September 18 marks International Equal Pay Day. On this day, we recognize the strides this country has made towards pay equity, but also highlight the important work that remains to be done.  

In Canada, women earn 89 cents for every dollar earned by men for work of equal value. For Indigenous women, racialized women, and women with disabilities, it’s even less.  Gender equality will not be achieved without pay equity.   

Pay Equity Act 

PSAC is incredibly disappointed that Treasury Board is not prioritizing pay equity within the federal public service. Under the Pay Equity Act (the Act) which was introduced in 2021, federally regulated employers with 10 or more employees were given three years to establish a pay equity plan to identify and remedy gender-based discrimination in their compensation systems and practices.   

During those three years, Treasury Board did nothing to move forward with the creation of this plan. No real work was initiated by the employer until late 2023. Up until that point, PSAC and the bargaining agents were the driving force moving things along on this important issue. 

After failing to prioritize this work, Treasury Board requested in May 2024 a three-year extension to post their plan. Unfortunately, and against the recommendation of the bargaining agents, this extension was granted.  

Equal pay for work of equal value has been a legal right in Canada since 1977. PSAC fought for decades under the former complaints-based system to hold Treasury Board accountable for its longstanding practice of paying lower wages for "women's work". The Pay Equity Act was an opportunity for Treasury Board to turn a new leaf and proactively end gender-based discrimination in compensation in the federal public service. Treasury Board had three years to get this important work accomplished. Rather than prioritizing gender equity, the employer has dragged its feet and delayed the process by another three years. This is a shameful display of disrespect for a fundamental human right. 

This isn’t just a women’s issue. It affects every worker in the core public administration who holds a position that has traditionally been viewed as a woman’s role, whether it be within the fields of administration, communications, education, and others as well.  

What’s next? 

Although the extension has been granted, all pay equity adjustments owed will be payable retroactive to September 4, 2024, including compound interest. Thankfully, this means members will not be unfairly penalized.  

This government had the opportunity, as the country's largest employer, to lead by example. Sadly, this isn’t enough of a priority for them. 

PSAC will continue to pressure the employer to post the pay equity plan before the new deadline of August 31, 2027. 

Members who may become entitled to pay equity adjustments are strongly encouraged to keep a record of all positions they occupied from September 4, 2024, until Treasury Board’s pay equity plan is posted.  Members should keep copies of all letters of offer and proof of all assignments and secondments to ensure the amounts they receive correspond with the roles they occupied. We also encourage members to contact their local and get involved in this issue.