Have Your Say on Closing the Gender Wage Gap

Nearly 30 years after the introduction of pay equity legislation, it is apparent that Ontario still has a significant gender wage gap.  The gap in question is more complex than the original 1980s-era proposition of equal pay for work of equal value, and it will be more difficult to address.

But the Ontario Minister of Labour is on record as saying that there is a need to “close the gender wage gap and eliminate inequality for women in the workforce”.  New policies affecting private sector organizations as well as government departments and agencies are likely to be developed as a result of this initiative, and your organization should be prepared to offer its input.

According to statistics from the government of Ontario, women earn 73 cents for every dollar in after-tax income in this province.  Racialized women make only 63 cents for every dollar that the average man earns.  In the public sector, women fare better, making 82 per cent of what men earn.  The wage gap tends to widen as women enter the peak earning years between age 45 and 54.  More women than men work for the minimum wage, and more women are employed in part-time jobs.  There are still approximately 2.5 times as many men as women in frequently high-paid jobs in science, technology, engineering and mathematics (STEM).

Why is this the case, and why is Canada – including Ontario – falling behind the rest of the world in closing the gender wage gap?  Many agree that women still face barriers to full participation in the workforce.  This lost potential, according to Ontario’s Minister Responsible for Women’s Issues, negatively affects Ontario’s prosperity.

What can be done?  The provincial government wants to find out.  They have produced a background paper and a consultation document for businesses/organizations and individuals on the issue.  The province is also holding a series of “town hall” consultations around Ontario to gather input from individuals and organizations on how the wage gap is affecting women and on how the government, business, labour and others can work together to address the barriers and factors contributing to the gap.  Feedback on the government’s consultation document is due by January 15, 2016.

One may properly question the accuracy of statistics relating to the exact state of pay equity, and one may consider various factors outside institutional ones that may account for differences in pay (e.g. personal life choices and cultural background).  However, any such considerations do not absolve organizations from their duty to implement and maintain a system which makes job opportunities available equally to all genders and which compensates them accordingly.

A scrupulously fair pay structure makes good business sense as gender does not determine who can best contribute to the growth of any company.  And one of the primary means to ensure equal pay is to provide women full access to all available roles, including higher level roles which may still be dominated by men.

Participating in the government consultation will allow organizations to make a contribution towards, and possibly influence the direction of, the next generation of pay equity laws with the aim of achieving truly equal pay for all genders in the most effective and efficient manner.

Want to learn more? Take a look at an article written by one of our Verity Filion partner’s entitled “My male colleagues are being paid more, and I’m not sure where to turn“. It’s more than evident that the gender wage gap is a hot topic, what are you hearing and seeing about how organizations are dealing with this?” Don’t forget to include your comments below.