The Effects Of Restructuring On Pay Equity

Since the 1970s there have been an increasing number of women entering the public sector. This has meant that the government has had to respond to growing female concerns about their position in the civil service. However, the participation of women has not always resulted in equal treatment. Many complaints raised by women's group's concern wage differentials between males and females. The concern is that women are making less than men for work which is equal in value.

Since the 1980s provincial governments have taken action to reduce this disparity with strategies like "equal pay for work of equal value." In Ontario the NDP government introduced the Ontario Pay Equity Act in 1987, which applied to public and private sector workers. This strategy compares the value of conventional women's work to conventional men's work . The objective is that if women's work is comparable, then it should be of equal pay.

Gains have been made by female public sector workers as a result of "equal pay for work of equal value". This has not come easily as many pay equity disputes were fought in courts. At other times, pay equity has actually increased the difference among women's workers. It has sometimes left several women benefiting more than others.

Although the intent of the legislation was praised, it became increasingly difficult to implement during changing political and economic times. The election of the Harris government would dramatically amend the Ontario Pay Equity Act of 1987. His Conservative government would focus on restructuring the public sector during his 'Common Sense Revolution' .

This paper will focus on the period which the Ontario Pay Equity Act was implemented. This will be followed by the dismantling of the Act by during the 1990s. I will argue that the restructuring of the healthcare sector has had a negative impact on pay equity initiatives in Ontario. This has effectively delayed the implementation of pay equity initiatives for healthcare workers . The implications of restructuring will be analyzed with several recommendations for the future.

A case study of Ontario healthcare workers will be used to support this position. The healthcare sector suffered substantial cuts during this restructuring process. This has had the effect of limiting pay equity complaints from nurses. When complaints have been successful they have had to endure extensive litigation. Further, this case study will help to provide a model of what pay equity has meant for public sector workers in Ontario.

First, I will look at the historical development of pay equity in Ontario. This will include political and economic factors leading to the adoption of the Ontario Pay Equity Act. This will help in assessing how pay equity was being delivered by the government up until the 1980s.

This paper will also emphasize the effect of union participation on achieving pay equity aims. The successes of nurses unions in achieving equal pay objectives will be addressed.

This will be followed by the political and economic restructuring of the Ontario provincial government. Highlighted, will be the policy of fiscal restraint adopted by the Harris government when dealing with the public sector. This will be linked to its effect on pay equity for healthcare workers. Supreme Court and Tribunal decisions concerning pay equity will also be looked at in Ontario. Their effects on the decisions on achieving pay equity will be discussed. Of particular importance is how these decisions have influenced provincial obligations to honor pay equity. Finally, recommendations will be made for a forward moving strategy for pay equity initiatives in Ontario.

T o begin, any discussion of pay equity in Ontario needs to be put into the historical context in which it was developed. As mentioned, the number of women in the public sector was limited up until the late 1960s and early 70s. Prior to that, women were exclusively represented in low level, entry positions . The Civil Service Act of 1918 particularly played a role in limiting the advancement of women. It limited competitions on such factors as age and sex. Married women were also forced to resign unless they were 'self supporting' or if a 'sufficient amount of candidates were unable' . Pay equity was unable to develop in this atmosphere, as women worked just to keep their employment.

The post WII period, challenged the practice of terminating married women. Now one third of women employed in the public service were married . The termination policies became outdated with changing times and were finally struck down. The removal of these restrictions had the effect of increasing salaries and benefits . The appointment of women in the late 1950s rose to 45 percent, with women making up to 27 percent of the public sector .

During the 1950s, the Ontario government had taken the initiative to introduce the first equal pay legislation in Canada. The Female Employees Fair Remuneration Act of 1951 was seen as a victory for many female public sector workers at the time. But the battle was far from won for female public workers . The feeling of triumph was short lived as strict definitions of equal work excluded most women and allowed employers to avoid the Act . As Armstrong indicates, the impact of equal pay legislation was limited by several factors. First, the majority of women were segregated from the workplaces of men. This would make it difficult to compare both men and women doing the same job . Secondly, the complaint based procedure placed the onus on women in demanding equal pay . Third, the financial penalty placed on employers' was small enough to risk non-compliance . Finally, employers could avoid penalties, by differentiating the work done between men and women. For these reasons, it became hard to implement this legislation.

The federal government soon followed the Act with the ratification of the 1958 Discrimination Convention of the International Labour Organization (ILO). The ratification was a response to the Glasco Commission's reported which indicated that 'while there was no official discrimination against women in recruitment, selection, classification, or pay -in practice, a number of differences in the treatment of men and women could be considered discriminatory" . The Act was designed to provide equal opportunity in employment while reducing workplace discrimination. The corresponding Public Service Employment Act of 1967 would be in accordance to these principles set out in the ILO Convention . As Archibald indicates, equal pay for equal work had been official policy for nearly a century, but it would not be supported until 1967.

In contemporary times, women's groups have focused on the 'equal pay for work of