wage gap and women’s economic security october 3, 2007
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Wage Gap and Women’s Economic Security October 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 – Background. - PowerPoint PPT PresentationTRANSCRIPT
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Wage Gap and Women’s Economic SecurityOctober 3, 2007
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Presentation Overview
Wage Gap Initiative Background Causes and Contributors Economic Imperative Action Plan Highlights Roles and Responsibilities Resources & Programs
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Wage Gap Reduction Initiative – Background2002 – Wage Gap
Roundtable Formed2005 – Closing New
Brunswick’s Wage Gap: an Economic Imperative
2006 – Charter for Change2007 – Employer
Conference
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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.
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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%
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Causes and Contributors to the Wage Gap
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Family Responsibilities
A changing workforce: Women in the workforce
Dual-income earners
The ‘sandwich generation’
Advancement of technology
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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
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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
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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
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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
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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%
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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
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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
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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
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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.
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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
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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
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12 Stakeholder Strategies
Goal 1: Change Societal Attitudes
1. Define a new set of attitudes;
2. Publicize new attitudes;
3. Promote new attitudes.
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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.
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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.
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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.
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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
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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
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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
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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”
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N.B. Career Surf Website3-Step Career Planning
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N.B. Career Surf Website
Information & resources on
website include: Education & Training Student Loans,
Scholarships and Bursaries
Job Links Success Stories
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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
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Wage Gap Action Plan Scholarship
What is “non-traditional”?
Programs which have hadlimited participation byfemales and males (by25% or less) are
considerednon-traditional.
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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
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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.
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Partners Building Future This would in turn
increase female participation in non-traditional trades and also reduce the dependency on social assistance.
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Partners Building Future
Contact Information: Doug Homer
Phone: (506) 455-7252Email: [email protected]
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Want to Know More About the Wage Gap?
www.gnb.ca (keyword: Wage Gap)
1-800-668-1010