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Lecture 23

PHI2397 Lecture 23: PHI 2397 Lecture 23

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University of Ottawa
Hilliard Aronovitch

PHI 2397 Lecture 23 Pay Equity • 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 o 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 o 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 o "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 attempts • The women that didn’t make it were terminated o BFOQ/BFOR • Bona fide (genuine) occupational qualification/requirements § Even though the test could be legitimate, there should be different requirements for women and men • 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
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