Info sessions on 2010 pay
equity maintenance
April 2016
Pay Equity Act
Human Resources
•
The purpose of the legislation is to redress differences
in compensation due to the systemic gender
discrimination suffered by persons who occupy
positions in predominantly female job classes.
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Pay Equity Legislation
Human Resources
•
Steps:
–
Determine job classes (example PED34, ADM2A, Painter,
librarian,…)
–
Determine gender predominance of each job class
–
Determine value of job classes
–
Determine maximum hourly rate of each job class
–
Make regression of male job classes (compensation versus value)
–
Compare positioning of female job classes versus regression curve of
male job classes
–
Make adjustments to salary for all employees of
female job classes requiring increases
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Pay Equity Legislation
Human Resources
•
Determine gender predominance of job
classes
–
60% + women = female predominance
–
60% + men = male predominance
–
Between 40% and 60% = neutral job
class (completely eliminated from the
maintenance)
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Pay Equity Legislation
Human Resources
•
Determine value of job classes
–
Qualifications
–
Responsibilities
–
Physical and mental effort
–
Working conditions
•
The value of all these job classes were determined in 2001 by
a pay equity committee with representatives from all employee
groups
•
Example: second cook: 134 points, PED153: 261 points
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Determine salary rate
•
Salary rate used is the maximum of the salary scale applying to the job class
Human Resources
–
Not the actual salary paid to an employee nor the average salaries paid to
all employees in the job class
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Human Resources
Make regression analysis
•
Apply a regression analysis to the job classes with
male gender predominance
•
Regression of hourly rates versus values of job
classes
•
According to agreement signed with MUNACA in
January 2013, the regression used is an exponential
formula
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Regression results of the 2010 pay equity maintenance for male positions
maximum hourly rate = 16.669 x e (.0023 x number of Hay points)
Exponential regression pay equity 2010
y = 16.669e0.0023x
R² = 0.8832
$200.00
Maximum hourly rates
Human Resources
$250.00
$150.00
$100.00
$50.00
$0
200
400
600
800
1000
1200
1400
Hay points
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Human Resources
Positioning of female job classes
•
Compute the “pay equity” hourly rate of all feminine
job classes with the regression formula
•
If the “pay equity” rate is higher than the actual rate,
adjustment is needed
•
If the “pay equity” rate is lower than the actual rate,
no adjustment is needed
•
Example 1: PED 119 with 312 points
16.669 x e (.0023 x 312) = $34.16 vs actual maximum rate of $33.97 (+0.57%)
•
Example 2: PED 34 with 194 points
16.669 x e (.0023 x 194) = $26.04 vs actual maximum rate of $27.80 (no change)
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Human Resources
Feminine job classes with
required pay equity adjustments
•
PED 119 (Laboratory Coordinator) + 0.57%
•
PED 156 (Nursing Coordinator) + 7.85%
•
PED190 (Electron Microscopy Coordinator) + 4.91%
•
PED 194 (Chief Research Technician) +1.24%
•
ADM4C (Mainly legal services) +0.15%
•
SAF4A (Mainly Enrollment) +0.86%
•
Landscape Gardener +6.0%
•
Full Librarian: +28.16%
•
Regular Research Assistants: +30.11%
•
Casuals Group A: +26.69%
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Human Resources
How will the adjustments be computed?
•
Extract on a monthly basis a list of all employees
working at McGill in any positions (starting with the
month of December 2010)
•
“Sift” every single monthly file to extract every
employee who was at one point in time in one of the
affected job classes
•
After the compilation of a comprehensive list of
affected employees, extract detailed information on
every single paycheck received by each of these
employees (including info on regular hours, overtime
hours, vacation pays, etc.) received in each of these
pay checks
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Human Resources
How will the adjustments be computed?
•
Extract for each of these employees their career
history at McGill (all salary increases, temporary
assignments, rematches of position, transfer to
another position, etc.)
•
Reconstruct every salary policy since 2010 for all
employee groups (renewal of collective agreements,
economic increase in salary scales, progression in
scale, across the board adjustments, merit
increases, …, to be sure to apply the same increase
to the adjusted pay equity rates)
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Human Resources
How will the adjustments be computed?
•
Every single affected employee will be individually processed on a pay per pay
basis checking with his/her individual career information
•
The difference between:
•
–
the actual pay checks received between December 2010 and the date of
payment
–
and what the pay checks should have been with pay equity adjustments
–
equals the retro payment
Current salary will be increased, if required
–
•
Depends on the career progression since 2010
Terminated, deceased or retired employees are also entitled to retro payments
–
Please keep your contact information up-to-date
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Who is responsible for the cost of
pay equity maintenance?
Human Resources
•
Retro payments and interest up to actual payments date is
paid from a central account
–
•
Including payments to employees paid by non operating
funds
Salary increases after the actual payments date will be funded
by the local units
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What about income tax
and other deductions?
Human Resources
•
The pay equity retro payment is considered income and taxed as
such
–
McGill will try as best as possible to deduct income tax at the
highest marginal tax rate applicable
–
You are still responsible for possible additional income taxes to be
paid when you file your income tax return
•
Employee and McGill contributions to the pension plans will also be
computed retroactively considering effective rates of contributions
during the past years and your age at each of prior pay dates
•
Contributions to QPP, QPIP, EI or similar programs are also deducted
•
Retro payments are subject to legal interest rates
–
No deductions are made on interest payments but will be taxable when filing income
tax returns
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Next steps
Human Resources
•
First posting until May 30
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Comments received during info sessions
–
Comments received to payequity.hr@mcgill.ca
–
Difficult to answer all individual comments
•
Cannot confirm if individual will received retro or not
•
McGill to confirm if any changes will apply or not due to comments received
prior to June 28
•
Second posting of 60 days until end of August
–
During that period, employees could file complaints to CNESST
–
Coordinates of CNESST included in posting
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Next steps
•
Review of complaints by CNESST, if any
Human Resources
–
•
Then, processing of computation of retro payments
–
•
•
Could take a few months
Will also take a few months
Processing of December 2015 pay equity maintenance
–
CNESST extended deadline to end of 2016
–
Still realistic ?
Next pay equity maintenance due in December 2020
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Human Resources
Questions ?
?
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