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Pay Equity Office

Annual Report 2014-2015

Title: Pay Equity Office Annual Report 2014-2015

Date: March 2016

Contact us: Pay Equity Commission Pay Equity Office 180 Dundas Street West, Suite 300 Toronto, Ontario M7A 2S6 Telephone: 416-314-1896 Toll-Free: 1-800-387-8813 TTY: 416-212-3991 Toll-Free: 1-855-253-8333 Facsimile: 416-314-8741 Hours: Monday to Friday 8:30 a.m. - 5:00 p.m. Email: [email protected] Website: www.payequity.gov.on.ca

Ce document est disponible en français ISSN 1929-3712 (Print) Pay Equity Office Annual Report 2014-2015 ISSN 1929-3720 (Online) Pay Equity Office Annual Report 2014-2015 ISSN 1929-3739 (Imprimé) Bureau de l'équité salariale rapport annuel 2014-2015 ISSN 1929-3747 (En ligne) Bureau de l'équité salariale rapport annuel 2014-2015

mailto:[email protected]

http://www.payequity.gov.on.ca/

Contents

1. Commissioner’s Message .................................................................................... 5 2. Ontario’s Pay Equity Act ...................................................................................... 7 3. About the Pay Equity Office ................................................................................. 8

Legal Mandate ...................................................................................................... 8

Values .................................................................................................................. 8

4. Overview and Key Achievements ........................................................................ 9

Outreach ............................................................................................................... 9

Advancing Gender Wage Gap and Pay Equity ................................................... 13

5. Performance Measures ...................................................................................... 14 6. Pay Equity Office Organization ......................................................................... 15

Staff .................................................................................................................... 16

Unit Descriptions ................................................................................................ 16

Commissioner’s Office ........................................................................................ 16

Executive Director’s Office ................................................................................. 16

Review Services ................................................................................................. 17

Research, Administration and Outreach ............................................................. 17

7. Financial Performance 2014-2015 ..................................................................... 17 8. Accountability Statement ................................................................................... 18 9. Appendix 1 – Caseload Statistics ...................................................................... 20

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1. Commissioner ’s Message

This year has seen a marked increase in public awareness about the gender wage gap, both locally and internationally as countries continue to struggle with low productivity and low job growth rates. In 2014, the Ontario government marked the significance of this issue by acknowledging April 16 as Equal Pay Day. The Minister of Labour, recognizing the important role of pay equity in addressing aspects of the gender wage gap, asked the Pay Equity Office to convene stakeholders to begin exploring the scope of the issue. The event, held on April 16, brought together a wide range of people representing business, labour, advocacy groups and government. A summary of the dialogue was provided to participants and to the Minister of Labour and the Minister Responsible for Women’s Issues. Building on this work, the Minister of Labour’s Mandate Letter from the Premier contained specific instructions to develop a wage gap strategy to close the gender wage gap within the context of the modern economy. The Minister in turn has called upon the Pay Equity Office to assist the Ministry by appointing me as one of four members of the Gender Wage Gap Steering Committee and asking that resources of the Office be committed to the project. We are pleased and honoured to be included in this very important project that allows us to contribute our knowledge and expertise towards solutions to this complex issue. I am pleased to report that, as we contributed to the Wage Gap Strategy, the core work of the Office continued apace. Our enforcement activities meant that some 2,000 employees saw real increases to their wages as a result of pay equity, with most employers achieving compliance voluntarily by working with our Review Officers to resolve complaints. Our monitoring activities included contacting those employers who were found to have apparent wage gaps in the previous fiscal period as well as classified agencies of the Ontario government to ensure pay equity compliance. To

Pay Equity Off ice Annual Report 2014-2015 5

assist new businesses and increase awareness, the Office contacted 16,000 employers and individuals in this fiscal year and provided information about pay equity. I am also pleased to report that this year marked the launch of our Gender Wage Gap Grant program. The total sum of $50,000 was made available to three groups who met the criteria for the grant. In addition to increasing awareness of the gender wage gap, the grant recipients have added important empirical information to our body of knowledge about different aspects of this complex problem. Finally, I would like to close by thanking the Pay Equity Office staff for their continued support and dedication.

