PAY EQUITY PLAN
AMENDED FOR PROPORTIONAL VALUE
The Pay Equity Act was amended on July 1, 1993. The amendments require that the proportional value comparison 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, 1993 is amended as follows:
Female job classes with male comparators
The job-to-job comparison method was used to achieve pay equity for the following job classes:
- Accounting Supervisor
- Administrative Assistant
Female job classes without male comparators
The proportional value comparison method was used to achieve pay equity for the following female job classes:
- Accounting Clerk
- Customer Service Clerk
- Marketing Coordinator
- Receptionist
- Secretary
Representative group of male job classes
The following male job classes were used as the representative group of male job classes when applying the proportional value method:
- Accountant
- Controller
- Market Assistant
- Marketing Manager
- Programmer
- Sales Representative
- Sales Manager
- Shipper/Receiver
- Warehouse Manager
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 based on the following factors and subfactors:
For example, while a secretary's job may require less physical effort and have better working conditions than a custodian's job, the secretary's job may require more responsibility, mental effort and skill. If this is the case, the overall value of the secretary's job could be the same as the custodian's and should be paid at least the same.
| Factors | Subfactors |
|---|---|
| Skill (30%) | Knowledge (10%) Problem-solving/judgement (12%) Interpersonal skills/contacts (8%) |
| Effort (25%) | Mental effort (15%) Physical effort (10%) |
| Responsibility (35%) | Human resources (12%) Financial resources (8%) Information resources (10%) Material resources (5%) |
| Working Conditions (10%) | Environment (10%) |
Evaluations were carried out by a committee.
Proportional value comparisons 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 these male job classes.
A statistical method called regression analysis was used to determine the relationship between the value of male job classes and their job rates. This produced a formula that was then used to calculate pay equity job rates for female job classes.
Pay equity is achieved when the female job class is paid the 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.
| Job class | *Value | *Present job rate | *Pay equity job rate | Adjustment required |
|---|---|---|---|---|
| Accounting Clerk | 350 | $13.25 | $14.07 | $0.82 |
| Customer Service Clerk | 390 | $14.50 | $15.59 | $1.09 |
| Marketing Coordinator | 380 | $16.00 | $15.21 | $0.00 |
| Receptionist | 340 | $13.04 | $13.69 | $0.65 |
| Secretary | 400 | $14.72 | $15.97 | $1.25 |
Adjustments
The law requires that one percent (1%) of the 1993 payroll be spent on pay equity adjustments in 1994. Female job classes requiring pay equity adjustments under the job-to-job comparison method will receive the full increase on January 1, 1994. This was previously committed to in the original pay equity plan posted on January 1, 1993. The total amount of the adjustments for these female job classes amounted to less than 1% of payroll.
Female job classes requiring pay equity adjustments under the proportional value method will have their pay equity increases phased in. The unused portion of the 1% of 1993 payroll will be used toward 1994 proportional value adjustments.
The first adjustment will be paid on January 1, 1994 as follows:
| Job Class | *Present Rate | *1994 Adjustment | *Adjusted Rate 1994 | *Remaining Adjustment |
|---|---|---|---|---|
| Accounting Clerk | $13.25 | $0.62 | $13.87 | $0.20 |
| Customer Service Clerk | $14.50 | $0.60 | $15.10 | $0.49 |
| Receptionist | $13.04 | $0.65 | $13.69 | $0.00 |
| Secretary | $14.72 | $0.57 | $15.29 | $0.68 |
For further information, contact John Smith, Controller.
* This information is optional.
How do I get more help or information?
We are here to help. We can answer your questions by e-mail at pecinfo.pecinfo@ontario.ca or by phone at (416) 314-1896, or toll-free at 1-800-387-8813. You can also register for a free seminar.
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The Pay Equity Commission
This fact sheet is for information only, and is 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.
ISBN: 0-7794-9771-6
