9
Employer Obligations in Support of
Committee
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Act provides for process and remedy through Commissioner’s office in
the following circumstances:
• If employer, despite having made all reasonable efforts, is unable to
establish a committee
• If a committee does not, at any time after it has been established, meet the
composition requirements (aside from employer representative)
• If, after establishing committee, employer is of the opinion that committee
is unable to perform its work
• Committee challenges of this magnitude are expected to be rare
10
Committee Challenges
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
11
Committee Obligations – Overview
1 Identify job classes
2 Determine which job classes are predominantly female and which are predominantly male
3 Determine the value of work in the job classes
4 Calculate compensation associated with each job class
5 Compare compensation of predominantly male and predominantly female job classes
6 Post draft pay equity plan and provide comment period
7 Post final version of pay equity plan
8 Make required increases to compensation
9 Post updated plan at least every five (5) years (maintenance)
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
SINGLE VS. MULTIPLE PLANS
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Act presumes one plan, but can apply to establish more than one
• Remember that each plan will require a committee (if applicable)
• Most important strategic decision to be made
• What is the current approach?
• Single approach to job evaluation, classification, pay: may be difficult to
argue for a multiple-plan model
• Multiple plans: current state may be best, or may be an opportunity to
better align classification and pay models
• No formal processes/plans: consider how many plans best achieve intent
of the Act (redress of gender-based wage discrimination) and support
operational and organizational realities
13
Single vs. Multiple Plans
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Must apply to Commissioner for authorization to establish more than
one plan
• Done by way of an Authorization Request
• If parties are in agreement about the request, parties other than requesting
party can file a Statement of Support to help expedite the assessment
• Commissioner will determine if it is:
1. Possible to identify enough predominantly male job classes to compare
compensation for each proposed plan
2. Appropriate in the circumstances to authorize establishment of more than
one plan
14
Multiple Plans:
Commissioner Considerations
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• “Enough”
• No specific quantity of predominantly male job classes
• Will consider estimated quantity of predominantly male job classes (how
many, range of values of work)
• Will also consider estimated quality of predominantly male job classes
(ability to compare across range of values of work)
• If multiple plans would unnecessarily restrict scope of predominantly male
job classes under a proposed plan, application may be denied
15
Multiple Plans:
Commissioner Considerations
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• “Appropriate in the circumstances”
• Did employer try to create a single plan?
• Are there objections and if so, what is the nature of the objections?
• Would impacts of establishing multiple plans be gender neutral?
• Would establishing multiple plans meet purpose of the Act?
 Redress potential systemic pay-based gender discrimination in the workplace
• Are there regional disparities to consider?
• Do multiple bargaining units or communities of interest warrant multiple
plans?
16
Multiple Plans:
Commissioner Considerations
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• In addition to committee members, employers and bargaining agents
are also bound by confidentiality obligations
• Each employer and bargaining agent that receives confidential
information from a member of a pay equity committee must also keep
the information confidential
• Must also keep confidential the data received from another employer for
the purpose of identifying differences in compensation
17
Confidentiality of Information
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Executives are included in pay equity plans
• Commissioner factors will be applied to any applications for a separate pay
equity plan
• Commissioner guidance indicates that bargaining agent committee
representative should not also be at the bargaining table
• Ensure labour relations conflicts do not impact pay equity process
• Also helps ensure confidentiality of pay equity information
• How will the ultimate plan that is posted play into collective bargaining?
• Wage adjustment proposals, maintenance obligations, impact on other
units if all in one plan
18
Practical Considerations
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Employers should have already posted a notice about their obligations
• If not already done, develop an overarching communications plan to
set the tone for any future work
• For example, for some organizations, pay equity has already been
achieved and is being proactively maintained, and this should be captured
as a context for future compliance
• For other organizations, there is significant work to be completed that may
range from developing job descriptions to implementing a new job
evaluation tool – work that can take years to accomplish – and that reality
should provide context to any launch communications/notice
• Once a committee is struck, communications will likely become a
component of their mandate
19
Communications
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Pay Equity Commissioner website: https://www.payequitychrc.ca/en
• Information
• Templates
• Interpretations, Guidelines, and Policies (“IPGs”)
• Emond Harnden seminars and resources
• Pay equity consultants
20
Resources
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Changes to the
Canada Labour
Code
Confirmed Legislative
Amendments the Canada Labour
Code
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Bill C-3: An Act to amend the Criminal Code and the Canada Labour
Code, introduces two important amendments to the Code: (i) new paid
medical leave provisions; and (ii) new bereavement leave provisions
Bill C-3 Medical and Bereavement
Leave
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Bill C-3 Medical Leave
Amendments include:
1. Entitlement to Paid Medical Leave
• Up to a maximum of 10 days per year
• Accrued at a rate of 1 day per month
2. Carry Over Paid Medical Leave
3. Medical Certification Request
4. Record Keeping Requirements
The content on this presentation is provided for general information purposes only and
does not constitute legal or other professional advice or an opinion of any kind.
