THE FUTURE OF PAY EQUITY ENFORCEMENT
IN CANADA

BY MARY CORNISH & FAY FARADAY

Cavalluzzo Hayes Shilton McIntyre & Cornish

Prepared for the LEAF National Forum on Equality Rights,
Transforming Women's Future: Equality Rights in the New Century
4-7 November 1999, in Vancouver, B.C.

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

PART I: INTRODUCTION
As we look forward to the twenty-first century, women must continue the fight for fair and non-discriminatory wages. Although there are many laws across the country which are intended to eradicate wage discrimination, many women have not yet achieved pay equity. Many women continue to work for discriminatory pay.

This paper focuses on strategies for pursuing pay equity for women across Canada. It focuses on how to use old legislation in new ways to achieve pay equity and it addresses strategies for combatting new impediments to enforcing existing pay equity entitlements.

Before addressing the future of pay equity enforcement, though, it is useful to have a snap shot of where we are at right now: what laws do we have now? and what kinds of remedies are available? Part II of this paper, then, reviews of the traditional laws and enforcement procedures for seeking pay equity. Part III addresses non-traditional laws and enforcement strategies, such as grievances under collective agreement, unfair labour practice complaints before labour relations boards and Charter of Rights litigation to achieve pay equity. Finally, Part IV addresses the need to continue efforts in the political sphere to keep the issue of pay equity on the political agenda and to combat the anti-equity ideology which has risen in combination with the ideology of deficit-reduction at all costs.

Although recognizing that women who work in non-unionized workplaces have particular difficulty in achieving pay equity, this paper addresses tools that can be used primarily by unions. A separate presentation in connection with this panel addresses the circumstances of women in non-unionized workplaces.

PART II: THE STATUS OF PAY EQUITY ENFORCEMENT AT THE END OF THE TWENTIETH CENTURY
This section of the paper addresses the traditional analyses for addressing pay equity and the use of traditional forms of adjudication to remedy pay equity. 

A. The Nature of the Pay Equity Problem

The nature of the wage discrimination problem can be stated simply: "Women's work" is paid less than "men's work". Women are paid approximately 70 cents on the dollar compared to men's wages.

But beyond this simple disparity, when considering what equity-seeking strategy to pursue, it is important to remember that

  • for the most part, men and women do different kinds of work -- they largely do not perform the same jobs;
  • also, because of occupational segregation, women and men often work in different workplaces; and
  • women's work is most seriously undervalued in establishments where women are performing traditionally female work in predominantly or exclusively female workplaces, such as nursing homes, day cares, and shelters.

The occupational segregation of labour both at a systemic level and in an individual workplace has an enormous impact on the possible strategies for identifying wage discrimination. This segregation controls what choices women have for accessing remedial legislation and it controls what comparisons they can make to male (i.e., "equitable") wages.

The enforcement strategy that one choses to pursue pay equity will clearly be driven by the composition of the workforce and the particular establishment in question. But it is useful to keep the fundamental structure of wage discrimination in mind because ultimately the legal frameworks and adjudicative bodies which are now used to achieve equal pay may not be a good match for the underlying problem. Our strategies for seeking equity should address this shortcoming.

B. What is Equity? Three Definitions of Equality

A review of laws across Canada reveals that there are basically three adjudicative bodies that are specifically charged with addressing wage discrimination complaints:

  1. pay equity commissions or adjudicators under pay equity statutes;
  2. human rights commissions; and
  3. labour or employment standards adjudicators. 

When considering where to go for equity, it is necessary to be aware that each of these three bodies defines fair wages differently. Not all conceptions of "equality" are equal. The existing statutes set out three different definitions of fair wages.

1. Equal Pay for Equal Work

The first definition of fair wages is equal pay for equal work.

Under this definition, equal pay is achieved if men and women are paid the same and they work

  • in the same establishment
  • under the same or similar working conditions
  • performing the same, similar or substantially similar work

This definition of fair wages is found in

  • several labour standards or employment standards statutes across the country;
  • and also in some of the provincial human rights codes, particularly in Newfoundland, PEI, Alberta and British Columbia.

2. Equal Pay for Work of Equal Value

The second definition of fair wages is equal pay for work of equal value. This definition focuses on the value of the work, not on the kind of work done. It enables women to make comparisons between male- and female-dominated job classes and does not require that men and women be performing similar types of work. For example, a comparison can be made between the job classes of nurse and police officer.

