FEWO Committee Report

October 7, 2005

Ms. Anita Neville
Chair of the Standing Committee on the Status of Women
Room 815, Confederation Building
House of Commons
Ottawa, Ontario K1A 0A6

Dear Ms. Neville:

Pursuant to Standing Order 109 of the House of Commons, we are pleased, on behalf of the Government of Canada, to respond to the recommendation contained in Moving Forward on the Pay Equity Task Force Recommendations, the Fourth Report of the Standing Committee on the Status of Women.

The Government appreciates the work performed by the Committee and recognizes its important role in providing stakeholders and others with the opportunity to share their knowledge, experiences and concerns with respect to pay equity. The Committee has recommended that legislation based on the recommendations of the Pay Equity Task Force be tabled by October 31, 2005.

The Government recognizes the contribution of the Report of the Task Force but after careful review the Government feels that the Report does not provide an adequate blueprint for implementation of pay equity in a broad range of federally-regulated workplaces. Pay equity is a human right and the Government wants to ensure that it is implemented in a way that is fair and meets the real needs of all Canadians affected by federal pay equity legislation. Given the complexities associated with the implementation of proactive pay equity legislation, the Government cannot, at this time, introduce federal legislation by October 31, 2005, without further study and consultation.

The Task Force report contains 113 recommendations, many of which deal with complex terminologies and methodologies related to the implementation and maintenance of pay equity. These recommendations are interrelated, and call for further analyses, consultation, examination and policy development before legislation can be introduced. In addition, some recommendations call for new oversight agencies and their corresponding functions that could require machinery changes.

This Government is committed to pay equity and wants to ensure that any new legislation will be effective, equitable, efficient and sustainable. In order to achieve these goals, the Government believes that it is imperative to further address four key issues identified by Government and raised by stakeholders before tabling any legislative reform. These key issues form the backbone of effective pay equity legislation and include:

• the relationship between pay equity and collective bargaining;
• the obligations of employers and unions;
• the establishment of pay equity committees to manage the pay equity process and the authority that is vested in them; and
• the definition of establishment.

Therefore, the Government is developing substantive proposals for legislative reform and will work closely with stakeholders through this process. The Minister of Justice and the Minister of Labour and Housing will appoint an impartial facilitator to lead discussions with major stakeholder representatives. These representatives will discuss the Government's proposals related to the above-mentioned four issues, and will consider alternatives that respect basic principles related to pay equity. Drawing on these discussions, the Government will consider a range of methodologies and processes in implementing pay equity reforms and will work towards introducing a bill on pay equity by late 2006 or early 2007.

In closing, we want to thank the Committee for its work and to reiterate that this Government is committed to effective and efficient proactive pay equity reform. This reform must be developed with care in order that it provides timely access to pay equity and sufficient flexibility to address the needs of a broad and diverse range of employees, employee representatives and employers under federal jurisdiction. As this process proceeds, we plan to keep the Committee on the Status of Women fully informed on progress.

Yours sincerely,