EMOND HARNDEN | LABOUR & EMPLOYMENT LAW
Bill C-3 Medical Leave
The actual number of days to which an employee will be entitled will
depend on the employee’s length of service as follows:
• After 30 days of continuous employment with the employer, the employee
will earn 3 days of paid medical leave.
• Employees will earn one additional paid day at the start of each month
after completing one month of continuous employment, up to a maximum
of 10 days per calendar year.
• Each paid day must be paid at the employee’s “regular rate of wages” as
defined by the Canada Labour Standard Regulations.
• An employer may require an employee to take paid medical leave in full
day increments.
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Record-Keeping Requirements for Employers:
• The proposed Regulations will require all employers to keep the
following records related to each period of medical leave with pay:
• Dates of commencement and termination of leave;
• The year of employment when leave was earned;
• The number of days of leave carried over from a previous year;
• A copy of any written request for a medical certificate made by an
employer; and
• A copy of any medical certificate submitted by an employee.
Medical Leave: Record Keeping
Requirements
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Bereavement Leave
Bill C-3 also introduces new bereavement leave
provisions for:
1. The death of a child or the child of one’s spouse or
common-law partner; and
2. For employees who experience a stillbirth or the
stillbirth of their spouse or common-parent or where
they would have been a parent as defined by
the Code, of the child born as a result of the
pregnancy.
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Proposed Amendments to the
Canada Labour Code
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Proposed Amendments
Proposed Amendments by the Federal Government on October 1, 2022
1. Reimbursement of Reasonable Work-Related Expenses
2. Employee Information Regulations
3. Services of Documents
4. Regular Rate of Wages
5. Administrative Monetary Policies
6. Raising the Minimum Wage of Employment for Hazardous Occupations
7. Menstrual Products
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Work Related Expense - Factors to be Considered
• Whether the expense is connected to the employee’s performance of work;
• Whether the expense enables an employee to perform work;
• Whether incurring the expense is required by the employer as a condition of
employment or continued employment;
• Whether the expense satisfies a requirement for the employee’s work
imposed by an occupational health or safety standard; and
• Whether the expense was incurred for a legitimate business purpose and
not for personal use or enjoyment.
Reimbursement of Reasonable
Work-Related Expenses
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Reimbursement of “Reasonable”
Work-Related Expenses
“Reasonableness”- Factors to be Considered
• Whether the expense is connected to the employee’s performance of work;
• Whether the expense was incurred to enable an employee to perform work;
• Whether it was incurred at the request of the employer;
• Whether an amount of expense was incurred beyond the amount necessary to
enable the performance of work;
• Whether the expense is one that is normally reimbursed by employers in similar
industries;
• Whether the employer authorized the expense in advance;
• Whether the employee incurred the expense in good faith; and
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Requirement to Provide Menstrual
Products
• Would amend sanitation provisions in the OHS Regulations
• Require employers to provide menstrual products
• Including tampons and menstrual pads
• In all toilets regardless of marked gender
• Require covered contained for disposal in each toilet stall
• If not feasible, provide in another location as long as accessible at all times and
reasonably private
• E.g. remote work site, in air
• Consider providing in supply cabinet in designated rest space, or a kit
• Administrative monetary penalties for violation
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Consultation Processes
Right to Disconnect
• No proposed regulations yet
• Report published February 2022
• Recommendations made:
• Goal should be work-life balance
• Need flexibility
• May or may not end up enshrined in statute
• Also awaiting final regulations on exemptions to the hours of work provisions
for the aviation sector
• Until then, IPG on “Scope of Application” continues to apply
Questions?
Questions?
The content of this presentation is for general information purposes only. It is not intended to provide legal advice or opinions of any kind and may not be used for professional or commercial purposes.
Le contenu de cette présentation est uniquement à but informatif et ne constitue pas, ni ne vise à constituer un quelconque avis juridique ou un conseil d’ordre professionnel engageant notre cabinet.
