Time to launch long-delayed public service pay-equity plan

The following op-ed by Sharon DeSousa, PSAC National President, was published in the The Hill Times

Five years have passed since the United Nations first declared Sept. 18 as International Equal Pay Day. In 2025, we honour the hard-fought progress women in Canada have made toward achieving gender equality. 

Our union, the Public Service Alliance of Canada (PSAC), has always been at the forefront of this fight. Since the groundbreaking strike action in 1980, PSAC members' collective actions have resulted in landmark victories for women. At that time, more than 10,000 members in clerical and regulatory jobs—75 per cent being held by women—secured a 24.8 per cent wage increase. Despite this, the fight for pay equity and gender equality isn’t over, especially as we risk losing this progress.

While Canada’s government made a commitment to achieving gender equality under the UN’s 2030 Agenda for Sustainable Development, we are behind on meeting these goals. The latest data shows women in Canada still earn just 89 cents for every dollar earned by men for work of equal value. This gap is even wider for Indigenous women, racialized women, women with disabilities, and other equity-deserving groups.

Our union was instrumental in pushing this government to pass the Pay Equity Act. With it coming into effect in 2021, it looked like Canada was moving in the right direction. However, the federal government has yet to implement a pay equity plan for workers in the core public administration, requesting an extension until August 2027 when the act originally put 2024 as the deadline.

We’re years behind, and the Office of the Pay Equity Commissioner (OPEC) is severely understaffed, causing delays and challenges for employees attempting to resolve disputes against employers. Unfortunately, the World Economic Forum’s observation might be right: at our current pace, it will take another five generations—2158—to achieve gender parity.

To make matters worse, Budget 2025 will be tabled on Nov. 4, following a rushed Comprehensive Expenditure Review launched this past July. Federal departments had until Aug. 28 to find 15 per cent in savings over the next three years. This happened to be the same deadline for pre-budget consultation submissions. The next budget could call for damaging cuts, placing the successful implementation of the Act and the reality of achieving gender equality in Canada at risk.

We should be worried. The Canadian Centre for Policy Alternatives warned that Women and Gender Equality Canada (WAGE) could face cuts of up to 80 per cent. While some treat funding dedicated to advancing women’s rights and gender equality as expenditures our government can eliminate from its budget without consequence, the truth is this country’s economic stability depends on an equitable society.

Women’s participation in the workforce has accounted for one-third of Canada’s economic growth over the past 40 years. Ensuring the act's timely implementation is not only about correcting a long, overdue, historic wrong, it’s also about generating valuable returns—it will directly impact over 1.3 million workers across the country. Canada will be stronger because of it.

With OPEC struggling with limited resources, compliance issues, and delays with case resolutions, proper funding is essential for pay equity as a reality. With cuts, implementation could stall altogether, leaving workplaces and staff across the country worse off. This could cost us more in the long run. The deadline to submit pay equity plans has already been extended to Aug. 31, 2027. Without urgent action, even that target may be missed.

This speaks to a bigger systemic issue. Prime Minister Mark Carney’s initial decision to exclude a WAGE minister from his post-election cabinet drew public outcry. While a minister was eventually appointed following public pressure and scrutiny, the move did cast doubt on his government’s commitment to gender equality as a key priority.

The expenditure review’s projected cuts could rival the austerity measures of Jean Chrétien’s 1995 budget—cuts much deeper than those from the Stephen Harper era. Budget 1995 had lasting negative impacts on women and equity-deserving communities. Carney had already confirmed the intent for the government to implement austerity measures into the upcoming budget. Canada can’t afford to repeat the same mistake.

Critical funding for gender equity programs and advocacy organizations is vital—it’s not just about meeting the UN’s 2030 goals, it’s about building a strong, resilient economy. 

As Budget 2025 approaches, PSAC will continue to fight for the successful implementation of the Pay Equity Act, and support our members who are helping to shape federal sector pay equity plans.

It’s time for this government to adequately invest in the Office of the Pay Equity Commissioner to ensure they can enforce compliance and resolve disputes in a timely manner. Pay equity was won through the collective action of workers—it wasn’t gifted to us. There is no Canadian economy without women’s labour. 

Recognizing women for their contributions to this economy is long overdue. Canada can’t wait until 2158—we need action now. 

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September 25, 2025