Group Ministers' Offices for Pay Equity

Summary#

This is a proposed Order and companion regulations to make all ministers’ offices part of one collective pay equity plan under the Pay Equity Act. If adopted, every ministerial office would be covered and a single pay-equity exercise would be done for all ministerial staff instead of separate plans for each office.

What it does#

• The proposal (the Order Grouping Ministers’ Offices for the Purpose of a Pay Equity Plan) would group all ministerial offices into one, ongoing group. New ministerial offices would be added automatically.
• The companion proposal (the Application of the Pay Equity Act to Ministers’ Offices Regulations) would make every ministers’ office subject to the Pay Equity Act, even those with fewer than 10 staff.
• It would require one shared pay equity plan for all grouped offices instead of separate plans for each office.
• It would set the group’s clock for planning and reporting so the group has three years to prepare an initial plan and to update plans every three years (shorter than the current five years).
• It would force pay adjustments to be paid in a lump sum on the day after the plan is posted. Phasing in increases would not be allowed.
• It would apply the same administrative penalty ranges to very small ministers’ offices as to those with 10 to 99 staff.
• It would let the Pay Equity Commissioner and the Canadian Human Rights Commission (CHRC) deal with the group as a single employer for reporting and enforcement purposes.

Who's affected#

• All ministers’ offices and the people they employ as ministerial staff. The proposal treats all ministerial staff as covered by the Pay Equity Act, even in offices that currently have fewer than 10 employees.
• The Pay Equity Commissioner and the Canadian Human Rights Commission (CHRC), which would interact with one grouped plan instead of many separate plans.
• A small number of ministers’ offices estimated to have fewer than 10 staff (about 2 to 5 offices, based on government directories). Those offices may have to make pay adjustments for some staff — the affected group of staff is estimated at 17 to 44 people.
• The government estimates pay adjustments across these small offices would be less than $1,000,000 per year.
• The proposals would change reporting and review timing for all ministerial offices (about 39 offices would be handled under one plan).

Why it matters#

• It closes a gap where small ministers’ offices could be left out of the proactive pay equity regime. More ministerial staff would be able to get pay increases if their job classes are undervalued.
• One shared plan aims to produce more consistent pay outcomes across different ministers’ offices. Staff doing similar jobs for different ministers would be compared together.
• Shortening the update cycle from five years to three years is meant to better fit the typical four-year election cycle and Cabinet changes, so pay equity reviews finish while the same ministry is still in place.
• Requiring lump-sum payments reduces the chance that a departing minister’s office would delay or avoid paying the full adjustment.
• There are expected administrative savings from preparing and filing one plan and one annual statement, rather than many.
• The proposals are not law yet. They are open for public representations for 30 days after the notice appeared in the Canada Gazette (published February 10, 2024). The documents say the measures are intended to come into force in spring 2024 if adopted.