Resource Slides:
Pay Equity Committee Obligations
Overview
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
37
Committee Obligations – Overview
1 Identify job classes
2 Determine which job classes are predominantly female and which are predominantly male
3 Determine the value of work in the job classes
4 Calculate compensation associated with each job class
5 Compare compensation of predominantly male and predominantly female job classes
6 Post draft pay equity plan and provide comment period
7 Post final version of pay equity plan
8 Make required increases to compensation
9 Post updated plan at least every five (5) years (maintenance)
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
• Committee must identify the job classes for the employees to whom
the plan relates
• Positions are in the same job class if they:
• Have similar duties and responsibilities;
• Require similar qualifications; and
• Are part of the same compensation plan and are within the same range of
salary rates
• It is possible to have a one-position, even single incumbent, job class
38
1. Identification of Job Classes
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
1. Identification of Job Classes
• Considerations in the identification of job classes:
• Linkages with job design and structure
• Broad versus narrow
• Use of the concept of “group”
• Linkages with gender dominance
• Vacancies
• Challenge of current Treasury Board standards where there are a
range of jobs that currently fall into a group and level but with the use of
a contemporary job evaluation tool, are found to be of different job
value
39
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
2. Determination of Gender of Job
Class
• Committee must determine which job classes are predominantly
female, and which are predominantly male
• Job class is predominantly of one gender if:
• At least 60% of the positions in the class are occupied by that gender;
• Historically, at least 60% of the positions in the job class were occupied by
that gender; or
• The job class is one that is commonly associated with that gender due to
gender-based occupational stereotyping
40
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
3. Determination of Value of Work
• If at least one predominantly female job class and at least one
predominantly male job class, committee must determine value of work
performed in each of those job classes
• Method cannot be discriminatory based on gender
• Method must allow determination of relative value of work performed in
all predominantly female and male job classes
• Committee can determine that value of work for such job classes has
already been determined by a method compliant with the Act
41
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
3. Determination of Value of Work
• For a group of predominantly female job classes, value of work
performed is value of work performed in individual job class in group
with largest number of employees
• Value of work determined by applying the composite of:
• Skill required to perform the work;
• Effort required to perform the work;
• Responsibility required in the performance of the work; and
• Conditions under which the work is performed
42
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Choosing a Job Evaluation System
• Fundamental question is build versus buy?
• Critical issue, particularly if the selected job evaluation (“JE”) tool is to
be used across multiple workforce segments represented by different
bargaining agents is what is of value in your organizational, broadly?
• Consider the links of JE with organization design (sub-factors, levels
and weighting)
• Challenges of administrative simplicity – the more complex the tool, the
more complex and onerous the process, including maintenance
• The enabling job content is a critical piece of the puzzle – determine
how and what information to collect or rely on
43
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Choosing a Job Evaluation System:
Defining Job Value
44
Skill Effort Responsibility
Working
Conditions
• Education
• Experience
• Knowledge
• Mechanical &
Physical Skills
• Communications
• Physical Effort
• Sensory Effort
• Complexity
/Problem Solving
• Emotional Effort
• Accountability
• Financial
• Information
• Material
• People
• Impact /
Consequence
• Physical
Conditions
• Psychological
Conditions
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
4. Calculation of Compensation
• Committee must calculate compensation associated with each job
class for which value of work performed has been determined
• Compensation must be expressed in dollars per hour
• For a group of job classes treated as predominantly female job class,
compensation associated with job class is compensation associated
with individual job class in group with greatest number of employees
• Salary to be used in calculation is the salary at the highest rate in the
range of salary rates for positions in the job class
• May exclude compensation equally available to all job classes in a
manner that is not discriminatory based on gender
45
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
5. Comparison of Compensation
• Committee must use the compensation they have calculated to
compare the compensation of the predominantly female job classes
with that of the predominantly male job classes
• Must use either the equal average method or the equal line method
• If employer determines neither method can be used, must apply to
Commissioner to use another prescribed method, or another proposed
method, if none prescribed
• If committee determines neither method can be used, committee must
use a prescribed method, or one that it determines is appropriate, if
none prescribed
46
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
5. Comparison of Compensation:
Equal Average Method – Within Band
47
Job
Class
Gender
Job Value
Band1
Job Rate
$ / Hour
JOB 1 M 3 $25
JOB 2 M 3 $30
JOB 3 M 3 $30
JOB 4 F 3 $25
JOB 5 F 3 $30
JOB 6 F 3 $35
Male Average
$28.34
Existing internal
equity can be
disrupted
Job Value Results
1 Banding appears to be a given in the legislation
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
5. Comparison of Compensation:
Equal Average Method – Nearest Band
48
Job
Class
Gender Band JE Points
Job Rate
$ / Hour
JOB 1 F 3 90 $25
JOB 2 F 3 100 $30
JOB 3 F 3 110 $30
JOB 4 M 5 160 $35
JOB 5 M 5 180 $40
Equal Pay for Band 3 is determined to be:
($37.50 X 100) / 170 = $22.06
Male Average
$37.50
Average Job
Value is 170
Female Average
Job Value is 100
Job Class JE Minimum JE Maximum
Band 1 26
Band 2 26 75
Band 3 76 125
Band 4 126 150
Band 5 151 200
Job Value Results
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
5. Comparison of Compensation:
Equal Line Method
49
Pre Pay Equity
$15.00
$25.00
$35.00
$45.00
$55.00
$65.00
50 150 250 350
Post Pay Equity
Adjustments to female dominated job are required only if the female wage line is completely
below the male line. Future regulations will provide further guidance where the male and
female wage lines cross.