Equal pay for work of equal value provides broader access to equity because it addresses the reality of occupational segregation. The measure of equality is whether the value of the work men and women do is similar or comparable. If so, they should be paid the same.

The equal pay for work of equal value definition is found in

  • the various provincial pay equity statutes;
  • the federal Human Rights Act's Equal Wage Guidelines; and
  • the equal wage provision in s. 182 of the Canada Labour Code.

Where this paper uses the term "pay equity", it refers to this definition of equal pay for work of equal value.

3. General anti-discrimination clauses

The third definition is found in general statutory prohibitions against discrimination in employment. For example, s. 5(1) of the Ontario Human Rights Code states as follows:

Every person has a right to equal treatment with respect to employment without discrimination because of ... sex ...

This definition, phrased in various ways, is found in several provincial human rights statutes, specifically Saskatchewan, Manitoba, Ontario, New Brunswick and Nova Scotia. This definition does not prescribe a specific formula for identifying wage discrimination, but clearly it contemplates that sex discrimination in pay is prohibited. As is addressed in more detail below, this may be a useful tool for those seeking pay equity either in the absence of a pay equity statute or in circumstances where other legislation is too narrow or falls short of providing full pay equity.

C. Limitations of the Existing Laws

Some of the barriers to achieving equity are found directly in the legislation that is currently on the books. These limitations fall into at least three broad categories:

  • who is covered by the statute;
  • what definition of fair wages applies under the statute; and
  • how difficult it is to engage the enforcement mechanisms.

1. Pay Equity Statutes

The major advantage of pay equity statutes is clearly that they impose a pro-active obligation upon employers to achieve pay equity. They require bargaining agents and employers to negotiate and achieve comprehensive pay equity plans and they provide access to a statutory mechanism for enforcing and monitoring pay equity.

For example, in Ontario the Pay Equity Commission is entrusted with public education, investigating complaints, assisting the parties to settle disputes and to achieve pay equity plans, making orders, and referring disputes to the Tribunal for formal adjudication. Either a bargaining agent or an employer can also request a formal hearing before the Tribunal.

There are, however, structural limitations to pay equity statutes:

a. Scope of Coverage

The most serious limitation is the scope of coverage of the existing laws. With the exception of Ontario and Quebec, pay equity statutes apply exclusively in the public sector and broader public sector. In most Canadian jurisdictions, the private sector has no pro-active obligation to achieve pay equity. Even in Ontario, where the private sector is generally covered, private sector workplaces with fewer than ten employees are excluded from the law's application.

Most pay equity laws, then, leave many workers with no access to these pay equity rights and remedies. These workers are instead forced to rely on complaints-driven mechanisms for achieving equity such as those available under human rights and employment standards legislation.

b. Definition of Fair Wages

For workers who are covered by pay equity statutes, one major advantage is that these laws apply the highest definition of fair wages: equal pay for work of equal value. One major disadvantage, though, is that women in a large number of workplaces covered by these statutes cannot produce the appropriate male job comparators to allow them to access fair wages using this definition.

Consider the following examples,

  • To use the comparison method in the New Brunswick and Manitoba pay equity statutes, each female and each male job class must have at least 10 incumbents. This effectively precludes access for small broader public sector workplaces and for female dominated workplaces.
  • Most of the statutes require a direct comparison between a female job and a male job of comparable value. Given the nature of occupational segregation, even where a workplace has both male and female job classes, they will not necessarily be at the same level. For example, in a nursing home the male job classes of janitor and director will be at the bottom and top of the wage scale but the female job classes such as health care aide and nurse will be in between and will not be able to find a direct comparator.
    Only the federal, Ontario and Quebec statutes, and possibly the Manitoba statute which is ambiguously worded, allow proportional value comparisons or indirect comparisons between general male and female wage lines.
  • With the exception of Quebec and Ontario's broader public sector, pay equity can only be achieved where there are both male and female jobs within the same establishment. Again female dominated workplaces are left with no access to this definition of fair wages.

c. Difficulties with Enforcement

A further structural limitation under the pay equity statutes can lie in the difficulty and complexity of their enforcement procedures. For example, in Ontario where the Pay Equity Commission is charged with investigating and assisting to settle a complaint, it can take a very long time to get any form of order and so it takes even longer to get referred to the tribunal for a final adjudication. Since it is only a Tribunal order which can be enforced as a practical matter, when faced with a reluctant employer, it becomes very difficult to enforce rights in a timely manner. The Ontario Commission has recently indicated that it intends to streamline its procedures for issuing orders to address the issue of delay but at the present time delay remains a reality of seeking enforcement.