Respectfully Submitted Emanuela Heyninck


2. Ontario’s Pay Equity Act According to Statistics Canada, the 2011 gender wage gap in Ontario for full-time, full-year employment is 26%. Studies show that nearly a third of this gap could be attributed to systemic discrimination in the workplace and can be manifested throughout an organization: from the hiring process, the organizational culture, assignment of work, through to how specific jobs are paid. These forms of discrimination are addressed by a variety of laws. The purpose of the Pay Equity Act is to redress systemic gender discrimination in the compensation of employees in female job classes. All public sector employers and all private sector employers with ten or more employees are required to have compensation practices that provide for pay equity. Achieving Pay Equity The Act sets out the criteria to be applied by employers to identify systemic gender discrimination in compensation and the means by which it is to be corrected. To meet the minimum requirements and to show that pay equity has been achieved, all employers covered by the Act are required to undertake the following at each of the employer’s establishments:

Note:* The proxy method of comparison contained in Part II of the Act was, repealed in 1996 and restored by court order in 1997. The Pay Equity Office continues to enforce the proxy provisions.

1 •Determine job classes, including identifying the gender of the job class and job rate;

2 •Determine the value of job classes based on factors of skill, effort, responsibility and working conditions;

3 •Conduct comparisons for all female job classes using the job-to-job, proportional value or proxy method of comparison (proxy is for public sector only and of limited application);

4 •Adjust the wages of underpaid female job classes so that they are paid at least as much or equal to a comparable male job class or classes within the establishment;

5 •Maintain pay equity for female job classes to ensure that new pay equity gaps are not created or re-emerge.


3. About the Pay Equity Office Continuing on its mission set in 2013/14, the Pay Equity Office (PEO) promotes gender economic equality by enforcing pay equity rights and obligations through effective case and complaint management; understanding gender wage gaps through research; and promoting awareness to advance economic equality for Ontario’s working women. Legal Mandate The Pay Equity Commission (Commission) was established by section 27 of the Pay Equity Act, 1987, S.O. 1987.c.34 (the Act) and is continued by subsection 27(1) of the Act, R.S.O, 1990, c.P.7 as amended (the Act). Its purpose is to “redress gender discrimination in the compensation of employees employed in female job classes in Ontario”. The Commission consists of two separate and independent parts: the Pay Equity Hearings Tribunal (PEHT) and the Pay Equity Office. The Commissioner is the head of the PEO and the Chief Administrative Officer (CAO) of the PEC, appointed by the Lieutenant Governor in Council on the recommendation of the Minister. The Chair of the PEHT is responsible for the PEHT’s administration. The Minister of Labour is accountable to the government for the PEC and is responsible for representing the PEC in Cabinet and its Committees, in the Legislative Assembly and before Committees of the Legislature. The Minister is accountable to the Legislature for the PEC’s fulfillment of its mandate and compliance with government administrative policies. The Minister is also responsible for the review and approval of the PEC’s Business Plan and Annual Report, and for submitting them to Management Board of Cabinet. Values Fairness - We demonstrate integrity by providing equitable and impartial enforcement actions. Accountability - We accept responsibility for our activities and disclose the results in a transparent manner. Service Excellence - We strive to provide outstanding and responsive service.


Impact - We influence, educate, and enforce to achieve and maintain pay equity in Ontario workplaces.

Connect - We connect and advance women’s compensation issues by building effective partnerships with diverse stakeholders and communities.

To advance gender economic equality in Ontario

4. Overview and Key Achievements The Pay Equity Office achieves its mandate through:

• Providing information and educational resources to employers and employees about pay equity and pay equity processes;

• Conducting information sessions at a variety of venues;

• Investigating and resolving complaints through alternative dispute resolution methods, or issuing Orders for compliance;

• Referring Orders to the Pay Equity Hearings Tribunal (the Tribunal) for enforcement;

• Monitoring establishments for compliance with the provisions of the Act;

• Researching and disseminating information about pay equity and Ontario’s gender wage gaps to the public and workplace parties;

• Responding to requests from the Minister and preparing reports and recommendations to the Minister about pay equity and related matters such as the gender wage gap.