JE Points
JE Points
Hourly
Rate
of
Pay
Hourly
Rate
of
Pay
Male Job Class ⚫️
Male Wage Line
Female Job Class
Female Wage Line
$15.00
$25.00
$35.00
$45.00
$55.00
$65.00
50 150 250 350
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Permitted Differences in
Compensation
• May exclude differences in compensation based on the following, if
applied in a manner that does not discriminate based on gender:
1. Compensation system based on seniority or length of service;
2. A system of temporarily maintaining compensation following classification
to a position with a lower rate of compensation, until the rate of
compensation becomes equal to or greater than the temporary rate;
3. Shortage of skilled workers causing a temporary increase in
compensation because of recruitment difficulty;
50
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
Permitted Differences in
Compensation
4. Employee participation in development or training program with different
rate of compensation than employee doing the same work outside of the
program;
5. Non-receipt of benefits with a monetary value due to temporary, casual
or seasonal nature of position;
6. Merit-based compensation plan based on formal performance ratings
system of which employees are aware; or
7. Compensation for extra-duty services (e.g. overtime, shift work, on-call,
call-back, working or travelling on non-work day)
51
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
6. Contents of Pay Equity Plan
• Identification of each predominantly female job class requiring an increase
in compensation
• For each such job class, identify how compensation will be increased,
and amount in dollars per hour of the increase
• Identification of date on which increase in compensation (or first increase,
as applicable) will be payable
• Information on dispute resolution procedures available under the Act,
including timelines
52
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
6. Contents of Pay Equity Plan
• Whether a group of job classes was treated as a single predominantly
female job class, which job classes are included, and the individual job
class used to determine value of work and compensation
• Method of valuation and results for each job class for which value of work
was determined
• List of job classes in which differences in compensation were excluded
from calculation and why
• Indication of which method of compensation comparison was used
• If not one of the two methods, the reasons why neither were used, a
description of the method used, and the results of the comparison
53
EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE
L’EMPLOI
7. Post Final Version of Pay Equity
Plan
• With certain exceptions, employer must post final version of pay equity
plan no later than third anniversary of becoming subject to Act
• Group of employers must post final version of plan on the same day
• Employer may apply to the Commissioner for an extension of time to
post the final pay equity plan
• Employer must post, as soon as possible after authorization obtained,
notice indicating date on which extended period ends
• Employer deemed to have established pay equity plan on day it is
posted
54

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HAC Pay Equity - November 2 2022 (Removed notes)[1].pptx

  • 1.
  • 2. The content of this presentation is for general information purposes only. It is not intended to provide legal advice or opinions of any kind and may not be used for professional or commercial purposes. Le contenu de cette présentation est uniquement à but informatif et ne constitue pas, ni ne vise à constituer un quelconque avis juridique ou un conseil d’ordre professionnel engageant notre cabinet. November 2, 2022 Helicopter Association of Canada Pay Equity and Updates to the Canada Labour Code: Impact on Aviation
  • 4. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI What is Pay Equity Pay equity ≠ equal pay for equal work • Equal pay for equal work: providing equal pay to workers doing the same job, regardless of gender • Pay equity: providing female job class employees with pay equal to that of male job class employees when the value of their work is the same Federal Pay Equity Act is proactive, not complaint driven Presumes one pay equity plan Includes maintenance (updating) obligations The Objective is to address systemic gender-based discrimination in wages.
