OUTLINE OF PRESENTATION TO THE
FEDERAL TASK FORCE ON
PAY EQUITY

APRIL 29, 2002

Introduction

The Government of the Northwest Territories is committed to equality of economic opportunity for all residents of the Northwest Territories. Pay equity, employment equity, childcare and education initiatives are all examples of measures that can be used to achieve this. What combination of measures is most effective in a particular jurisdiction will depend on its socio-economic context. Achieving equality in employment in the Northwest Territories may require different initiatives than in Southern Canada because of our unique circumstances.

Employment is required before anyone will benefit from equal pay laws. To ensure that employment is available, continuing action is required not only to promote and create employment opportunities, but also to improve standards in housing, health, and education.

Labour and Human Rights Laws in the Northwest Territories

A revised federal equal pay for work of equal value law may apply to different groups of employers and employees in the Northwest Territories depending on where it is contained. This could result in a dramatically different application of the law in the Northwest Territories as compared to the rest of Canada.

Either or both federal or territorial human rights and labour laws may apply to particular employers. Currently, the Canadian Human Rights Act (“CHRA”), including s. 11, applies to the Northwest Territories public service (including colleges, health and education boards) and to federally-regulated employers who have establishments in the Northwest Territories. Under s. 66 of the CHRA, the federal government may provide that the CHRA does not apply to the Northwest Territories, Nunavut or the Yukon Territory. Such a proclamation has been made in respect of the Yukon.

Currently, our Fair Practices Act applies to territorial employers, including the Northwest Territories' public service. A human rights bill has recently received second reading, and the issue of equal pay is presently under study. This new legislation expands the grounds upon which residents of the Northwest Territories are protected from discrimination. Once passed, it will replace the Fair Practices Act.

Part I of the Canada Labour Code does not apply to the Northwest Territories public service (as the Northwest Territories' Public Service Act does), but it does apply to other territorial employers (whether or not they are otherwise federally-regulated). Part III of the Canada Labour Code applies to federally-regulated employers in the Northwest Territories but excludes “local or private” businesses in the Northwest Territories. The Northwest Territories' Labour Standards Act applies to other employers.

This complex jurisdictional pattern means that the determination of a legislative "home" for a federal equal pay for work of equal value regime will significantly affect the scope of its application in the Northwest Territories. Currently, s. 11 of the CHRA applies only to the public service of the Northwest Territories and to federally-regulated employers in the Northwest Territories. If the regime were to move into Part I of the Canada Labour Code, it would apply extensively throughout the Northwest Territories, but not to the Northwest Territories' public service. If it was moved into Part III of the Canada Labour Code, it would apply only to federally-regulated employers in the Northwest Territories.

Background Information on the Northwest Territories

It is important to be aware of the demographics of the Northwest Territories, particularly in comparison to Canada as a whole. Notable differences include the roughly equal representation of aboriginal and non-aboriginal residents and the younger average age of our population. Demographic information shows a strong correlation between being aboriginal and various indicia of socio-economic disadvantage. These affect employment opportunity and therefore bear on the achievement of equality in employment.

Our economy is also distinct from the rest of Canada. Government accounts for proportionately far more jobs in the Northwest Territories than in the rest of Canada. Outside of government, the main source of economic activity is the resource sector. Not only are most employers in the Northwest Territories very small compared to federally regulated private sector employers, but there is also a narrower range of industries and occupations outside of government. Finally, much of our economy is still dependent on Southern Canada, both for funds and for trained workers. In turn, both revenues and trained workers flow south rather than remaining here.

Turning to labour force characteristics in the Northwest Territories, being aboriginal is more strongly correlated with disadvantage in the labour force than gender. Labour force participation rates, employment rates and potential labour supply rates all suggest that our aboriginal residents have less access to employment than non-aboriginal residents, regardless of gender. When the intersection of aboriginal status and gender is considered, non-aboriginal men are advantaged relative to women, both aboriginal and non-aboriginal, and to aboriginal men.

Extending Pay Equity to Race

It has been suggested that the principles of pay equity should be extended to race. We agree with those who say that this issue requires further research. We believe it is important to understand what kinds of racial wage inequities exist in the Northwest Territories before we can determine how best to address them.

Northwest Territories Initiatives to Promote Equality in Employment

As noted above, there is currently a human rights bill before our Legislative Assembly. The bill includes a guarantee of equal pay for equal work on all prohibited grounds of discrimination. The Government is continuing to study issues related to equal pay for work of equal value in the Northwest Territories.

Within its own public service, the Government of the Northwest Territories has negotiated a universal job evaluation plan with its main union that is included in the Collective Agreement. It also applies to positions excluded from the bargaining unit.

In addition, the Government is continuing to work to remove barriers to full economic participation by all residents through initiatives in housing, health and education.

Conclusion

The Government of the Northwest Territories urges the Task Force to consider the unique character, needs and aspirations of the residents of the Northwest Territories as it contemplates revisions to the federal equal pay for work of equal value law, so as to ensure that the scope and content of its recommendations reflect our particular circumstances.