Outreach Communicating the purpose and obligations of the Pay Equity Act is embedded in the everyday activities of the PEO. The PEO utilizes various channels of communication to inform employers, bargaining agents, employees and interested parties about the implementation and maintenance of pay equity. The PEO’s website has guides, tools and 24/7 e-learning modules to provide site visitors with information about the Act to enable them to become compliant. The


website was visited approximately 19,000 times a month in the last fiscal year, with the number of hits reaching 25,000 from the end of September to the beginning of November. This spike may be attributed to the fact that the Office launched its 2014 Outreach program and the 2014 Monitoring program at that time as well as the Gender Wage Gap Grant Program. The PEO continues to evaluate its web resources to ensure that information remains relevant and reviews other government sites for potential cross-links. The most frequently accessed information on the website are the Gender Wage Gap (43%), the home page (24%) and the Guide to the Pay Equity Act (11%). In addition to the website materials, the PEO conducts real-time information sessions. This past year the PEO participated in the Human Resources Professionals Association (HRPA) annual trade show and select chapter meetings; the Greater Toronto Rewards Association (GTA) seminar attended by over 80 employers and sessions at York University and Ryerson, providing 3,395 participants with pay equity information. The PEO launched a “New Employer” initiative to provide pay equity compliance information through a direct mailing to new employers in Ontario, reaching 16,000 new employers and individuals in 2014/15. Linkages with the Workers’ Action Centre (WAC) late in the fiscal year has provided for regular dialogue with WAC advisers and plans are underway to educate advisors to reach out to the most vulnerable workers in Ontario regarding pay equity compliance. The PEO continues to deliver general information to the public through our telephone lines and email box. This year, we received 1,152 calls and 89 enquiries through our website. Enforcement Program Priorities: 1) Investigating Compliance

Review Officers investigate complaints alleging contraventions of the Act and assist the workplace parties in attempting to settle the issues that can arise during the implementation, achievement and maintenance of pay equity. In cases where Review Officers discover non-compliance and employers are uncooperative, Review Officers will issue Orders. Any party affected by a Review


Officer’s decision may request a hearing before the Tribunal. Review Officers may also refer an Order to the Tribunal for enforcement where a party fails to comply with the provisions of the Order within the prescribed timeframes. In total 2,076 employees received adjustments stemming from our investigations into workplaces, receiving a total of nearly $5M in adjustments, with the largest adjustments being awarded to government-funded organizations. i) Applications Received In 2014/15, PEO received 95 complaints, of which 52% were from unions and/or their members and 47% from unrepresented parties. Approximately 43% of the cases resolved in this fiscal period were complaint applications. ii) Closed Complaint case characteristics Workplaces: The PEO closed 100 complaint case files in 2014/15, impacting 64 workplaces, 48 in the government-funded sector. Workers: 67% of the applicants were unionized employees. Level of voluntary compliance: Of the 100 cases resolved, 94% of cases achieved compliance without an Order. Of the 6 establishments that required Orders, 5 were from the Broader Public Sector (BPS), including Community Living organizations where adjustments totalled over $1.8M, impacting 921 employees, and the hospital sector with adjustments of $558K paid to 148 employees. iii) Caseload priorities

The Office continues to focus on complaints and older files, ensuring that complaint files are resolved within 24 months. Achievement towards this target has increased each year. As of March 31, 2014, only 9% or 10 of 110 the total open complaint files were older than 24 months and of those, 4 complaint files were opened between 2010 and 2011. This is compared with 2013/14 where 36% of open complaint files were over 24 months and 2012/13 where 20.5% of open complaint files were over 24 months.


