Management and Organizational Studies 3342A/B Chapter Notes - Chapter 12: Equal Pay For Equal Work, Gender Pay Gap, Nonunion

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Chapter 12 – The Role of Governments and Unions in Compensation
Government as part of the employment relationship
oThe economy ought to be allowed to adapt and transform,
undistorted by govt actions
oGovts should carry out public policies that protect the interests
of employees
oGovt is a key stakeholder in compensation decisions
oWhether procedures for determining pay are fair, safety nets for
the unemployed and disadvantaged are sufficient, and
employees are protected from exploitation
oSupply – legislation aimed at protecting specific groups also
tends to restrict group’s participation in the labour market
oDemand – 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
oSpecifying minimum terms and conditions of employment –
minimum hourly wage, paid vacations, paid holidays, standard
hours of work and overtime pay, minimum age of employment
oMinimum wage – provide an income floor in society’s least
productive jobs
oPaid vacation – varies across jurisdictions but is around 2-3
weeks a year
oPaid holidays – varies from 5 to 9 across the country
oStandard 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
oPay 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
oMinimum age of employment – ranging from 14 to 17
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oEqual pay for equal work by men and women
Human rights laws
oIssue of workplace discrimination has become increasingly
important in this diverse workforce
oEnacted 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
oEnforcement of human rights legislation is complaint-based
Pay equity
oWage gap – the amount by which the average pay for female
workers is less than the average pay for male workers
oCanadian women working full time earned 70% of the amount
that males earned
Wage gap
oDifferences 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
oDifferences in number of hours worked – male full time workers
put in 6% more hours per week than female counterparts
particularly women with children
oDifferences among industries and firms – men more likely than
women to be in private practices and twice as likely to practice
in large firms
oDifferences in union membership
oThe 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
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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
oIdentify the unit for which the pay equity plan will be developed
oIdentify job classes with similar duties and responsibilities
oIdentify male and female job classes
oAsses the value of jobs using a gender-neutral job evaluation
system based on:
Skill
Effort
Responsibility for technical, financial, and HR
Working conditions
oCompare 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
oIdentify where compensation adjustments are required due to
disparities in compensation between male and female job
classes of equal value
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