New ’pay transparency’ bill from Ontario government aims to close gender wage gap

Always good to have more and better data. However, hard to understand the need in the Ontario public service given salary scales already in place and wonder whether existing mechanisms like the Census are being used and analyzed as effectively as possible to identify more precisely the gaps before adding yet another reporting requirement:

Ontario plans to introduce legislation Tuesday that aims to close the wage gap between women and men in the province.

If passed, the “pay transparency” bill would require all publicly advertised job postings to include a salary rate or range, bar employers from asking about past compensation and prohibit reprisal against employees who do discuss or disclose compensation.

It would also create a framework that would require large employers to track and report compensation gaps based on gender and other diversity characteristics, and disclose the information to the province.

The pay transparency measures will begin with the Ontario public service before applying to employers with more than 500 employees. It will later extend to those with more than 250 workers.

The government says it will spend up to $50 million over the next three years on the initiative.

Liberal Premier Kathleen Wynne is expected to announce the legislation — called Then Now Next: Ontario’s Strategy for Women’s Economic Empowerment — during a Women’s Empowerment Summit at the Art Gallery of Ontario in Toronto.

“We know that too many women still face systemic barriers to economic advancement,” Wynne said in a statement. “It’s time for change.”

According to the province, the gender wage gap has remained stagnant over the past 10 years, with women earning approximately 30 per cent less than men.

The government said it looked to other jurisdictions to create the basis of its legislation, including existing laws in Germany, Australia and the United Kingdom.

Wynne has made the themes of fairness and opportunity key planks of her bid for re-election this spring, pitching policies like the province’s increase to minimum wage and expansion of drug coverage for people aged 25 and under as part of those efforts.

About Andrew
Andrew blogs and tweets public policy issues, particularly the relationship between the political and bureaucratic levels, citizenship and multiculturalism. His latest book, Policy Arrogance or Innocent Bias, recounts his experience as a senior public servant in this area.

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