After a 'Sale of Business'

After a sale of business, a new plan (or plans where there are bargaining units) may have to be prepared and posted if existing ones no longer cover the job classes to which they apply and are no longer appropriate. For example, organizations often experience major changes after a sale:

restructuring of/or new departments;
new jobs in new areas;
new products, services or manufacturing processes, etc.

Developing a new plan

The process of achieving pay equity again and developing a new plan is like the one STC followed at the beginning:

determining the employer and the establishment(s);
determining job classes and evaluating them;
doing Job-to-Job comparisons and Proportional Value if required;
preparing, posting and implementing new pay equity plans (no phase-in of adjustments is allowed in this situation - the date of sale is the pay equity adjustment date).

Caution

In a sale or merger situation:

pay equity rates in new plan(s) may be different than in the old plan(s);
a sale of business or merger cannot be used to roll back or lower pay equity rates;
changes to job rates need to be substantiated;
an employer should show that the pay equity process was followed.

Deadlines

There is no deadline for preparing a plan after a sale of business. However, employees can complain to the Pay Equity Commission that a previous plan is no longer appropriate. A Review Officer from the Commission would be assigned to investigate.

Last modified: April 7, 2008