2) Investigating Compensation Practices that Provide for Pay Equity (Monitoring) Starting with the Wage Gap Pilot Project and continuing with the 2015 New Employer Monitoring program, the PEO has refocused its monitoring activities to encourage employers to assess their current compensation practices to provide for pay equity. Where adjustments are found to be owing, employers are required to retroactively pay adjustments to the date when the job was created. Monitoring files are regularly opened following the resolution of a complaint investigation, where there is information that the establishment has not achieved or maintained pay equity. To ensure that employees in establishments are made aware of our monitoring activities, all decisions of Review Officers are now required to be posted in a visible location in the workplace. In 2014/15, 128 monitoring files were resolved with nearly half being files opened within the 2014/15 fiscal year. While the priority has been to expedite complaint cases, aging files generally have been a focus for the Office. In 2012/13 36% of monitoring files were older than 3 years. This number rose to 55% in 2013/14, before dropping sharply to 9% in 2014/15. These statistics reflect the changing focus of the Monitoring Programs, the winding down of the Hotel/Motel/Retail program and the number of files opened under each initiative. Sixty nine percent of open monitoring files were opened in the 2014/15 fiscal year. The 2014/15 Monitoring Program included investigating those files identified under the Wage Gap Program to have an apparent wage gap and monitoring classified agencies of the Ontario government to ensure pay equity compliance, in addition to our ongoing complaint monitoring files. In total, 188 new monitoring files were opened in 2014/15.

2,076 Ontario workers received adjustments from their employers, totaling nearly $5.0 million


Advancing Gender Wage Gap and Pay Equity Government Initiatives and Priorities In April 2014, at the request of the Minister of Labour, the PEO hosted a dialogue with stakeholders on key issues and recommendations regarding the gender wage gap. A summary of this dialogue was shared with the Minister of Labour, the then Minister of Women’s Issues and all participants. In September 2014, the Minister of Labour’s Mandate Letter noted a government priority to develop a wage gap strategy. The PEO began working with the Ministry to provide background research and information used to define the scale of this initiative. A small temporary PEO project team was formed to support this initaitive as the supporting role of the PEO became clear. The Minister appointed the Pay Equity Commissioner to the Gender Wage Gap Steering Committee, along with 3 other advisors. The Terms of Reference for the Steering Committee stipulates that support services will be provided to the Committee by the Ministry of Labour, the Ontario Women’s Directorate and the PEO. In Winter 2014, the PEO began preparations for a partnership event with the Ontario Human Rights Commission to examine the gender wage gap and intersectionality issues, looking at impacts on various communities of women. This event is to the mark the 2nd Equal Pay Day, to be held April 22, 2015. Gender Wage Gap Grant Program The Pay Equity Office’s Gender Wage Gap Grant Program (GWGGP) was launched in November 2014. The 2014-15 call for proposals supported the Government’s priority of economic growth by adding to the understanding of the gender wage gap and how the earning potential of Ontario’s working women can be maximized. Two specific priority areas of action were defined: Actions/research addressing Ontario’s gender wage gap; and Actions/research promoting gender balance in the workplace.


After a competitive process, three proposals were funded:

• The Ontario Undergraduate Student Alliance produced two video clips – among other activities- to make the gender wage gap in Ontario visible and relevant to students and faculty on Ontario university campuses.

• Dr. Miana Plesca at the Department of Economics and Finance at the University of Guelph conducted research related to the male-female wage gap across education categories.

• Dr. Tammy Shirle from the Department of Economics at Wilfrid Laurier University conducted a decomposition of the Ontario 2014 gender wage gap and developed a calculator to offer employers an estimate of the average wage of male and female employees given a specific set of employee characteristics.

Stakeholder Relations and Feedback The Commissioner plays a critical role in creating an environment of cooperation and collaboration with all of our stakeholders. Meetings were held with stakeholders from professional associations, advocacy groups and academia. 5. Performance Measures In 2014-2015, the PEO continued to monitor and report on key performance measures as follows:

Program: Pay Equity Measure

2013-2014

Achieved

2014-2015

Target

2014-2015

Achieved

Employers, unions and employees work collaboratively to address emerging pay equity issues

Percentage of cases where compliance achieved without order, no contraventions, settled. 90% 90 94%

Employers take corrective action to become pay equity compliant

Number of pay equity cases resolved.