2. Human Rights Statutes

Pay equity claims can also be filed with provincial and federal human rights commissions and tribunals, although this route is rarely used. However, human rights statutes have the advantage of applying to both the public and private sector and have no exclusions for smaller workplaces.

a. Difficulties with Enforcement

Difficulties with human rights enforcement are well known and exist across Canada. Apart from the backlogs and lengthy delays, some commissions have authority to decline to deal with a complaint if they think it should be more appropriately dealt with under another process, such as a grievance process mandated by labour relations laws. Thus, it may not always be possible for parties to control the process. A party may try to file a complaint only to have the commission decline to address it.

There is also an on-going debate in the case law about whether a union has standing to file a complaint about pay equity. The opposing views are represented by the Saskatchewan Court of Appeal in Canada Safeway Ltd. v. Saskatchewan (Human Rights Commission) (1997), 150 D.L.R. (4th) 207 and the Federal Court of Appeal in Communications, Energy and Paperworkers Union of Canada v. Bell Canada (1998), 167 D.L.R. (4th) 432 (F.C.A.).

The Saskatchewan Court of Appeal in Canada Safeway Ltd. v. Saskatchewan in a 2-1 decision ruled that the union could neither file a pay equity complaint under the provincial human rights law in its own name nor support an individual, Barbara Hall, in her class action complaint regarding systemic pay discrimination. The Court based its decision in part on the SCC judgment in Central Okanagan School District No. 23 v. Renaud (1992), 95 D.L.R. (4th) 577 (S.C.C.) which held that a union can be jointly liable for discrimination where it signed the collective agreement containing the discriminatory provisions, here the disputed wage schedule.

The Federal Court Trial Division in CEP v. Bell Canada followed a similar analysis but in November 1998 the Federal Court of Appeal ruled that unions can bring pay equity complaints to the federal commission: CEP v. Bell Canada [1998] F.C.J. No. 312 (F.C.T.D.), reversed (1998), 167 D.L.R. (4th) 432(F.C.A.). The Federal Court of Appeal found that

  • The Commission's accepted practice of granting unions status as a "group of individuals" to file a complaint was not questioned in the appeal.
  • The alleged victims of discrimination had endorsed the actions of their unions throughout and the Court held that it was not necessary in the circumstances to require consent of the individuals in the bargaining unit. This leaves open however the question of whether it is ever necessary to have such employee consent.
  • With respect to joint liability for wage discrimination, the Court held that a union does not need to force the question of equal wages to an impasse in bargaining before they can file a complaint on the issue. Moreover, under the specific language of the federal act, the employer alone is liable for discrimination in wages so the union cannot be barred from bringing a complaint on the analysis applied in Saskatchewan.

On 8 July 1999, Bell Canada was denied leave to appeal to the Supreme Court of Canada.

Nevertheless, the issue has not been finally resolved. The legal reasoning in the Federal Court decision is relatively narrow and is closely tied to the language in the federal statute so the issue may still arise in other jurisdictions.

There are a number of reasons why trade unions may want to act as complainants in wage discrimination complaints where there is no effective pro-active pay equity law and there are a number of principled arguments for why they should properly be able to act as complainants:

  • The union is by law the exclusive bargaining agent for its members. In this role, and given the evidence of widespread and systemic wage discrimination in Canadian workplaces, it is appropriate for the union to pursue systemic wage discrimination complaints. Filing a complaint is consistent with the union's mandate to represent the employees' rights and to secure the best possible working conditions for its members: see Canada Safeway v. Saskatchewan, supra, per Jackson J.A. dissenting at 275.
  • Because the union is the exclusive bargaining agent, it should not be necessary to seek consent from its members to represent their interests in relation to terms and conditions of employment. Requiring such consent undermines the fundamental premise of collective bargaining in Canada.
  • The fact that a union has signed a collective agreement should not automatically bar it from raising a human rights complaint in relation to that agreement. In the course of upholding a union's right to file a wage discrimination complaint, a Canadian Human Rights Tribunal held in Energy and Chemical Workers Local 916 v. Atomic Energy of Canada Ltd. (1984) 5 C.H.R.R. D/2066 at D/2070:

"While it is true that the company cannot set wage rates unilaterally, it does not necessarily follow that the parties are thereby equal. It is also true that the strike weapon is a strong one, and if the union had proceeded with the wage complaint through bargaining, it could have used this tool. However, we do not agree with the respondent that failure by the union to go this route has made them complicitous in setting discriminatory wage rates, particularly in light of the evidence already referred to" [regarding the union's attempts to negotiate fair wages in bargaining].

