Question Period Note: Pay Equity

The Government of Canada’s commitment to ensure men and women receive equal pay for work of equal value.

•Canadians expect women to be full participants in the economic, social, and democratic life of our country and the Government of Canada is committed to creating an inclusive public service where women receive equal pay for work of equal value.
•With the coming into force of the Pay Equity Act, TBS is working with bargaining agents and employee representatives to establish a pay equity committee and to develop pay equity plans that identify gaps between the compensation of jobs held mostly by women and those held mostly by men that involve work of equal value.
•With pay equity plans in place, we will then systematically close any pay gaps that exist by increasing compensation for employees in predominantly female jobs not receiving equal pay for work of equal value.
•The Pay Equity Act has a clear process for all federally regulated employers to follow. Cost estimates will be part of future negotiations with bargaining agents. After negotiations, any pay equity costs will be released publicly.

With the coming into force of the Pay Equity Act on August 31, 2021, the Treasury Board of Canada Secretariat (TBS) is working with bargaining agents and employee representatives to develop a pay equity plan that identifies gaps between the compensation of jobs held mostly by women and those held mostly by men that involve work of equal value.

This plan will cover all employees in the core public administration of the federal public service with the exception of the Royal Canadian Mounted Police (RCMP). A separate pay equity plan will be developed for members of the RCMP.

Once these plans are in place, TBS will systematically close pay gaps by increasing the compensation of employees in predominantly female jobs not receiving equal pay for work of equal value.

Timing
The Pay Equity Act has a clear process for all employers to follow, including timelines to implement the Act. The Act requires employers to finalize pay equity plans within three years after the coming into force of the Act and to close pay gaps once the final pay equity plans are posted. Pay equity plans will then be updated every five years to close any new pay gaps that may have arisen.

Previous Regime
Before the new legislation came into force, the system for public service pay equity complaints was under the Canadian Human Rights Act.

The Government is managing its response to existing pay equity complaints filed under the Canadian Human Rights Act, to the extent possible, in a way that is aligned with its agenda for pay equity reform. This includes taking measures to expedite pay equity litigation, reach negotiated settlements whenever warranted, and use informal dispute resolution.

The Treasury Board Secretariat and the Association of Canadian Financial Officers (ACFO) have agreed to undertake a study to help resolve a 2016 pay equity complaint concerning employees in the Financial Management group. The joint study is presently underway.

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