348

340

228


Program: Pay Equity Measure

2013-2014

Achieved

2014-2015

Target

2014-2015

Achieved

Program services are delivered in a timely professional, knowledgeable and cost effective manner

Time spent to resolve cases (complaint and monitoring)

64%of files

< 3 years

90% of files

< 3 years

72% of files

< 3 years % of complaint cases resolved within 24 months 64% N/A 77%

% of complaint cases resolved within 24-36 months 15% N/A 4%

% of complaint cases resolved over 36 months 21% N/A 19%

% of formal education activities conducted with other organizations

N/A% 18% 100%

% of cases where Review Officer decisions not changed by Pay Equity Hearing Tribunal

83% 90% 94%

6. Pay Equity Office Organization The Pay Equity Office is committed to ensuring an inclusive and accessible environment in which all members of the public have equal access to its services and are treated with dignity and respect. The office is committed to providing accommodation for all persons with identified disabilities under the Accessibility Act for Ontarians with Disabilities Act, 2005 (AODA), who attend our office, and to treating all people in a way that allows them to maintain their dignity and independence. The PEO participates in the Ministry’s Diversity and Inclusion strategy design and the management team continue to learn about leadership diversity competencies through semi-annual meetings. In keeping with requirements under the AODA, the PEO created a new accessibility policy and a multi-year accessibility plan. The PEO is also committed to assessing all of its existing policies, programs, guidelines and practices to ensure they are in keeping with the principles of diversity and inclusion.


Staff The Pay Equity Office consists of 26 Full Time Equivalents at the end of 2014-15. The Commissioner is an Order-in-Council appointee, first appointed in November 2004. The Office is organized into core operational units with a temporary project team established to support the Minister of Labour’s mandate to develop a Gender Wage Gap strategy.

Unit Descriptions Commissioner’s Office The Commissioner is appointed by Order-in-Council by the Legislature to act as the head of the PEO and the Chief Administrative Officer of the PEC, as required by the Pay Equity Act. Reporting to the Minister of Labour, the Commissioner is responsible for setting the strategic direction of the PEO and, with the assistance of Legal Counsel, ensuring that the Office operates within its legislative mandate and in compliance with general administrative law principles. Executive Director’s Office The Executive Director’s Office provides leadership in developing and implementing the PEO’s strategic direction and is accountable for setting financial, human resources and procurement policies and practices and ensuring the agency operates within OPS


standards. The Executive Director is responsible for developing organizational capacity and ensuring that resources can deliver on program commitments set through strategic and operational planning while ensuring an appropriate balance among services. Review Services The Review Services Unit is responsible for the enforcement of the Act. The Unit is comprised of 14 Review Officers who provide expertise and handle the investigation of objections to pay equity plans, complaints of contraventions of the Act, settlement negotiations, and monitor the pay equity processes. The Case Management Unit provides file administration and case processing services and is instrumental in supporting upgrades and modifications to the case management system to facilitate transparent, relevant and efficient reporting of case statistics. Research, Administration and Outreach The PEO has established this unit to meet our strategic priority of advancing gender equality. In addition to providing outreach services, the unit is the central hub of all information and statistical reporting. This research informs the development of future monitoring programs, stakeholder engagement and outreach as well as education/awareness initiatives. Gender Wage Gap Project Team A temporary project team has been formed to support the Ministry of Labour’s mandate to develop a gender wage gap strategy. This team will work closely with a Steering Committee and work alongside project supports from the Ministry of Labour and the Ontario Women’s Directorate. 7. Financial Performance 2014-2015

The PEO’s annual operating budget is part of the Ministry of Labour’s estimates and allocation process and the agency is required to report regularly on its expenditures and planned commitments. The Deputy Minister of Labour has delegated authority for specific financial and administrative transactions to the Commissioner, the Executive Director and Managers.