  • 5. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Posting Deadline • First deadline under the Pay Equity Act (the “Act”) was to post a notice to employees by November 1, 2021 • Obligation to establish pay equity plan • If applicable, obligation to establish pay equity committee • Requirements for committee membership • Informing any non-unionized employees of right to designate representative committee members • Informing any unionized employees that bargaining agent will select representative committee members • If you have missed this deadline, post a notice as soon as possible
  • 6. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI PAY EQUITY COMMITTEES
  • 7. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Mandatory for some employers • Others can voluntarily establish one on their own initiative or at the request of an employee • Must notify Pay Equity Commissioner (“Commissioner”) 7 Establishing a Pay Equity Committee Number of Employees Pay Equity Committee 100+ Required 10-99, some unionized Required 10-99, none unionized Voluntary
  • 8. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • The Committee must have: • At least three members • At least 2/3 of members represent employees to whom the plan relates • At least 50% of members are women • At least one member is selected by employer to represent it • If there are unionized employees, at least one member to represent each of the bargaining agents representing unionized employees • If there are non-unionized employees, at least one member selected by majority vote of non-unionized employees to represent them 8 Committee Composition
  • 9. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Make premises and equipment available for employee representative selection and work of pay equity committee • Provide committee with any information committee considers necessary for establishment of pay equity plan • Give employer representative members sufficient direction to permit them to perform their work on the committee 9 Employer Obligations in Support of Committee
  • 10. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Act provides for process and remedy through Commissioner’s office in the following circumstances: • If employer, despite having made all reasonable efforts, is unable to establish a committee • If a committee does not, at any time after it has been established, meet the composition requirements (aside from employer representative) • If, after establishing committee, employer is of the opinion that committee is unable to perform its work • Committee challenges of this magnitude are expected to be rare 10 Committee Challenges
  • 11. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 11 Committee Obligations – Overview 1 Identify job classes 2 Determine which job classes are predominantly female and which are predominantly male 3 Determine the value of work in the job classes 4 Calculate compensation associated with each job class 5 Compare compensation of predominantly male and predominantly female job classes 6 Post draft pay equity plan and provide comment period 7 Post final version of pay equity plan 8 Make required increases to compensation 9 Post updated plan at least every five (5) years (maintenance)
  • 12. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI SINGLE VS. MULTIPLE PLANS
  • 13. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Act presumes one plan, but can apply to establish more than one • Remember that each plan will require a committee (if applicable) • Most important strategic decision to be made • What is the current approach? • Single approach to job evaluation, classification, pay: may be difficult to argue for a multiple-plan model • Multiple plans: current state may be best, or may be an opportunity to better align classification and pay models • No formal processes/plans: consider how many plans best achieve intent of the Act (redress of gender-based wage discrimination) and support operational and organizational realities 13 Single vs. Multiple Plans
  • 14. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Must apply to Commissioner for authorization to establish more than one plan • Done by way of an Authorization Request • If parties are in agreement about the request, parties other than requesting party can file a Statement of Support to help expedite the assessment • Commissioner will determine if it is: 1. Possible to identify enough predominantly male job classes to compare compensation for each proposed plan 2. Appropriate in the circumstances to authorize establishment of more than one plan 14 Multiple Plans: Commissioner Considerations
  • 15. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • “Enough” • No specific quantity of predominantly male job classes • Will consider estimated quantity of predominantly male job classes (how many, range of values of work) • Will also consider estimated quality of predominantly male job classes (ability to compare across range of values of work) • If multiple plans would unnecessarily restrict scope of predominantly male job classes under a proposed plan, application may be denied 15 Multiple Plans: Commissioner Considerations
  • 16. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • “Appropriate in the circumstances” • Did employer try to create a single plan? • Are there objections and if so, what is the nature of the objections? • Would impacts of establishing multiple plans be gender neutral? • Would establishing multiple plans meet purpose of the Act?  Redress potential systemic pay-based gender discrimination in the workplace • Are there regional disparities to consider? • Do multiple bargaining units or communities of interest warrant multiple plans? 16 Multiple Plans: Commissioner Considerations
  • 17. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • In addition to committee members, employers and bargaining agents are also bound by confidentiality obligations • Each employer and bargaining agent that receives confidential information from a member of a pay equity committee must also keep the information confidential • Must also keep confidential the data received from another employer for the purpose of identifying differences in compensation 17 Confidentiality of Information
  • 18. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Executives are included in pay equity plans • Commissioner factors will be applied to any applications for a separate pay equity plan • Commissioner guidance indicates that bargaining agent committee representative should not also be at the bargaining table • Ensure labour relations conflicts do not impact pay equity process • Also helps ensure confidentiality of pay equity information • How will the ultimate plan that is posted play into collective bargaining? • Wage adjustment proposals, maintenance obligations, impact on other units if all in one plan 18 Practical Considerations