  • * Unionized employees should not be denied access to human rights commissions for systemic complaints on the basis that such matters can be addressed through collective bargaining. If a union was required to exhaust collective bargaining options and grievance procedures before it could make a complaint to the human rights commission, this would severely restrict union members' access to the rights and remedies in the human rights laws which are considered almost constitutional in nature. See Atomic Energy, supra at p. D/2068-2069.

b. Definition of Fair Wages

Human rights statutes across Canada do not apply a uniform test for defining equality in wages.

As noted above, the human rights codes in Newfoundland, PEI, Alberta and British Columbia apply the most restrictive definition of equal pay for the same or similar work. These codes then do not assist where men and women do different kinds of jobs even if they are of similar value.

However, the human rights codes in Saskatchewan, Manitoba, Ontario, New Brunswick and Nova Scotia apply a general prohibition against sex discrimination in employment. This general anti-discrimination clause should be able to provide access to equal pay for work of equal value.

In the situation of a female-dominated workplace, these open-ended provisions could also provide the opportunity to argue that freedom from discrimination requires that proxy comparisons be made outside of a predominantly female workplace. In SEIU Local 204's successful Charter challenge to the repeal of pay equity legislation in Ontario, the Ontario Court General Division held that the proxy method of comparison jobs "an appropriate method of quantifying the extent of gender-based systemic wage discrimination" in the broader public sector: see SEIU Local 204 v. Ontario (Attorney General) (1997), 35 O.R. (3d) 508 (Gen. Div.) at 532. Private sector employees who are excluded from using the proxy method under Ontario's Pay Equity Act could try filing a complaint under the Human Rights Code and then arguing that the proxy method is the necessary tool to identify and quantify the wage discrimination in the public sector.

c. Human Rights Decisions on Pay Equity

There is case law to support the use of these anti-discrimination clauses to secure pay equity.

The Ontario Divisional Court decision in Nishimura v. Ontario Human Rights Commission (1989), 70 O.R. (2d) 347 is on point. Prior to the enactment of the pay equity act, female advertising employees with the Toronto Star filed a wage discrimination complaint with the provincial human rights Commission. The Ontario Code has a general prohibition against discrimination. The female employees in this case were specifically seeking equal pay for work of equal value. The Commission ruled that it did not have jurisdiction to address equal pay for work of equal value. But the Divisional Court ruled otherwise. It held that

  • "the allegation of unequal pay for work of equal value can constitute sex discrimination contrary to ... the Code". The wording in the anti-discrimination clause "is very broad and the alleged discrimination fits within the definition of discrimination set forth ... in Andrews. It also falls within what is described as structural or systemic discrimination on the principles established in Simpson Sears, Action Travail and Robichaud."
  • The Court further held that the existence of the employment standards act and the provincial pay equity act did not remove the complaints from the jurisdiction of the Commission.
  • Finally, the Court held that the fact that the Human Rights Code did not contain technical standards for identifying pay equity "does not evidence a lack of legislative intent to have the Code apply in situations similar to the present case. The Commission will decide what standards are to apply within its mandate."

The second relevant decision from the Saskatchewan Court of Queen's Bench followed the analysis in Nishimura: Canada Safeway v. Saskatchewan Human Rights Commission [1999] S.J. No. 228(Sask. Q.B.). This case is "Round Two" of the pay equity complaint against Safeway.

In December 1997, after the Court of Appeal's decision striking Barbara Hall's class action complaint, the Commission itself filed a class action complaint of wage discrimination naming both Safeway and the two unions, RWDSU and UFCW, as respondents. Safeway brought a motion to strike the complaint on the ground that the Commission has no jurisdiction under the Code to initiate or inquire into complaints grounded on the concepts of "pay equity" or "equal pay for work of equal value". They took the position that the Labour Standards Act already guaranteed equal pay for equal work and that this foreclosed any inquiry into a complaint founded on the broader concept of pay equity. The Court quoted from the headnote in Nishimura

The alleged discrimination falls both within the very broad wording of s. 4(1) of the Code and the definition of discrimination adopted by the Supreme Court of Canada. A broad and liberal construction is required in considering human rights legislation. With respect to the Code, it is not necessary to prove an intent to discriminate. A decision to dismiss as outside the jurisdiction of the commission should only be reached in the clearest of cases and the question of whether the very broad language of the Code includes structural and pay discrimination is a question to be decided by the Commission itself. The existence of the Employment Standards Act ... and the Pay Equity Act ... does not give rise to an inference that the legislature did not intend the Code to apply to equal pay for work of equal value complaints.

