CRM 200 Lecture Notes - Lecture 12: Equal Pay For Equal Work, Occupational Segregation, Unemployment Benefits
3 May 2018
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Department
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Professor
Chapter Twelve - The Roles of Governments and Unions in
Compensation
Government as Part of the Employment Relationship
• Government is a key stakeholder in compensation decision making. Compliance is a
critical compensation objective.
• Goeets’ iteests include:
o procedures for determining pay are fair (pay discrimination)
o safety nets for the unemployed and disadvantaged are sufficient (minimum
wage, employment insurance)
o employees are protected from exploitation (human rights, pay equity)
Effect of Government on Supply of & Demand for Workers
• Demand
o Government a big employer: federal, provincial & municipal
o Indirectly affects labor demand through its purchases and policy decisions
▪ If they buy something, those company will need to hire ppl to make stuff
to sell to the gov
o Demand of labor:
▪ Min wage
• Supply
o Affects labor supply through legislation
▪ Min age to work etc
▪ Type of certification needed for different work
o Licensing requirements restricts labour supply
o Immigration policy
o Supply of labor
▪ Immigration policies
Employment Standards Acts (ESA)
• minimum wage
• paid vacation and holidays
• standard hours of work and overtime pay
• pay (or notice) on termination of employment
• minimum age of employment
• equal pay for equal work by men and women
• leaves, e.g., maternity, bereavement and compassionate care leave
o enforcement has relied on a complaint based model
o States all the min of employment. No one can give you less than that. Can give
more but not less
Human Rights Laws
• based on Charter of Human Rights and Freedoms in Canadian Constitution
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• equal treatment in employment and opportunity for employment regardless of race,
olou, eligio, se…
• prohibit harassment in the workplace
Pay Equity
• issue relating to the gender wage gap
• gender wage gap = average pay for female workers is less than the average pay for male
workers
o Just because the number is higher = doesn’t mean that women is earning more
because men can be earning less
o Age groups - in the beginning the age gap is smaller but as you climb up the
ladder the gap gets bigger.
▪ Factors
• Birth
• Taking care of family
• Equal pay for work of equal VALUE
Farrell’s why e ear ore
- Ppl who get higher pay
- Work in unpleasant environment
- Work in jobs that required harder to attain skills
- Work more hours
- Have more years of recent, uninterrupted experience with their current
employer
- Are absent less often from work
- Are more willing to relocate and travel extensively on the job
- Have higher career goals to begin with
Reasons for Gender Wage Gap
• differences in occupations, qualifications and experience
• differences in number of hours worked
• differences in industries and firms
o STEM?
• differences in union membership
o Union = earn higher pay
• presence of discrimination
• Women don’t negotiate (don’t ask)
• Occupational segregation
• The nature of the male jobs are usually in bigger companies = able to pay more
Pay Equity Legislation
• intended to redress the portion of the wage gap assumed to be due to discrimination,
through comparison of male- and female-dominated jobs
• four job evaluation factors required:
o skill,
o effort,
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o responsibility,
o working conditions
• compare male and female job classes:
o job to job method
o proportional value/wage line method
o proxy comparison method
Four distinct phases in pay equity legislation:
• Stage 1: Equal pay for equal work
• Stage 2: Equal pay for similar or substantially similar work
• Stage 3: Equal pay for work of equal value (complaint-based)
• Stage 4: Pay equity (proactive)
Wages and appearances
• Beauty = Not pretty = less pay
• Weight = Fat = less pay
• Height = Height = pay more but only for men
Four Universal Compensable Factor
1. Skill
o Experience, training, education, and ability as measured by job performance
requirements
2. Effort
o Mental or physical, the degree of effort actually performed on the job
3. Responsibly
o The degree of accountability required in the job performance
4. Working conditions
o The physical surroundings and hazards of a job; inside/outside, heat/cold, and
poor ventilation
Pay Equity at the Federal Level
• The Trudeau government will bring in legislation in 2018 to compel all employers in
federally regulated sectors to ensure men and women get equal pay for work of equal
value.
o ill take a poatie appoah to pa euit,
o focused on helping employers comply with the law rather than forcing
employees to lodge complaints about discriminatory wages.
• forcing workers to file complaints/go to court to get equal pay = udesoe, ostl
ad ufai to okes.
Worksharing
• A redistribution of given amounts of work, EI benefits and leisure aimed at avoiding
temporary layoffs.
• Program introduced in Canada 1982 as a special feature of employment insurance (EI).
• Criteria:
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find more resources at oneclass.com
Document Summary
Chapter twelve - the roles of governments and unions in. Government as part of the employment relationship: government is a key stakeholder in compensation decision making. Effect of government on supply of & demand for workers: demand, government a big employer: federal, provincial & municipal. Indirectly affects labor demand through its purchases and policy decisions. If they buy something, those company will need to hire ppl to make stuff to sell to the gov: demand of labor, min wage. Supply: affects labor supply through legislation, min age to work etc, type of certification needed for different work, licensing requirements restricts labour supply. No one can give you less than that. Human rights laws: based on charter of human rights and freedoms in canadian constitution, equal treatment in employment and opportunity for employment regardless of race, (cid:272)olou(cid:396), (cid:396)eligio(cid:374), se(cid:454) , prohibit harassment in the workplace. Work in jobs that required harder to attain skills.
