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 2002 – Wage Gap Roundtable Formed 2005 – Closing New Brunswick’s Wage Gap: an Economic Imperative 2006 – Charter for Change 2007 – Employer Conference

Wage Gap Reduction Initiative – Overview Wage 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

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 Responsibilities Workplace Impacts Impacts 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 Clustering Top 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 And Our economy is facing important skills shortages Yet To improve our overall prosperity we need more people working and with the right skills

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% 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 Highlights Is a first in Canada Invests over $2.9M over five years Is 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 Strategies Goal 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 Plan Achievement 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 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  (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 Website 3-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 had limited participation by females and males (by 25% or less) are considered non-traditional.

Wage Gap Action Plan Scholarship Scholarship 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)

Want to Know More About the Wage Gap? (keyword: Wage Gap)