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Disclaimer: This workbook and attachments are for information only, and are not intended to restrict Review Officers or the Pay Equity Hearings Tribunal in their determination of matters. Refer to the Pay Equity Act for exact interpretation.
On January 1, 1987 the Pay Equity Act came into effect. When the law was passed it was recognized that existing companies would have to modify their compensation practices to bring them into compliance with the Act. The process that these companies had to follow is laid out in Part 2 of the Act.
Part 2 applies to:
- public sector employers who had employees as of July 1, 1993
- private sector employers who had 100+ employees as of December 31, 1987
Part 2 sets out timeframes during which these companies were expected to implement pay equity in their establishments and companies were given a phase in period to make adjustments to job rates if required. The Pay Equity Office recommends that you consult the Act to determine the legal requirements for your organization. You may find our Guide to Interpreting Ontario's Pay Equity Act a useful tool in understanding the Act.
The Space Toy Company (STC) is a fictitious, private sector company that was required to follow the process in Part 2. This case study is written in the present tense and sets out the actions taken by the company to implement pay equity during the implementation period.
Individuals using this case study today are cautioned that the implementation periods have now long passed and there is no phase in period for making adjustments. Any adjustments to job rates found to be owing are now retroactive to the date when your company should have implemented pay equity.
If your company came into existence after January 1, 1988 or if your company had fewer than 100 Employees as of December 31, 1987, Part 2 does not apply to you and there is no requirement to do a pay equity plan. Please refer to other resources on our website to assist you in complying with the Act.
The case study sets out several activities that are not required by the Act. These activities have been shown to be of value to employers, unions and employees as they work through the pay equity process in their establishments.
Purpose of this Document
This document illustrates how the Pay Equity Act was applied and continues to impact on the Space Toy Company, a fictitious organization created for the purposes of this case study. The study explains how and why decisions are made at each step of the process and how pay equity is being maintained.
You can save this document to your hard drive and use it as a learning tool, for note-taking, and to record your organization's pay equity history, decisions and maintenance requirements for your establishment(s).
About the Space Toy Company (1987)
The Space Toy Company manufactures miniature and mid-size space and galactic toys for the 4–12 year-old market. This small Ontario-based company has production facilities in Belleville, Kingston and Sarnia, as well as in Drummondville, Quebec.
The Pay Equity Act covers all Ontario employees of this employer only – employees in the province of Quebec are covered by that province's pay equity legislation.
The Space Toy Company's Head Office is located on Dundas St. West in Toronto. The two small plants in Belleville and Kingston have been in operation for 15 years. There is also a separate 10-person office in downtown Kingston. Sarnia's state-of-the-art facility utilizes high-tech digital processes and has an active e-commerce department.
Plans are underway to open a new plant in Windsor in 2002. Management at STC is aware that when the Windsor facility opens, pay equity has to be achieved immediately for those employees. The company has pay equity implementation and maintenance plans underway for the new Windsor plant.
Benefits of this Document
Pay Equity workshop attendees often tell the Commission that they have not kept good records of initial pay equity decisions, a copy of the plan, or how pay equity has continued to be applied over the years subsequent to their first pay equity process.
If record-keeping is a problem in your organization, this document may be of help as a learning tool copied permanently to your computer and as an electronic folder in which to keep your pay equity information.
There is no statute of limitations on the Pay Equity Act. A complaint can be brought to the Pay Equity Commission at any time. Keeping good and accurate records will ensure that any concerns brought forward by employees can be dealt with promptly and with a minimum of conflict. Maintaining good pay equity records is simply good business for your organization.
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