Wage Gap and Women’s Economic SecurityOctober 3, 2007

Presentation Overview

Wage Gap Initiative Background Causes and Contributors Economic Imperative Action Plan Highlights Roles and Responsibilities Resources & Programs

Wage Gap Reduction Initiative – Background2002 – Wage Gap

Roundtable Formed2005 – Closing New

Brunswick’s Wage Gap: an Economic Imperative

2006 – Charter for Change2007 – Employer

Conference

Wage Gap Reduction Initiative – OverviewWage Gap is the difference between the average wages that men earn and the average wages that women earn

Pay Equity is defined as equal pay for work of equal value.

Provincial Wage Gap Summary - 2006

2.6

10.512.0

13.414.6 14.8

15.817.4

19.6

23.1

0.0

5.0

10.0

15.0

20.0

25.0

Provinces

Wag

e G

ap (%

)

Canada 16.2%

Causes and Contributors to the Wage Gap

Family Responsibilities

A changing workforce: Women in the workforce

Dual-income earners

The ‘sandwich generation’

Advancement of technology

Family ResponsibilitiesWorkplace ImpactsImpacts from high work-family conflicts include:

Higher work-related stress levels Increased absenteeism rates Increased turnover Lowered job satisfaction Decreased productivity Poor employee health

Job ClusteringTop 10 Most Common Female Occupations

Average employment income: $21,265

6 out of top ten occupations earned less than the average female income

35% of working women in N.B. work in the top female occupations

Under-valuation of Traditional Female Occupations Why are female occupations paid lower?

– Prejudices and stereotypes– Job evaluation methods– Payment practices– Difference between the negotiation power by

unions and accreditation units– Resistance to change during the pay equity

What is the Economic Imperative?Our population is aging and

shrinking and labour shortages are on the horizon

AndOur economy is facing

important skills shortages

YetTo improve our overall

prosperity we need more people working and with the

right skills

55

57

59

61

63

65

67

69

71

73

75

2006

Women – An Under-utilized Resource

New Brunswick women have low rates of labour force participation (3.2% below Canadian average)

The 12% Wage Gap is a proxy for the lost productivity of employed women

NB Labour Force Participation (2006)

Men 61%Men 61%

Women 55%Women 55%

Women – An Under-utilized Resource 73% of working women have children under

the age of 16 living at home (2006) Female lone parents are less likely than

mothers in 2-parent families to be employed 26% of all working women work less than 30

hours/week 1/5 female part-time workers site personal

or family responsibilities as reasoning

Impacts of Closing the Gap

Economic Gains: Increase of approximately 11% in personal

income tax collection

NB would gain an additional $105 million in personal income tax revenues

Total tax receipts would increase by $226 million (NB) and $383 million (federal)

Total rise in collective tax revenue of $609 million

Assist NB to meet self-sufficiency targets for 2026

Impacts of Closing the Gap

Strategic Corporate Gains: Increase retention & reduce turnover of staff

Strengthen recruitment efforts

Lower absenteeism

Decrease workplace stress

Improve workplace morale

Recognition as a progressive workplace

Wage Gap Action Plan

Our vision is of a New Brunswick in which there will be full

economic equality between working men and working

women.

Wage Gap Action Plan: Goals

1. Change societal attitudes

2. Increase sharing of family responsibilities

3. Reduce job clustering of women

4. Increase use of pay equity practices

Action Plan HighlightsIs a first in Canada Invests over $2.9M over five yearsIs a partnership between government and

the private sector Spells out governments commitments Suggests voluntary actions for employers Is a made-for New Brunswick solution Will be evaluated

12 Stakeholder Strategies

Goal 1: Change Societal Attitudes

1. Define a new set of attitudes;

2. Publicize new attitudes;

3. Promote new attitudes.

12 Stakeholder StrategiesGoal 2: Increase Sharing of Family

Responsibilities

4. Adopt policies that balance work and family responsibilities;

5. Expand flex-time/part-time work options;

6. Increase access to quality day care services.

12 Stakeholder Strategies

Goal 3: Reduce Job Clustering of Women

7. Ensure young women explore a wider variety of career options from an early age;

8. Re-orient/retrain women to move into a wider range of jobs;

9. Create gender-inclusive workplaces.

12 Stakeholder Strategies

Goal 4: Increase Use of Pay Equity Practices

10. Encourage the use of pay equity tools;

11. Celebrate leaders and winners;

12. Share lessons learned and best practices.

Monitoring the Action Plan

The Action Plan has well-defined measures of outcome

Government will conduct on-going monitoring of the Action Plan to: Assess for progress and success, and Make strategic adjustments where

necessary

Monitoring the Action PlanAchievement Targets:Target 1: Achieve zero pay inequity within all four

parts of the public sector. Target 2: Reduce the New Brunswick wage gap to

10% by 2010. Target 3: Females comprise a minimum of 1/3 of all

decision making positions within the Government of New Brunswick and its Boards and Commissions.

Target 4: A maximum of 1/3 of working women are clustered within the 10 most commonly held positions by women within New Brunswick

Whose Job is it to Reduce the Wage Gap?

Everyone has a role to play:

Government’s role is to lead, educate and support.

Employer’s role is to participate, publicize, and celebrate

Public’s role is to gain awareness, participate, and celebrate

N.B. Career Surf Website

www.gnb.ca (Keyword: Youth) An information portal website for

resources/info on career planning & exploration.

Target Audience: Primary - Youth (High School), general public

Key Message/Purpose: “Explore ALL of your career options”

N.B. Career Surf Website3-Step Career Planning

N.B. Career Surf Website

Information & resources on

website include: Education & Training Student Loans,

Scholarships and Bursaries

Job Links Success Stories

Wage Gap Action Plan Scholarship Goal is to help reduce the

impact that job clustering has on New Brunswick’s wage gap

To encourage people to explore a wider variety of career options

Support women and men entering non-traditional careers

Wage Gap Action Plan Scholarship

What is “non-traditional”?

Programs which have hadlimited participation byfemales and males (by25% or less) are

considerednon-traditional.

Wage Gap Action Plan ScholarshipScholarship recipients

receive: First year tuition cost, up to a

max. of $2,600 (non-renewable) paid to the institution

Mentoring and support provided by two mentors hired to support students in non-traditional programs

The opportunity to promote the career they love through the Wage Gap Reduction Initiative

Partners Building Future The three-year pilot

project is being conducted in Bathurst, Moncton and Saint John.

The goal of the project is to assist women on social assistance pursue a career in non-traditional trades.

Partners Building Future This would in turn

increase female participation in non-traditional trades and also reduce the dependency on social assistance.

Partners Building Future

Contact Information: Doug Homer

Phone: (506) 455-7252Email: partnersbuildingfutures@nb.aibn.com

Want to Know More About the Wage Gap?

www.gnb.ca (keyword: Wage Gap)

1-800-668-1010

nbwagegap@gnb.ca