Launch of Fair-ON-Pay Aware pilot - a new label for small companies

Launch of Fair-ON-Pay Aware pilot - a new label for small companies

10 Jan 2025

The Fair-ON-Pay Association has developed a method and procedure to measure the “adjusted pay gap” based on the EPIC "Best Practice" model Logib. Companies that go through the rigorous Fair-ON-Pay process can obtain a label and publicly demonstrate that they comply with the Fair-ON-Pay standard. However, this method only applies to companies with at least 100 employees. To put this in perspective, in Switzerland less than 1% of companies (around 5,000) can carry out this type of analysis.

 According to the Swiss Federal Statistical Office, the gender pay gap is mainly driven by smaller companies. Aware of this, the Federal Office for Gender Equality has developed a new method for analysing the gender pay gap - Logib Module 2 - specifically for smaller companies. Over the past year, we have received an increasing number of requests from smaller companies that want to be certified and publicly report on what they are doing to reduce the gender pay gap. With our current labels, these companies were left out in the cold.

 The Fair-ON-Pay Association is therefore developing a new labelling scheme based on Logib Module 2: Fair-ON-Pay Aware. The paradox of this new method is that it is more complex than Module 1, which is used in larger companies. Defining “work of equal value” is more delicate in a small company (they usually lack structure). That is why module 2 requires performing an analytical job evaluation for all roles in the company. Knowing that smaller companies generally don't employ HR specialists (or HR at all), it is important that this new label accompanies and trains them on equal pay issues. Therefore, to receive the new label, smaller companies must attend an equal pay training and carry out the gender pay gap (and job evaluation) with accredited experts from the association. If the results meet the normative criteria, the Fair-ON-Pay Aware label can be awarded for a period of 4 years, provided that the company submits annual gender pay gap analyses that are quality audited by our experts.

 This new label aims to continuously raise awareness of the gender pay gap and professionalise HR practice. By promoting their good practice via a label, the social pressure to finally actively fight the gender pay gap at all company sizes will increase. We are currently in the pilot phase and working with pilot companies to fine-tune the process and normative criteria.

 

EDGEplus Gender and Intersectional Pay Gap Analysis Methodology Release

EDGEplus Gender and Intersectional Pay Gap Analysis Methodology Release

10 Jan 2025

In November 2024, the EDGE Certified Foundation published the EDGEplus Unexplained Gender and Intersectional Pay Gap (UGIPG) Analysis V1.3 methodology. 

Closing Intersectional Pay Gaps

Pay gaps based on race and ethnicity remain a persistent challenge in labour markets globally, often stemming from systemic discrimination. These disparities can adversely affect the recruitment, retention, and productivity of employees from underrepresented race/ethnic groups. To address this issue effectively, it is recommended to measure, analyze, and implement strategies to close race/ethnicity pay gaps.

A Methodology to Analyze Pay Equity Across Race, Ethnicity, and Gender

The EDGEplus UGIPG methodology is a scientific method that allows organizations to assess whether there are unexplained pay gaps between women and men of different races/ethnicities. Using a linear regression model with Ordinary Least Squares, the EDGEplus UGIPG methodology measures whether an organization has any pay gap which cannot be explained by factors other than the combined effects of gender and race/ethnicity.

It covers all employees in an organization and includes both salary (base salary) and pay (base salary plus bonuses and other cash benefits), which are measured against the following objective and non-discriminatory explanatory variables:

-Variables related to personal characteristics of the employee: gender, tenure, age

-Variables related to the type of job of the employee: responsibility of the role, type of performed function, level of responsibility

This methodology extends the EDGE-compliant Unexplained Gender Pay Gap (UGPG) analysis that is generally applied as part of the preparation for EDGE Certification, to enable a gender and intersectional analysis of pay gaps within certifying organizations by adding the explanatory variable, race/ethnicity. 

Find the EDGEplus UGIPG Methodology Here

Organizations looking to analyze pay equity by race/ethnicity, including identifying any unexplained pay gaps between women and men of different races/ethnicities, can find the EDGEplus Unexplained Gender and Intersectional Pay Gap Analysis Methodology here

 

Switzerland releases a new version of Logib Module 1

Switzerland releases a new version of Logib Module 1

10 Jan 2025

In December 2024, Switzerland released a new version of Logib Module 1, its free online equal pay analysis tool. This update takes detailed account of the structure of certain companies or organisations with complex and numerous job functions. The «level of requirements», a variable referring to the knowledge, skills and qualifications necessary to carry out tasks associated with a job function, has therefore been extended to a maximum of 8 levels.

The Logib online tool was launched in 2020. Its quality and effectiveness are internationally recognised: Logib Module 1, Module 2 and the Logib salary system have all been awarded the EPIC Good Practice.

Coming Soon: Level the Paying Field Series III – Exploring Pay Equity Through Pop Culture

Coming Soon: Level the Paying Field Series III – Exploring Pay Equity Through Pop Culture

10 Jan 2025

The Ontario Pay Equity Office is thrilled to announce the return of Level the Paying Field, the podcast and YouTube series dedicated to important conversations around economics, equity, women, work, and money.

Launching early 2025, this six-episode series will explore how pop culture shapes and reflects pay equity. From blockbuster films and binge-worthy TV shows to music, sports, video games, and the arts, Level the Paying Field III will examine how these cultural touchpoints influence our understanding of equity and highlight the challenges and opportunities in achieving fair pay.

Each episode will feature thought-provoking discussions with experts, professionals, and cultural commentators, offering fresh perspectives on how pop culture shapes our perception of pay equity and its real-world implications.

