The Space Toy Co.

Pay Equity Plan
Amended for Proportional Value

The Pay Equity Act was amended on July 1, 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 1, 1991 is amended as follows:

Female job classes without male job comparators:

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

Representative group of male job classes:

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

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 calculations:

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.

Results:

Adjustments:

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 1, 1994, retroactive to January 1, 1993, as required by the Act.

Objection period for non-union employees under the Pay Equity Act:

For further information:

Contact ____________________________ with the Pay Equity Committee. Or call the Pay Equity Commission at 1-800-387-8813.