Pay Equity Act: Are You Ready?

Posted by THRSC Atlantic on May 19, 2023

If you are a federally regulated trucking company with an average of 10 or more employees, you may already be aware that you are subject to the Pay Equity Act of Canada which came into force on August 21, 2021. You may also be aware that to be compliant under this Act there are certain steps you must follow and deadlines you must meet. At first glance your reaction to this may have been more of a concern over the time, resources, and logistics to be compliant as opposed to applauding the government’s efforts to close the gender wage gap in Canada. You are not alone. If I have learned anything from being in the trucking industry, I know that in our businesses, time is scarce, and resources are limited. As you try daily to keep your business moving in a difficult economy, you are faced with severe labour shortages. Creating and posting a pay equity plan by September 24, 2024, may not seem to be an immediate priority as you deal with shrinking profit margins and empty seats in 2023. So why make this a priority today?

Nanos Research conducted a survey on behalf of the Canadian Trucking Alliance in 2022 of 36 senior executives in Canada’s trucking industry. Combined, they represented companies that employed over 40, 000 full and part-time employees. Thirty-four of the 36 executives listed the labour shortage as the top issue of concern for the trucking industry. Now consider this: 47.5% of the working population in Canada is female, yet only 7.4% of the total population in the trades, transportation and equipment operator sector are female. The question must be asked, “What are you doing to attract, retain and advance this underutilized source of workers that continues to allude our industry?”

Traditionally, most women in trucking worked in more supportive and administrative roles. They worked in reception, administration, including human resources, and accounting roles. Although these positions were invaluable to the financial success of the businesses for whom they worked, they were paid less than comparable positions in operations, sales, and repairs that men traditionally occupied. This has no doubt contributed to an historical male dominated industry where women have been underrepresented and felt undervalued.

Today things are slowly but surely changing. Women are breaking barriers and overseeing operations, business development and entering the C-Suite in trucking companies across the country. And, while these trail blazers continue to inspire other women in the working population as to what is possible in our industry, there is still work that needs to be done. Pay equity is more than paying individuals who do the same job, the same pay. Pay equity is about paying individuals equal pay for work of equal value. This means that if two individuals’ hold different jobs, but each contributes equal value to the organization’s operations, those two positions should receive equal pay.

Key Timelines and Resources

August 21, 2021: The Pay Equity Act came into force. This Act can be found at https://laws-lois.justice.gc.ca/eng/acts/p-4.2/page-1.html

November 1, 2021:

• Employers have 60 days after becoming subject to the Act to notify their employees of their obligation to create a pay equity plan and, if applicable, to set up a pay equity committee. If you were subject to the Act when it came into force, you were suppose to notify your employees by November 1, 2021. Notification templates can be found at https://www.payequitychrc.ca/en/templates
• If you have 10 -99 employees, none of whom are unionized, the employer is responsible to undertake the pay equity process. (Some exceptions may apply)
• If you employ an average of 100 or more employees, you were then required to establish a pay equity committee that would be responsible for the pay equity process.
• If you have 10-99 employees, some of whom are unionized, you are required to establish a pay equity committee.
• In order to understand how to do an employee average account in order to ensure you meet your requirements under this Act, visit : https://www.payequitychrc.ca/en/about-act/employer-responsibilities#section-3
• For more information about pay equity committees, visit https://www.payequitychrc.ca/en/milestone-1-establish-foundation#section-3
• We understand that the question of confidentiality is a sensitive one for many employers. That is why under the Act s. 24(1) members of the pay equity committee are required to treat as confidential any information “specified by the employer, employee or bargaining agent as being confidential.” There are measures in the Act to protect the confidentiality of information, and there are recourses for individuals who believe that there has been a breach or a leak of information that has been designated as confidential. If employers have concerns over sharing confidential information with a pay equity committee, please consult CHRC’s IPGs on the Requirement to keep information confidential and on Sharing the information with Pay Equity Committee members. Employers and pay equity committees are encouraged to use tools to ensure that members are aware of their confidentiality obligations.

November 1, 2021 – September 3, 2024:

• During this timeframe you are expected to develop your pay equity plan, and by September 3, 2024, post this plan to your employees as well as any notification of increases. As this process will take time and resources, employers who have not already started to engage in this process, are advised to start immediately.
• The CHRC (Canadian Human Rights Commission) offers a comprehensive step by step process in how to build your pay equity plan. You can find this at payequitychrc.ca

September 3, 2024: Employers must post their final Pay Equity plan and notices of any increases by this date.

September 4, 2024: Any increase in compensation will begin at this date and can be phased in if applicable.

June 30, 2025: File your first annual statement with the Pay Equity Commissioner by this date.

If you have any specific questions pertaining to this topic, please do not hesitate to contact THRSC Atlantic office for further guidance and support.