The Court of Queen's Bench then ruled that

... I do find the reasons for judgment persuasive insofar as they approve a means for determining if a particular employer's pay practices offend gender discrimination prohibitions.

Counsel for Canada Safeway dismisses Nishimura as "wrongly decided" but I am not so sure. ... It is for a board of inquiry, should one be appointed following the investigation, to decide whether facts established by the evidence constitute the kind of gender discrimination disallowed by the Code."

As a further note, in the same decision, the UFCW brought a motion seeking an order that, whether or not the Commission had jurisdiction to address pay equity, the matter should be deferred to arbitration under the applicable collective agreements. There were two branches to this argument.

  1. Arbitration provides an informal, expeditious and cost effective method of resolving workplace disputes.
  2. Proceeding before an arbitrator would avoid any allegation that the Commission was biased on the ground that the Commission which initiated and would investigate the complaint would also have authority to appoint the board of inquiry.

The Court dismissed this motion and held that where "the essential nature of the dispute is a human rights violation and not one which only involves a dispute by the parties concerning the application, violation or interpretation of the collective agreement," the Commission has authority to intervene and it cannot be prevented from pursuing its investigation.

These cases appear to establish that it is possible to pursue a claim for equal pay for work of equal value under a human rights law with a general prohibition against discrimination.

3. Employment Standards Legislation

The final and most "traditional" way to resolve complaints under employment or labour standards legislation which will be determined by an employment standards adjudicator.

Employment standards legislation has the advantage of applying to both the public and private sector. But these statutes have the disadvantage of using the most limited definition of fair wages -- equal pay for equal work. To access rights and remedies under these statutes, it is necessary to have men and women performing the same work in the same establishment but being paid at different rates.

a. Advantages to using Employment Standards Legislation

Although often overlooked, employment standards applications do have some utility. They can help close gaps within a job classification. And they may be able to help individual employees or groups of employees achieve a limited measure of equality before a full pay equity plan has been negotiated or where there is no access to pay equity legislation. It is worth noting that the existence of the Pay Equity Act in Ontario has not removed from adjudicators the jurisdiction to consider complaints under the Employment Standards Act. As was held in Hamilton Board of Education at para. 35:

The Pay Equity Act, providing as it does for a form of "equal pay for work of equal value", may often apply in cases where section 32 might also come into play. At the risk of adopting shorthand expressions which fall short of capturing all the nuances of the statutes, it seems clear that where there is a failure to provide "equal pay for equal work", there will also be a failure to provide "equal pay for work of equal value", which may in turn raise questions under the Pay Equity Act. In such cases, it is no defence to a claim that the clear and immediate requirements of section 32 are not being met to say that there is a potential remedy over time under the Pay Equity Act. No doubt this complaint may have cast its shadow over the Employer's and the OSSTF's obligations under that Act, but that is of no consequence to this proceeding.

Filing a complaint with the Employment Standards Branch is sometimes enough to convince employers to negotiate seriously and to settle the matter without a full hearing. In this respect, it can be a useful strategy to consider.

b. Disadvantages to using Employment Standards Legislation

There are also limitations to using this approach. In Ontario, claims are very rarely made under the equal wages section (s. 32) and so labour standards adjudicators have little familiarity with the issue. In one recent case, Re Hamilton Board of Education (30 March 1998), the adjudicator took 6 years after the hearing to reach a decision in part because he "had inordinate difficulty analysing both the evidence and the issues, going beyond any difficulty which [he had] encountered in any other matter that [he could] recall".

Conclusions

Overall, the women who have the greatest difficulty in accessing rights to equal pay in the existing system are primarily

  • women working in non-unionized workplaces;
  • women working in the private sector; and
  • women working in predominantly female workplaces.

This paper turns now to consider alternative strategies which can be pursued to assist these and other women achieve pay equity.

PART III: STRATEGIES FOR USING NON-TRADITIONAL APPROACHES TO ACHIEVE PAY EQUITY
Where unions have not been possible to achieve pay equity using the traditional methods discussed above, what should unions do? What strategies should be considered for pushing the issue forward?

This paper considers the following options:

  • grievances under anti-discrimination provisions of collective agreements;
  • unfair labour practice complaints before labour relations boards; and
  • Charter of Rights litigation.

