PHI 2397 Lecture 23
• Before "equal pay for equal work"
• After "equal pay for work of equal value"
o Why the second one?
• Jobs in which women have lower pay, although: experienced, responsible, and educated
Canada - 2000 Liberals
• Compare factors such as following, to determine that different jobs deserve equal pay because it has equal worth
o Years of education required, formal credentials, prior job experience, number of persons supervising, etc.
o Businesses must establish programs to show stats, monitor, achieve, etc.
• Major cases, drag for decades through courts: BCE, Air Canada, etc.
o But in some, billions must be paid out by companies: for many women have been underpaid for decades,
and still continue to be
• Fall/winter 2009 under P/M Harper, system chan ged
o "Public Sector Equitable Compensation Act"
• This would make the union responsible for the agreements
• The union had to bargain with the employer to ensure to get the results they like
• If they can't get what they want, they can go to court to ensure pay equity
• But now again, Liberals -P.M Trudeau in government, promises to bring a new pay equity law by 2018
o Various provinces, e.g. Ontario have pay equity in their jurisdiction
Lessons from Nortel: Acquisitions spree, bad management calls led to tech gi ant's fall, study says
• 2009 Nortel goes bankrupt
Major telecom company - why? What happened?
• A study done by UOttawa Telfer Professor, Johnathan Calof…
o "Despite Nortel's fantastic revenue growth during the early years of Mr. Roth's reign as CEO, the company
didn’t generate a penny of profit. Mr Roth relied on the company' inflated market value *(Share price times
number of shares), which reached $366 -billion at the peak in 2000, to pay for acquisitions, executive
compensation, and provide col lateral for borrowing."
o "Nortel had people on technology side who could design leading -edge technology solutions and people on
the sale side who understood the customers' needs. Yet, in restructuring for revenue growth, the company
lost this advantage; […]"
The Bankgrounc to 2009, and the aftermath - Nortel
• '[..] in 1999 to 2000, Nortel was worth nearly $300 billion and employed more than 90,000 people globally and
was regarded as one of Canada's most valuable tech companies."
• "One of the largest bankruptcies in Canadian history […] well over $1 billion US"
• "7.3 billion US" dollars in assets settlement
• 4.1 billion to Canadian pensioners and former employees
• 3.2 billion to U.S ones
o Previously, pay-out by Ontario government pension guarantee fund
In all Ontario pensioners get back about "more than 90% of their original pensions"
• October 2016
o "The end of the Nortel bankruptcy is not presently in the sight'; "Nortel is still operating in a sense"
• They are like a ghost company, since they are still fixing all the problems from the bankruptcy
• Many things were still being paid, and compensations were still being given out
"190 million US in post-bankruptcy special retention bonuses have already been paid out" to current
executives of Nortel
Discrimination against women? Supreme Court of Canada case
• British Columbia (Public Service Employee Relations Commission) vs. BCGSEU (1999) o Woman firefighter, 33, working for B.C Ministry of Forests
o Employer adopts new tests for physical fitness
• Most men, passed easily, but most women were 50 seconds slower than required, even after several
• The women that didn’t make it were terminated
• Bona fide (genuine) occupational qualification/requirements
Even though the test could be legitimate, there should be different requirements for women
• Court gives the jobs back to the women, and also there is compensation for lost wages and benefits
• Reason is because the employers test was in good faith, but since the woman had been doing her job
perfectly for so many years she could have it back
§ Even though this test is important, one has to take