In the meantime, catch up on Seasons I & II at levelthepayingfield.ca - or wherever you get your podcasts - and be sure to watch, listen, and subscribe today, and get ready to be part of the conversation when Series III premieres!

Follow us on social media to stay on top of the release date for Season III: Ontario Pay Equity Office | LinkedIn, Ontario Pay Equity Office - YouTube, @OntPayEquity / X / @OntPayEquityFR / X

INFORME DE AVANCE DE LA INICIATIVA COSTARRICENSE PARA LA IGUALDAD SALARIAL ENTRE HOMBRES Y MUJERES 2024 (Instituto Nacional de las Mujeres. Departamento de Gestión de Políticas Públicas. enero, 2024)

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A study on the employment and wage outcomes of people with disabilities (ILO)

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The gender pay gap in Moldova. Recent trends and policy implications (ILO)

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Key Achievements in Pay Equity for Canada’s Federally Regulated Employers

Key Achievements in Pay Equity for Canada’s Federally Regulated Employers

27 Sep 2024

The Office of the Pay Equity Commissioner at the Canadian Human Rights Commission has been actively working to promote fair compensation practices among federally regulated employers. Here are some key updates from the past few months:

1.September 3, 2024 Deadline: Employers who became subject to the Pay Equity Act on August 31, 2021 were required to post their first pay equity plan by September 3, 2024. This milestone marks a significant step towards ensuring equal pay for work of equal value for all employees.

2.First Increases in Compensation become payable: As of September 4, 2024, the first increases in compensation became payable for eligible employees. This development is a crucial part of the ongoing efforts to address pay gaps in federal workplaces across Canada.

3.Upcoming Annual Statements: The Office is eagerly anticipating the receipt of the first annual statements from employers in the coming year. These statements will be instrumental in measuring the impact of the new legislation and ensuring compliance among federally regulated employers.

Furthermore, on International Equal Pay Day, Federal Pay Equity Commissioner Lori Straznicky called on Canadian business leaders to acknowledge the significant value for all in closing the wage gap by turning their plans into tangible actions. Read the full statement. 

The Office of the Pay Equity Commissioner is committed to continuing the work towards achieving pay equity and looks forward to sharing more updates about Canada’s progress.

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Australia introduces a right to disconnect to help people balance work and life

Australia introduces a right to disconnect to help people balance work and life

27 Sep 2024

Over recent years, the Australian Government has made legislative reforms to ensure the workplace relations system works better for women. 

Historically, the structures that set out Australians' rights at work and govern how workplace relations decisions are made had not been designed to consider the unique experiences of women. Women are more likely to work in industries and in jobs with less security and less pay. This has made it much more difficult for women to use these structures to support their claims for equal pay and conditions such as flexible work. 

Following significant legislative reforms in 2022, 2023 and 2024, a new tranche of changes have recently come into effect in August 2024. The new laws give workers greater protections around workplace conditions, job security, and their ability to balance work and life. 

The reforms included a new employee right to disconnect which gives employees the right to refuse to monitor, read, or respond to employer or work-related contact out of hours, unless refusing to do so is unreasonable.  

The right to disconnect is a high level right, with factors that must be considered to help determine whether an employee’s refusal to monitor, read or respond to contact is unreasonable. There are no obligations that limit employers or others from contacting or attempting to contact employees – just protections for employees who reasonably switch off. This new right elevates the importance of ‘disconnection’ from work to respond to the challenges of availability creep, unpaid labour and balancing work and care.

The right to disconnect commenced in Australia on 26 August 2024 for non-small business employers and employees. It will start for small businesses in August 2025.

Red Card: The Women’s Sports Gender Wage Gap

Red Card: The Women’s Sports Gender Wage Gap

25 Sep 2024

In the last century, women's sports have made significant strides. Previously barred from the Olympics, women now participate in every event, fueling the expansion and enthusiasm in women’s professional sports leagues. 

While these advancements are celebrated, the gender wage gap persists in sports, with female athletes earning less than their male counterparts. Challenges like unequal pay and limited sponsorship opportunities continue to affect women’s sports, causing female athletes' financial compensation to lag men.

The Gender Wage Gap Exists in All Sectors 

The gender pay gap is not limited to sports; it's global and affects all sectors and areas of life. Our research at the Ontario Pay Equity Office reveals that, on average, Ontario women, on an hourly basis, make 87 cents for every dollar made by a man, making the gender wage gap 13%. The gender wage gap is larger for racialized women, women who are newcomers, women with disabilities, Indigenous women, and trans women.

According to a report from Deloitte (UK), women's professional sports are projected to generate a staggering US$1.28 billion in global revenues by 2024. This 2023 study conducted by RBC and The Collective underscores a significant pay gap between male and female athletes, with men earning approximately 21 times more in playing salary. The potential of women's sports to contribute to the global economy is immense, and closing the gender pay gap could further boost this contribution. Additionally, factors such as pregnancy, childbirth, and aging contribute to women experiencing a significant decline in their career earnings.

Refocus on Women Athletes

Non-playing earnings, such as corporate and brand partnerships, are not just a supplement but a crucial part of success and sustainability. Female athletes greatly value these earnings, which are instrumental in bridging the gender pay gap. 

In comparison, a female athlete receives 82% of their compensation from endorsements, while only 37% of a man’s revenue comes from this income source. This method maximizes male athletes' revenue but overlooks female athletes' distinct value. Combined with record attendance and viewership, it is increasingly clear that women’s sports are good for business, drive revenue and attract loyal fans. 

While we can celebrate the progress in women’s sports, much more work remains until all women’s compensation is equal to that of men across all work sectors. We must continue to push until women’s participation becomes unremarkable because it has become normative. This is the work we do every day at the Ontario Pay Equity Office. 

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