Can these options address the barriers to achieving equity identified earlier: specifically, lack of coverage under existing statutes, unduly narrow definitions of equality under the applicable statute, or difficulty in engaging the enforcement mechanisms?

A. Anti-Discrimination Grievances under Collective Agreements

Systemic discrimination grievances can be filed under the anti-discrimination clauses in collective agreements by arguing that the wage schedule is discriminatory to the extent that it fails to provide equal pay for work of equal value.

Arbitrators under many labour laws are able to interpret and apply human rights statutes and pay equity statutes. In Ontario the Labour Relations Act expressly states that an arbitrator has the power to interpret and apply human rights and other employment related statutes. Section 48(12)(j) of the Act states:

48. (12) An arbitrator or the chair of an arbitration board, as the case may be, has power,

(j) to interpret and apply human rights and other employment related statutes, despite any conflict between those statutes and the terms of the collective agreement.

The Canada Labour Code gives arbitrators even broader authority. Section 60(1)(a.1) gives arbitrators the power to interpret, apply and give relief in accordance with a statute relating to employment matters, whether or not there is a conflict between the statute and the collective agreement.

One of the first issues which will arise in bringing a pay equity grievance under an anti-discrimination provision is what test the arbitrator should use to measure whether pay equity exists. It could certainly be argued that the definition of equal pay for work of equal value should apply as this is what is necessary to bring the wages in line with the applicable human rights law or pay equity law in the jurisdiction.

Under Ontario's Pay Equity Act this tool for measuring the existence of discrimination involves three steps;

  1. Assess the value of male and female jobs and compare the wage rates of jobs with comparable value. If there is a variance, adjust the female job rate upwards to match the male job rate.
  2. If there is no comparable male job but there are some male job classes in the workplace, use the proportional value comparison method and establish a wage line to determine the pattern of payment for male and female wages. Then adjust the female wage line upward to match male wage line; and
  3. If there are no male jobs in workplace, use the proxy method of comparison. This provides that female job classes can borrow a comparator job class from a comparable work place to identify the discrimination in the all-female workplace.

An arbitrator could be asked to adopt these methods in order to identify discrimination in a collective agreement wage schedule.

Another issue which would likely arise is the scope of an arbitrator's power to issue a remedy for a systemic discrimination complaint. Because arbitrators generally do not have the power to amend the collective agreement, employers may argue that they can only issue a declaration that there has been a violation of the collective agreement due to discrimination. However, flowing either from their explicit statutory power to "apply" human rights and other employment-related statutes, or from their general authority to provide a remedy for a breach of the no-discrimination clause in a collective agreement, there is an argument that arbitrators can order a non-discriminatory wage schedule which would involve increases to the female job classes to eliminate wage discrimination.

Apart from arbitrators under the federal Canada Labour Code, who can expressly give relief in accordance with employment-related statutes, the scope of arbitrators' remedial authority to interpret and apply human rights statutes has not yet been fully developed. 

B. Complaints Before Labour Relations Boards

As a rule, labour relations boards have not been used as a forum to deal with pay equity complaints. The exception is under the Manitoba Pay Equity Act which allows some pay equity disputes to be referred to the labour relations board in that province. However, the traditional forms of labour relations complaints may provide an alternate avenue of pay equity redress as outlined below.

1. Bad Faith Bargaining Complaint

First, can bad faith bargaining complaints be used to address claims for equity?

There is no legal mechanism to force employers to agree in bargaining to do something which they are not required to do, for example, to bring the pay equity process into the collective agreement. However, the employer's duty to bargain in good faith includes a duty not to make illegal demands. This is underscored in s. 54 of the Ontario Labour Relations Act which explicitly states that

"A collective agreement must not discriminate against any person if the discrimination is contrary to the Human Rights Code or the Canadian Charter of Rights and Freedoms."

Thus, unions can argue that an employer cannot propose a collective agreement provision which is discriminatory. For example, unions can argue that an employer cannot propose a wage schedule or benefits provision which does not achieve equal pay for work of equal value. As a corollary, the duty to bargain in good faith could be interpreted to include a duty not to resist union proposals which seek to implement pay equity.

The good faith bargaining duty provides a means for unions to address during bargaining those collective agreement provisions which they believe to be discriminatory. For example, a union may put forward a bargaining proposal to remove or amend a collective agreement provision on the grounds that it is discriminatory and therefore illegal. If the employer will not agree to the proposal, or will agree to it only in exchange for something else, the union may consider bringing a bad faith bargaining complaint.