  • 19. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Employers should have already posted a notice about their obligations • If not already done, develop an overarching communications plan to set the tone for any future work • For example, for some organizations, pay equity has already been achieved and is being proactively maintained, and this should be captured as a context for future compliance • For other organizations, there is significant work to be completed that may range from developing job descriptions to implementing a new job evaluation tool – work that can take years to accomplish – and that reality should provide context to any launch communications/notice • Once a committee is struck, communications will likely become a component of their mandate 19 Communications
  • 20. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Pay Equity Commissioner website: https://www.payequitychrc.ca/en • Information • Templates • Interpretations, Guidelines, and Policies (“IPGs”) • Emond Harnden seminars and resources • Pay equity consultants 20 Resources
  • 21. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Changes to the Canada Labour Code
  • 23. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Bill C-3: An Act to amend the Criminal Code and the Canada Labour Code, introduces two important amendments to the Code: (i) new paid medical leave provisions; and (ii) new bereavement leave provisions Bill C-3 Medical and Bereavement Leave
  • 24. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Bill C-3 Medical Leave Amendments include: 1. Entitlement to Paid Medical Leave • Up to a maximum of 10 days per year • Accrued at a rate of 1 day per month 2. Carry Over Paid Medical Leave 3. Medical Certification Request 4. Record Keeping Requirements
  • 25. The content on this presentation is provided for general information purposes only and does not constitute legal or other professional advice or an opinion of any kind. EMOND HARNDEN | LABOUR & EMPLOYMENT LAW Bill C-3 Medical Leave The actual number of days to which an employee will be entitled will depend on the employee’s length of service as follows: • After 30 days of continuous employment with the employer, the employee will earn 3 days of paid medical leave. • Employees will earn one additional paid day at the start of each month after completing one month of continuous employment, up to a maximum of 10 days per calendar year. • Each paid day must be paid at the employee’s “regular rate of wages” as defined by the Canada Labour Standard Regulations. • An employer may require an employee to take paid medical leave in full day increments.
  • 26. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Record-Keeping Requirements for Employers: • The proposed Regulations will require all employers to keep the following records related to each period of medical leave with pay: • Dates of commencement and termination of leave; • The year of employment when leave was earned; • The number of days of leave carried over from a previous year; • A copy of any written request for a medical certificate made by an employer; and • A copy of any medical certificate submitted by an employee. Medical Leave: Record Keeping Requirements
  • 27. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Bereavement Leave Bill C-3 also introduces new bereavement leave provisions for: 1. The death of a child or the child of one’s spouse or common-law partner; and 2. For employees who experience a stillbirth or the stillbirth of their spouse or common-parent or where they would have been a parent as defined by the Code, of the child born as a result of the pregnancy.
  • 28. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Proposed Amendments to the Canada Labour Code
  • 29. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Proposed Amendments Proposed Amendments by the Federal Government on October 1, 2022 1. Reimbursement of Reasonable Work-Related Expenses 2. Employee Information Regulations 3. Services of Documents 4. Regular Rate of Wages 5. Administrative Monetary Policies 6. Raising the Minimum Wage of Employment for Hazardous Occupations 7. Menstrual Products
  • 30. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Work Related Expense - Factors to be Considered • Whether the expense is connected to the employee’s performance of work; • Whether the expense enables an employee to perform work; • Whether incurring the expense is required by the employer as a condition of employment or continued employment; • Whether the expense satisfies a requirement for the employee’s work imposed by an occupational health or safety standard; and • Whether the expense was incurred for a legitimate business purpose and not for personal use or enjoyment. Reimbursement of Reasonable Work-Related Expenses
  • 31. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Reimbursement of “Reasonable” Work-Related Expenses “Reasonableness”- Factors to be Considered • Whether the expense is connected to the employee’s performance of work; • Whether the expense was incurred to enable an employee to perform work; • Whether it was incurred at the request of the employer; • Whether an amount of expense was incurred beyond the amount necessary to enable the performance of work; • Whether the expense is one that is normally reimbursed by employers in similar industries; • Whether the employer authorized the expense in advance; • Whether the employee incurred the expense in good faith; and
  • 32. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Requirement to Provide Menstrual Products • Would amend sanitation provisions in the OHS Regulations • Require employers to provide menstrual products • Including tampons and menstrual pads • In all toilets regardless of marked gender • Require covered contained for disposal in each toilet stall • If not feasible, provide in another location as long as accessible at all times and reasonably private • E.g. remote work site, in air • Consider providing in supply cabinet in designated rest space, or a kit • Administrative monetary penalties for violation
  • 33. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Consultation Processes Right to Disconnect • No proposed regulations yet • Report published February 2022 • Recommendations made: • Goal should be work-life balance • Need flexibility • May or may not end up enshrined in statute • Also awaiting final regulations on exemptions to the hours of work provisions for the aviation sector • Until then, IPG on “Scope of Application” continues to apply
  • 35.