The PEO is subject to audit review and expenditure constraints and its managers are accountable for following established management practices and using public resources for authorized purposes. Fiscal Year 2014/15 All figures in $000.00 thousand

Account Initial Allocation

Adjustment/ TBO

Approval

Rev Allocation

Year-end

Budget incl

lease

Year-end Actuals Variance %

Variance

Salaries & Wages 2,423.0 (50.0) 2,373.0 2,373.0 2,124.4 248.6 10.5%

Benefits 275.3 - 275.3 275.3 258.7 16.6 6.0%

ODOE : Transportation

& Communication

50.0 - 50.0 50.0 40.9 9.1 18.2%

Services 134.1 134.1 368.4 478.0 (109.6) -29.8% Supplies & Equipment 20.0 - 20.0 20.0 32.9 (12.9) -64.3%

Total ODOE 204.1 - 204.1 438.4 551.8 (113.4) -25.9% TP 50.0 50.0 50.0 37.6 12.4 24.9%

Sub Total 2,952.4 (50.0) 2,902.4 3,136.7 2,972.5 164.2 5.2% PEO Lease -

S&W - - - PEO Lease -

Services 234.3 234.3 Grand Total 3,186.7 (50.0) 3,136.7

Includes $167,650 Salary for OIC Commissioner 8. Accountability Statement The PEO Annual Report for fiscal year ending March 31, 2014 is prepared for submission to the Minister of Labour in accordance with the Agencies and Appointments Directive (2015) as issued by Management Board of Cabinet. The Public Accounts of Ontario are annual financial statements that are prepared in compliance with the requirements of Section 13 of the Ministry of Treasury and


Economics Act. The Public Accounts consist of the financial report of the Government of Ontario and the financial reports of each ministry. In accordance with the Ministry of Labour’s Delegation of Financial Authority Framework, financial authority is delegated to the agency. Each year, the PEO verifies that all its transactions are reflected accurately and completely in the Public Accounts through the attestation of a Certificate of Assurance. The program Review, Renewal and Transformation Plan of the Ministry of Labour, released in the fall of each year, contains the Ministry’s mission and accountability statements, the consolidated financial/allocation statements of the Ministry and an annual comparison of actual performance results to desired results set out in the Ministry business plan. As an agency of the Ministry of Labour, the PEO’s Annual Report is subject to the minimum reporting requirements established in the Agencies and Appointments Directive, including:

• Financial statements that have been audited or subject to the appropriate level of external assurance

• Analysis of operational performance

• Analysis of financial performance

• Names of appointees and terms of appointments Performance measures, targets achieved/not achieved and action to be taken.


9. Appendix 1 – Caseload Statistics New Cases Opened Since 2009, the number of investigation files (applications for review services and monitoring files) opened at the Pay Equity Office has fluctuated between approximately 65 and 160.

Fiscal Year Monitoring Complaint

Applications Other

2011 - 2012 50 137 6 2012 - 2013 104 67 1 (PEHT)* 2013 -2014 61 91 1 (PEHT) 2014 - 2015 177 95 0

* PEHT files include those files returned from the Pay Equity Hearings Tribunal for further investigation.

Applicant Profile In 2014-15, 47% of applications received for Review Services were made by unrepresented individuals.

* Includes Employer applications, employer Notice of Inability to achieve, plus new cases resulting from PEHT decisions.

Workplace Cooperation and Compliance In 2014-15, 96.4% of cases achieved compliance without Order, were found to have no contraventions of the Pay Equity Act, were abandoned, or were settled. This level of compliance is contrasted against the 2013/14 achievement rate of 90%

Fiscal Year

Total Applicants

Applicant status

Represented and/or Union

Applicant status

Unrepresented Employee

Applicant status Other*

2011-2012 137 50 73 14 2012-2013 67 28 34 5 2013-2014 91 63 25 3 2014-2015 95 50 45 0


In total, approximately 6% or 13 of the 190 establishments investigated required an Order, representing an increased level of voluntary compliance from the previous year. Of the total cases resolved in 2014-15, 9 or 3% of cases proceeded to the Pay Equity Hearings Tribunal (PEHT), either referred by the Pay Equity Office or taken by the parties disputing the Review Officer’s decision. Caseload Closure Summary Table


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