Unions should not have to compromise on other issues in order to obtain agreement to proposals which seek to bring the collective agreement in line with human rights obligations. Through the process of a bad faith bargaining complaint, the labour board would have to determine whether or not the proposal at issue is one that is required by law or whether it is one of a number of possible legal alternatives. If a union's proposal was the only legal alternative, an employer's resistance to it should constitute bad faith bargaining. If the union proposal is not the only legal alternative, the employer would likely be able to resist it in favour or another method of responding to the collective agreement discrimination.

b. Unfair Labour Practice Complaint

The second labour relations board option may be an unfair labour practice complaint.

If an employer lays off or contracts out women's jobs because they have been awarded pay equity adjustments, arguably this can be characterized as an unfair labour practice. Such lay offs or contracting out by the employer could also constitute intimidation, coercion or a reprisal for attempting to exercise rights integral to labour relations. Such conduct could also interfere with the union's representation of its members in relation to the right to receive non-discriminatory wages. Evidence that the lay offs or contracting out were motivated by anti-pay equity animus would be important.

Under the Canada Labour Code, the labour board has the power to issue substantive interim orders which may be useful in blocking the lay offs or contracting out pending a resolution of the dispute.

c. Conclusions on labour board complaints

The labour board route is worth seriously considering. While labour boards often lack expertise in discrimination matters and accordingly there may be the risk of setting negative precedents, at the same time, labour board applications are the fastest way to get a remedy and the remedies can be powerful.

Even where a party is covered by a provincial pay equity law, they may not want to proceed under that law because of the delays inherent in the process and the difficulty of getting orders when the case is before the commission's review officers. By contrast, complaints of bad faith bargaining or unfair labour practices can come on much more quickly before the labour board than would complaints regarding reprisal under the pay equity legislation.

C. Charter of Rights Litigation

While acknowledging that Charter litigation is expensive and brings with it its own uncertainties, the Charter could be used in two respects. First, it could be used to gain access to pay equity for some groups of workers. Second, it could be used to protect gains which have been made under existing pay equity legislation.

1. Gaining Access to Pay Equity

The Charter can be useful in promoting pay equity if it is possible to find that an employer is "government" and therefore subject to the Charter. If bound by the Charter, the employer must pay wages that are non-discriminatory or risk being in contravention of the Charter's s. 15 equality guarantee.

To construct this argument it is useful to refer to the SCC's decision in Eldridge v. British Columbia (1997), 151 D.L.R. (4th) 577. In that case, the Court held that the failure of hospitals and the British Columbia Medical Services Commission to provide sign-language interpreters for hearing-impaired persons seeking medical services violated s. 15 of the Charter. The case includes an extended discussion of what constitutes "government" for the purposes of applying the Charter and of when private actors can be subject to Charter scrutiny. The Court found that government should not be able to evade its Charter responsibilities or escape Charter scrutiny by delegating the implementation of their policies and programmes to private entities. Therefore, the Charter will apply to private entities insofar as they act to further or implement a specific government programme or policy.

The reasoning in Eldridge can help us think creatively about the full range of bodies which may be subject to the Charter. For example, the Charter may apply to employers in the broader public sector or it may apply where government has "privatized" some of its functions. If these employers are paying discriminatory wages, it could be argued that these wages are in violation of s. 15 the Charter.

In the recent case of Perera v. Canada (1998), 158 D.L.R. (4th) 341 the Federal Court of Appeal held that it was possible under s. 15 of the Charter to make a claim against a government agency alleging systemic discrimination in employment. Perera is an employment equity case rather than a pay equity case but the same logic applies. In Perera, employees of a federal government agency claimed that with respect to promotions, work assignments, performance appraisal reviews, etc. they had been subject to systemic and individual discrimination on the basis of race, national and ethnic origin and colour contrary to the Charter. They sought systemic remedies under s. 24(1) of the Charter.

The respondent employer in Perera brought a motion to strike the statement of claim as disclosing no reasonable cause of action. While the Federal Court Trial Division struck the portion of the claim which requested pro-active systemic remedies such as hiring programmes, the Federal Court of Appeal ruled that the statement of claim should stand. The Court referred to the systemic remedies that Canadian Human Rights Tribunals had awarded in Action Travail and Robichaud and ruled that "the courts must have, under section 24 of the Charter, the power to impose similar remedies when they deem it appropriate."

