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Pay Equity Plan: Amended for Proportional Value

​​​​​The Pay Equity Act was amended on July 1st, ​​1993. The amendments required that the Proportional Value method be applied to all female job classes that could not achieve pay equity using the Job-to-Job comparison method.

As a result, the pay equity plan posted on January 1st, 1991 is amended as follows:

Female Job Classes without Male Job Co​​​mparators:

The Proportional Value method was used to achieve pay equity for the following female job classes, unmatched under the Job-to-Job approach:

  • Customer Service Clerk
  • Accounting Clerk
  • Receptionist/Typist

Representative Group of Mal​​​e Job Classes:

The following jobs were used as the representative group of male job classes when applying the Proportional Value method:

  • Sales Representative
  • Financial Analyst​
  • Service/Systems Technician

Method ​of Comparison:

A gender neutral job comparison system was used to measure the value of each job class. Points were assigned to each job class and values determined for all jobs based on the factors of Skill, Effort, Responsibility and Working conditions.

Evaluations were carried out by a committee.

Proportional Value Method and Cal​​​cul​ations:

The job value and job rates of all male job classes were plotted on a graph. A representative group of male job classes was selected from this male job class group.

A statistical method called Regression Analysis was used to determine the relationship between the value of the male jobs and their job rates. This produced a formula which was then used to calculate pay equity job rates for female job classes.

Pay equity is achieved when the female job classes are paid the Proportional Value pay equity job rate. Female job classes that are paid less than the pay equity job rate receive an adjustment until pay equity is achieved.

Female job classes that are paid more than the pay equity job rate do not receive a Proportional Value adjustment.

Re​sults:

Job ClassValuePresent Job RatePay Equity Job RateAdjustment Required
Customer Service Clerk39117.0017.850.85
Accounting Clerk33016.0015.10nil
Receptionist/Typist28215.0012.93nil

Adjust​​ments:

The Act requires that 1% of the 1993 payroll be spent on pay equity adjustments in 1994.

The total amount of the adjustments amounted to less than 1% of payroll, so the full adjustment was paid immediately to the single female job class - Customer Service Clerk - that required an adjustment.

The adjustment was paid on January 1st, 1994, retroactive to January 1st, 1993, as required by the Act.

Objection Period for Non-Union Employees Under the Pay Equity Act:

  • As of this posting date, January 1st, 1994, employees have 90 days to raise concerns about the plan to the Pay Equity Committee.
  • Following this 90-day period, the company will have 7 days to post any revisions made in response to this plan or post a notice stating there won't be any revisions, if that is the case..
  • After this, any employee has 30 days to bring an objection to the Pay Equity Commission if there are still unresolved issues.
  • If no objection is received by the Pay Equity Commission by the end of this 90-7-30 day appeal period, this plan is deemed approved and will be implemented.

For Further Info​rmation:

Contact the Pay Equity Office:

Toll­free: 1 800-387-8813

(416) 314-1896

TTY Toll­free: 1 855-253-8333

(416) 327-8599

Facsimile: (416) 314-8741

We hope that by reading through this Proportional Value--Regression Analysis Overview and by using the weighting formula interactive worksheet, you have gained a better understanding of the pay equity process.

We invite your ideas, suggestions and comments. Please help us improve your learning experience by telling us what you need and sending us your comments to payequitycommission@ontario.ca

 

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