  • 36. The content of this presentation is for general information purposes only. It is not intended to provide legal advice or opinions of any kind and may not be used for professional or commercial purposes. Le contenu de cette présentation est uniquement à but informatif et ne constitue pas, ni ne vise à constituer un quelconque avis juridique ou un conseil d’ordre professionnel engageant notre cabinet. Resource Slides: Pay Equity Committee Obligations Overview
  • 37. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 37 Committee Obligations – Overview 1 Identify job classes 2 Determine which job classes are predominantly female and which are predominantly male 3 Determine the value of work in the job classes 4 Calculate compensation associated with each job class 5 Compare compensation of predominantly male and predominantly female job classes 6 Post draft pay equity plan and provide comment period 7 Post final version of pay equity plan 8 Make required increases to compensation 9 Post updated plan at least every five (5) years (maintenance)
  • 38. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI • Committee must identify the job classes for the employees to whom the plan relates • Positions are in the same job class if they: • Have similar duties and responsibilities; • Require similar qualifications; and • Are part of the same compensation plan and are within the same range of salary rates • It is possible to have a one-position, even single incumbent, job class 38 1. Identification of Job Classes
  • 39. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 1. Identification of Job Classes • Considerations in the identification of job classes: • Linkages with job design and structure • Broad versus narrow • Use of the concept of “group” • Linkages with gender dominance • Vacancies • Challenge of current Treasury Board standards where there are a range of jobs that currently fall into a group and level but with the use of a contemporary job evaluation tool, are found to be of different job value 39
  • 40. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 2. Determination of Gender of Job Class • Committee must determine which job classes are predominantly female, and which are predominantly male • Job class is predominantly of one gender if: • At least 60% of the positions in the class are occupied by that gender; • Historically, at least 60% of the positions in the job class were occupied by that gender; or • The job class is one that is commonly associated with that gender due to gender-based occupational stereotyping 40
  • 41. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 3. Determination of Value of Work • If at least one predominantly female job class and at least one predominantly male job class, committee must determine value of work performed in each of those job classes • Method cannot be discriminatory based on gender • Method must allow determination of relative value of work performed in all predominantly female and male job classes • Committee can determine that value of work for such job classes has already been determined by a method compliant with the Act 41
  • 42. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 3. Determination of Value of Work • For a group of predominantly female job classes, value of work performed is value of work performed in individual job class in group with largest number of employees • Value of work determined by applying the composite of: • Skill required to perform the work; • Effort required to perform the work; • Responsibility required in the performance of the work; and • Conditions under which the work is performed 42
  • 43. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Choosing a Job Evaluation System • Fundamental question is build versus buy? • Critical issue, particularly if the selected job evaluation (“JE”) tool is to be used across multiple workforce segments represented by different bargaining agents is what is of value in your organizational, broadly? • Consider the links of JE with organization design (sub-factors, levels and weighting) • Challenges of administrative simplicity – the more complex the tool, the more complex and onerous the process, including maintenance • The enabling job content is a critical piece of the puzzle – determine how and what information to collect or rely on 43
  • 44. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Choosing a Job Evaluation System: Defining Job Value 44 Skill Effort Responsibility Working Conditions • Education • Experience • Knowledge • Mechanical & Physical Skills • Communications • Physical Effort • Sensory Effort • Complexity /Problem Solving • Emotional Effort • Accountability • Financial • Information • Material • People • Impact / Consequence • Physical Conditions • Psychological Conditions
  • 45. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 4. Calculation of Compensation • Committee must calculate compensation associated with each job class for which value of work performed has been determined • Compensation must be expressed in dollars per hour • For a group of job classes treated as predominantly female job class, compensation associated with job class is compensation associated with individual job class in group with greatest number of employees • Salary to be used in calculation is the salary at the highest rate in the range of salary rates for positions in the job class • May exclude compensation equally available to all job classes in a manner that is not discriminatory based on gender 45
