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Pay Equity Gender-Neutral Comparison Systems

 

In the pay equity process, a key component of ensuring that pay equity is achieved and maintained is the job evaluation process. Job evaluation involves using a job comparison system or “tool” to evaluate and assign value to each job class in the workplace. This is an important issue for both provincially and federally regulated workplaces.

What is a gender-neutral comparison system?

A job comparison system is any system designed to determine the relative worth of jobs within an employer’s establishment(s). A gender-neutral comparison system describes how the comparisons between male and female job classes are to be accomplished under the Ontario Pay Equity Act, 1987; it positively identifies and values characteristics of work, particularly women’s work, which were historically undervalued or invisible.

Section 12 of the Ontario Act imposes a statutory obligation upon certain employers to use a gender-neutral comparison system to undertake a comparison between female and male job classes in the establishment to determine whether pay equity exists. Section 12 requires:

Before the mandatory posting date, every employer to whom this Part applies, shall, using a gender-neutral comparison system, compare the female job classes in each establishment of the employer with the male job classes in the same establishment to determine whether pay equity exists for each female job class.

For federally regulated workplaces, the federal Pay Equity Act outlines the criterion and method to be used to determine the value of work performed:

Criterion
42 The criterion to be applied in determining the value of the work performed is the composite of the skill required to perform the work, the effort required to perform the work, the responsibility required in the performance of the work and the conditions under which the work is performed.

Method
43 In addition, an employer — or, if a pay equity committee has been established, that committee — must, to determine the value of the work performed, use a method that

(a) does not discriminate on the basis of gender; and

(b) makes it possible to determine the relative value of the work performed in all of the predominantly female and predominantly male job classes determined under section 35.

The criterion outlined in the federal Act match those in the Ontario Act (skill, effort, responsibility, working conditions). While the federal Act does not include reference to a “gender neutral comparison system”, the requirements set out in s. 43 for the method to determine value of the work performed states that the method must not discriminate on the basis of gender. Given these similarities between the federal and Ontario legislation, the caselaw in Ontario dealing with the requirements of a gender-neutral comparison system is likely applicable and relevant in the federal context.

The Ontario Pay Equity Hearings Tribunal has held that there are four components of a gender-neutral comparison system (“GNCS”).

  1. The accurate collection of job information.
  2. Deciding on the mechanism or tool to determine how the value will attach to the job information.
  3. Applying the mechanism to determine the value of the work performed.
  4. Making the comparisons.

The parties must negotiate and endeavour to agree on these elements to satisfy their obligations to describe the system as required by the Ontario Pay Equity Act (s. 12). Each component that forms part of the comparison system must be gender neutral. If there if bias in one component, the system as a whole is not gender neutral. The parties are required to eliminate gender bias from all parts of the comparison system.

Where to find a GNCS?

There are existing GNCS/tools that can be purchased for use. The parties can also agree to develop a tool specific to the workplace or to agree on an existing tool that may be modified to suit the workplace. Sometimes, employers also propose using a GNCS/tool developed by a consultant.

Below are some questions to consider when deciding whether to use a tool developed by a consultant*:

  • Origin of the tool:
    • Where does the tool come from?
    • When was it developed?
    • What types of jobs or sectors was it developed for?
    • In what work context is it most often used?
  • Modifications/changes to the tool:
    • What changes have been introduced in order to adapt the tool for pay equity purposes?
    • Can the tool be adapted to accurately capture and assess the job classes in your workplace?
    • Is the consultant willing to allow members of the Pay Equity Committee to participate fully in the job evaluation process?
  • Is the tool gender neutral?
    • Does the tool capture work that is often overlooked?
    • Are the questions free of bias/discrimination?

The GNCS is a vitally important part of the pay equity process and a GNCS that does not fit the needs of the specific workplace in question can result in many issues and impediments to achieving and maintain pay equity. It is necessary to ensure that the GNCS captures all aspects of work and does not miss aspects of women’s work which is often overlooked in job evaluation processes.

If you have any questions about tools for the pay equity process, please contact us. We can provide assistance with the selection and use of GNCS in the pay equity and job evaluation contexts.

*Note – This checklist draws on the list provided in: “Promoting Equity: Gender-Neutral Job Evaluation for Equal Pay: A Step-by-Step Guide,” Chicha, Marie-Thérèse, Geneva, International Labour Office, 2008, p. 27.