Oct 18, 2021
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Cavalluzzo LLP lawyers have created a free, downloadable guide for trade unions to explain the new federal Pay Equity Act, which came into effect August 31, 2021. This trade union guide provides a basic and plain language overview of employer’s obligations and trade union’s rights and obligations in respect of enforcing pay equity for their bargaining unit members.

The new proactive Act is the result of years of lobbying and advocating by trade unions, including through the 2004 Pay Equity Task Force. This new law now requires employers to sit down with bargaining agents to develop a plan to redress systemic wage discrimination in their workplaces.

The proactive Federal pay equity regime has two basic phases. The first phase, from November 1, 2021 to September 3, 2024, is to establish pay equity. Where trade unions represent employees, pay equity committees work to develop a pay equity plan(s) for each employer.

If the pay equity plan identifies that compensation adjustments and increases are owed to female job classes, the Act sets out up to a five-year period for payments depending on the amounts owed and size of the employer.

The second phase is the employer's obligation to maintain pay equity. An updated pay equity plan must be posted no later than September 4, 2029.

The Act also requires the employer provide the Pay Equity Commissioner with an annual pay equity maintenance review, 

To learn more about the Act and how it applies to unionized employees, click HERE to open and download our comprehensive guide.

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