  • 46. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 5. Comparison of Compensation • Committee must use the compensation they have calculated to compare the compensation of the predominantly female job classes with that of the predominantly male job classes • Must use either the equal average method or the equal line method • If employer determines neither method can be used, must apply to Commissioner to use another prescribed method, or another proposed method, if none prescribed • If committee determines neither method can be used, committee must use a prescribed method, or one that it determines is appropriate, if none prescribed 46
  • 47. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 5. Comparison of Compensation: Equal Average Method – Within Band 47 Job Class Gender Job Value Band1 Job Rate $ / Hour JOB 1 M 3 $25 JOB 2 M 3 $30 JOB 3 M 3 $30 JOB 4 F 3 $25 JOB 5 F 3 $30 JOB 6 F 3 $35 Male Average $28.34 Existing internal equity can be disrupted Job Value Results 1 Banding appears to be a given in the legislation
  • 48. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 5. Comparison of Compensation: Equal Average Method – Nearest Band 48 Job Class Gender Band JE Points Job Rate $ / Hour JOB 1 F 3 90 $25 JOB 2 F 3 100 $30 JOB 3 F 3 110 $30 JOB 4 M 5 160 $35 JOB 5 M 5 180 $40 Equal Pay for Band 3 is determined to be: ($37.50 X 100) / 170 = $22.06 Male Average $37.50 Average Job Value is 170 Female Average Job Value is 100 Job Class JE Minimum JE Maximum Band 1 26 Band 2 26 75 Band 3 76 125 Band 4 126 150 Band 5 151 200 Job Value Results
  • 49. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 5. Comparison of Compensation: Equal Line Method 49 Pre Pay Equity $15.00 $25.00 $35.00 $45.00 $55.00 $65.00 50 150 250 350 Post Pay Equity Adjustments to female dominated job are required only if the female wage line is completely below the male line. Future regulations will provide further guidance where the male and female wage lines cross. JE Points JE Points Hourly Rate of Pay Hourly Rate of Pay Male Job Class ⚫️ Male Wage Line Female Job Class Female Wage Line $15.00 $25.00 $35.00 $45.00 $55.00 $65.00 50 150 250 350
  • 50. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Permitted Differences in Compensation • May exclude differences in compensation based on the following, if applied in a manner that does not discriminate based on gender: 1. Compensation system based on seniority or length of service; 2. A system of temporarily maintaining compensation following classification to a position with a lower rate of compensation, until the rate of compensation becomes equal to or greater than the temporary rate; 3. Shortage of skilled workers causing a temporary increase in compensation because of recruitment difficulty; 50
  • 51. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI Permitted Differences in Compensation 4. Employee participation in development or training program with different rate of compensation than employee doing the same work outside of the program; 5. Non-receipt of benefits with a monetary value due to temporary, casual or seasonal nature of position; 6. Merit-based compensation plan based on formal performance ratings system of which employees are aware; or 7. Compensation for extra-duty services (e.g. overtime, shift work, on-call, call-back, working or travelling on non-work day) 51
  • 52. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 6. Contents of Pay Equity Plan • Identification of each predominantly female job class requiring an increase in compensation • For each such job class, identify how compensation will be increased, and amount in dollars per hour of the increase • Identification of date on which increase in compensation (or first increase, as applicable) will be payable • Information on dispute resolution procedures available under the Act, including timelines 52
  • 53. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 6. Contents of Pay Equity Plan • Whether a group of job classes was treated as a single predominantly female job class, which job classes are included, and the individual job class used to determine value of work and compensation • Method of valuation and results for each job class for which value of work was determined • List of job classes in which differences in compensation were excluded from calculation and why • Indication of which method of compensation comparison was used • If not one of the two methods, the reasons why neither were used, a description of the method used, and the results of the comparison 53
  • 54. EMOND HARNDEN | LABOUR AND EMPLOYMENT LAW | DROIT DU TRAVAIL ET DE L’EMPLOI 7. Post Final Version of Pay Equity Plan • With certain exceptions, employer must post final version of pay equity plan no later than third anniversary of becoming subject to Act • Group of employers must post final version of plan on the same day • Employer may apply to the Commissioner for an extension of time to post the final pay equity plan • Employer must post, as soon as possible after authorization obtained, notice indicating date on which extended period ends • Employer deemed to have established pay equity plan on day it is posted 54