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FEWO Committee Report

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The Honourable Hedy Fry

Chair of the Standing Committee on the Status of Women

Sixth Floor, 131 Queen Street

House of Commons

Ottawa, Ontario

KLA 0A6



Dear Ms. Fry:

Pursuant to Standing Order 109 of the House of Commons, we are pleased, on behalf of the Government of Canada, to respond to the recommendations contained in Moving Forward on the Pay Equity Task Force Recommendations, the Third Report of the Standing Committee on the Status of Women tabled in the House of Commons on March 25, 2009.

The Government respects the principle of equal pay for work of equal value.  As members of the Committee are aware, there is pay equity legislation applicable to both the federal public and private sectors already in place.

In 2001, the Pay Equity Task Force was mandated to conduct an in-depth review of the existing federal pay equity legislation.  However, the Pay Equity Task Force’s comprehensive 2004 report has resulted in little agreement amongst stakeholders on how to implement its 113 recommendations.  The Government continues to work with stakeholders towards a more effective approach to pay equity.

The Government has taken action that we believe leads to positive results for working women in the federal jurisdiction.

With respect to the federally regulated private sector, in 2006, this Government established the Pay Equity Program to implement proactive strategies to complement the pay equity provisions in the Canadian Human Rights Act that govern the federally regulated private sector. The Pay Equity Program is fulfilling its mandate through a three-pronged approach which includes:

  • Promotion and education to help workplace parties understand the law and issues related to pay equity.
  • Specialized mediation services – To assist employers and unions in drafting agreements or implementing pay equity plans.
  • Compliance monitoring - To ensure that employers are meeting their pay equity obligations.

We are pleased to report that the Pay Equity Program is helping federally regulated employers achieve pay equity through these non-legislative measures.  Since it was established in 2006, the Pay Equity Program has created and distributed information on pay equity that outlines the rights and obligations of all parties with respect to pay equity, and is in the process of developing additional educational materials for distribution to employers, employees and unions. It has also provided training to labour inspectors and mediators on the enforcement of pay equity.

The Pay Equity Program continues to provide support and resources to federally regulated employers to ensure that they understand their workplace pay equity obligations.  A strategy to make compliance monitoring more targeted has also been developed to ensure that employers who need the most assistance in complying with their pay equity obligations receive special attention. The effectiveness of these non-legislative measures will be part of discussions with stakeholders with respect to ongoing improvements to the program.

With respect to pay equity for the public sector, the Government is pleased to have introduced the Public Sector Equitable Compensation Act. The Act renews the Government's commitment to equal pay for work of equal value and sets out a new, proactive approach to ensure compensation is equitable.  The Act makes employers and bargaining agents jointly accountable for ensuring that employees' wages are equitable through the collective bargaining process.  For non-unionized employees, the Act sets out a rigorous process to ensure employers address these issues in a timely way.

Further, the new Act strengthens transparency and accountability by requiring employers and bargaining agents to provide reports to employees explaining what has been done to ensure equitable compensation.  The Act will be brought into force once the regulations necessary to implement the Act have been completed.  The Government anticipates this will be in 2011.

We thank the Standing Committee for their continued interest in pay equity.



Sincerely,



Rona Ambrose, P.C., M.P. 

Minister of Labour  

                                                               

Rob Nicholson, P.C., M.P.

Minister of Justice, Attorney General of Canada