The Supreme Court of Canada in Delisle v. Canada (2 September 1999) also suggested that where a person is employed by an entity which is "government", where the employer interferes with rights under the Charter, these infringements can be challenged under the Charter directly and need not be protected and enforced separately under other statutes. Although that case dealt with an allegation that freedom of association had been violated by excluding members of the RCMP from collective bargaining statutes, the analysis with respect to the application of the Charter to government-employers would be equally applicable with respect to allegations that s. 15(1) equality rights had been infringed.

2. Protecting Pay Equity Gains

The second alternative is to use the Charter to enforce or maintain pay equity adjustments that have already been won under existing pay equity legislation.

In Ontario, a number of unions have been able to use the Pay Equity Act to secure pay increases for their female employees in the broader public sector. Now, broader public sector employers in the health care sector are arguing that pay equity is putting them at a competitive disadvantage and that if their pay equity obligations are not removed, they will be forced to go out of business. These are workplaces which receive virtually all of their funding from government and they cannot make the pay equity adjustments without further funding.

The Charter argument could be applied in two ways.

First, following the analysis in Eldridge above, it could be argued that the government is really the "employer" and that the government's failure to properly fund pay equity is a violation of s. 15.

There are difficulties making this argument in Ontario because of specific amendments to the Ontario Pay Equity Act. In 1992, the Pay Equity Hearings Tribunal ruled that in light of the degree of control that the Ministry of Community and Social Services exerted over the Kingston Children's Aid Society (through regulating standards, reviewing and monitoring services provided, conducting audits, and particularly funding), the Ministry was the employer for pay equity purposes. Because the Ministry decisions had a substantial and direct impact on the compensation practices at the Children's Aid Society, the Ministry was found to be the employer for pay equity purposes and a small broader public sector workplace without appropriate male comparators was able to seek pay equity using male comparators at the Ministry itself: Kingston Children's Aid Society [1992] 3 P.E.R. 116 (P.E.H.T.).

In response to this ruling, the Ontario government amended the Pay Equity Act to explicitly provide in s. 1.1 that "For the purposes of this Act, the Crown is not the employer of a person unless the person is considered to be a civil servant, a public servant or a Crown employee under the Public Service Act."

Nevertheless, the argument could still be used elsewhere in Canada where broader public sector employers are unwilling or unable to distribute pay equity adjustments.

Second, a Charter challenge could be directed at the legislation and procedures which govern the allocation of services in the health care sector. For example, in Ontario, the Harris government has decided to privatize home care for people discharged from hospital. The government has established a number of regional Community Care Access Centres which act as brokers in awarding home care contracts. The government gives the money for publicly funded home care to the Access Centres. Home care agencies then submit bids in a system of competitive tendering and the Access Centres award the contracts.

Obviously lowest cost becomes the determining factor. Under this scheme, the non-profit broader public sector agencies which have to date been providing the services and which have achieved proxy pay equity plans for their employees must compete against for-profit private sector employers who, being private sector employers with predominantly female workforces, do not have the same pay equity obligations. To the extent that this system operates to disproportionately impose downward pressure on women's wages and conditions of employment it could be argued that it violates s. 15 of the Charter.

PART IV: POLITICAL ACTION
This last example of employers lobbying to remove their pay equity obligations is an important reminder that whatever legal strategy and legal forum we choose to advance pay equity claims, we have to remain engaged in the political forum as well. In the public sector and in the national print media, there is a serious backlash against both the cost of pay equity and the concept of pay equity. It is important for unions and labour lawyers to think about what we can do in terms of public education to make sure that the backlash doesn't wipe out support for pay equity altogether.

The current legislative approaches for addressing wage discrimination have not led to the achievement of pay equity for all women yet and, in the end, it well may be that we need better legislation. Clearly, looking for legislative change is a slow and necessarily long-term project. The fact is that, whatever flaws it may have, pro-active pay equity laws have been able to advance pay equity more broadly and more effectively than any complaints-based mechanism.

It is necessary to lobby for

  • pro-active pay equity legislation right across the country and pro-active legislation that applies to both the public and the private sector;
  • amendments to existing pay equity legislation to broaden the permissible forms of comparison so that women in predominantly female workplaces can access pay equity;
  • amendments to human rights codes to broaden the definition of fair wages to get away from the equal pay for similar work definition. An example of a truly forward looking definition of pay equity appears in s. 14 of the Yukon Human Rights Act which provides that:

s. 14 (2) It is discrimination for an employer to establish or maintain a difference in wages between employees who are performing work of equal value, if the difference is based on any of the prohibited grounds of discrimination.

 

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