Chapter 12 and appendix.doc

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Management and Organizational Studies
Management and Organizational Studies 3342A/B
Linda Eligh

Chapter 12 – The Role of Governments and Unions in Compensation • Government as part of the employment relationship o The economy ought to be allowed to adapt and transform, undistorted by govt actions o Govts should carry out public policies that protect the interests of employees o Govt is a key stakeholder in compensation decisions o Whether procedures for determining pay are fair, safety nets for the unemployed and disadvantaged are sufficient, and employees are protected from exploitation o Supply – legislation aimed at protecting specific groups also tends to restrict group’s participation in the labour market o Demand – affects demand for labour as a direct employer. Also indirectly affects labour through its purchases as well as its public policy decisions • Employment standards acts o Specifying minimum terms and conditions of employment – minimum hourly wage, paid vacations, paid holidays, standard hours of work and overtime pay, minimum age of employment o Minimum wage – provide an income floor in society’s least productive jobs o Paid vacation – varies across jurisdictions but is around 2-3 weeks a year o Paid holidays – varies from 5 to 9 across the country o Standard hours of work and overtime pay – 40-48 hours a week and OT pay is 1.5 times regular pay – meal breaks and rest period are also required but do not have to be paid - contemporary employees face an increasingly skilled workforce with higher training costs AND high benefit costs o Pay on termination of employment – must provide minimum notice of termination – varies from 1 to 8 weeks depending on length of service – require additional severance to be paid o Minimum age of employment – ranging from 14 to 17 o Equal pay for equal work by men and women • Human rights laws o Issue of workplace discrimination has become increasingly important in this diverse workforce o Enacted in every jurisdiction in Canada – every person gets equal treatment regardless of race, colour, creed/religion, sex, sexual orientation, marital status, age, or mental or physical disability o Enforcement of human rights legislation is complaint-based • Pay equity o Wage gap – the amount by which the average pay for female workers is less than the average pay for male workers o Canadian women working full time earned 70% of the amount that males earned • Wage gap o Differences in occupation – the historical segregation of women into a small number of occupations such as sales, nursing, and teaching even though more females than men graduate from universities o Differences in number of hours worked – male full time workers put in 6% more hours per week than female counterparts particularly women with children o Differences among industries and firms – men more likely than women to be in private practices and twice as likely to practice in large firms o Differences in union membership o The presence of discrimination – 46% of women said they had experienced discrimination while only 9% of men said they had – women reported than less qualified men were chosen for promotions over them – at higher levels discrimination was more subtle and harder to prove • Pay equity legislation – legislation intended to redress the unexplained portion of the wage gap assumed to be due to gender discrimination – proactive rather than complaint-based o Identify the unit for which the pay equity plan will be developed o Identify job classes with similar duties and responsibilities o Identify male and female job classes o Asses the value of jobs using a gender-neutral job evaluation system based on:  Skill  Effort  Responsibility for technical, financial, and HR  Working conditions o Compare male and female job classes using one of the following:  Job-to-job method – comparing pay for male and female dominated job classes where each female job class is compared to a male job class of equal or comparable value  Promotional value/wage line method – comparing pay for male and female dominated job classes when female job class have no appropriate male comparators under the job-to-job system, where the wage line for male job classes is applied while setting pay for female job classes  Proxy comparison method – comparing pay for male and female dominated job classes when pay equity cannot be achieved through job-to-job or proportional value methods, where female job classes are compared to similar female job classes that have achieved pay equity with another employer – quite controversial o Identify where compensation adjustments are required due to disparities in compensation between male and female job classes of equal value o Develop a pay equity plan that sets how the differences in compensation that were discovered through the pay equity process will be remedied:  Description of the unit for which pay equity plan has been developed  Identification of all job classes that formed the bases of comparisons  Description of the gender-neutral job evaluation system used  Where more than one method of comparison was permissible  The results of the compari
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