1. Info sessions on pay equity February 2014

2. Pay Equity Act The purpose of the legislation is to redress differences in compensation due to the systemic gender discrimination suffered by persons who occupy positions in predominantly female job classes. 2 Human Resources

3. Pay Equity Legislation Steps: – Determine job classes (example PED34, ADM2A, Painter, librarian,…) – Determine gender predominance of each job class – Determine value of job classes – Determine maximum hourly rate of each job class – Make regression of male job classes (compensation versus value) – Compare positioning of female job classes versus regression curve of male job classes – Make adjustments to salary for all employees of female job classes requiring increases 3 Human Resources

4. Pay Equity Legislation Determine gender predominance of job classes – 60% + women = female predominance – 60% + men = male predominance – Between 40% and 60% = neutral job class 4 Human Resources

5. Pay Equity Legislation Determine value of job classes – Qualifications – Responsibilities – Physical and mental effort – Working conditions The value of all these job classes were determined in 2001 by a pay equity committee with representatives from all employee groups Example: second cook: 134 points, PED153: 261 points 5 Human Resources

6. Determine salary rate Salary rate used is the maximum of the salary scale applying to the job class – Not the actual salary paid to an employee nor the average salaries paid to all employees in the job class Salary scales exist for M and MUNACA (CAUTION: there were multiple salary scales in 2001 for single job classes) Fixed rates for SEU job classes No salary scale for all academic job classes – Rank for all job classes, all salary rates paid to all incumbents – Take the salary paid for the employee at the 90e percentile assuming the top 10% are “workforce shortage” 6 Human Resources

7. Make regression analysis Make a regression analysis of job classes with male gender predominance Regression of hourly rates versus values of job classes There are different methods for conducting a regression analysis. McGill’s method was approved by CES in 2001. Reason for the complaints and the issue of the conciliation process with CES 7 Human Resources

8. Make regression analysis 2001 regression results 8 Human Resources

9. Positioning of female job classes Compare positioning of all job classes with female gender predominance to regression curve Only the female job classes below the regression line are adjusted UP TO the regression results only Male job classes below the regression line are NOT adjusted All job classes (male and female) above the regression line are NOT adjusted Neutral job classes are not even considered 9 Human Resources

10. How to make salary adjustments First of all, only feminine job classes which were below the regression line – List of job classes is available on HR site (examples PED 34 and PED 103) Secondly, it is the MAXIMUM rate which is adjusted to the new pay equity rate (which is the rate on the curve) – There were multiple salary scales for each PED or role profiles in 2001 (some below, some above the curve) Then, if employee is in a PED and a salary scale with a required adjustment, the employee gets a proportional adjustment 10 Human Resources

11. Example for PED34 Salary scales Max. rate of that scale in 2001 Max. rate required by pay equity curve Total adjustment required C04$18.34$22.46$4.12 C05$18.67$22.46$3.79 C06$19.49$22.46$2.97 C07$20.63$22.46$1.83 C08$21.46$22.46$1.00 C09$22.79$22.46None C10$23.47$22.46None L05$18.67$22.46$3.79 L06$19.49$22.46$2.97 11 Human Resources

12. Example for PED103 Salary scale Max. rate of that scale in 2001 Max. rate required by pay equity curve Total adjustment required C05$18.67$21.40$2.73 C06$19.49$21.40$1.91 C07$20.63$21.40$0.77 C08$21.46$21.40None C09$22.79$21.40None C10$23.47$21.40None 12 Human Resources

13. How individual adjustments are made Adjustments are spread over 5 payments dates: November 2001, 2002, 2003, 2004 and 2005 Example for PED 34 and salary scale C08: – Total adjustment is $1.00 – Adjustment to max of scale of $0.20 on each of 5 dates mentioned above – Employees get a prorated adjustment depending on their actual salary rate 13 Human Resources

14. What did McGill do over the past 12 months? We extracted on a monthly basis a list of all employees working at McGill in any positions We “sifted” every single monthly file to extract every employee who was at one point in time in one of the affected job classes/positions After we compiled a comprehensive list of affected employees, we extracted detailed information on every single paycheck received by each of these employees (including info on regular hours, overtime hours, vacation pays, etc.) received in each of these pay checks 14 Human Resources

15. What did McGill do over the past 12 months? We extracted for each of these employees their career history at McGill (all salary increases, temporary assignments, rematches of position, transfer to another position, etc.) We investigated and reconstructed every salary policy since 2001 for all employee groups (renewal of collective agreements, economic increase in salary scales, progression in scale, across the board adjustments, merit increases, …, to be sure to apply the same increase to the adjusted pay equity rates) 15 Human Resources

16. What did McGill do over the past 12 months? We wrote different programs in Excel/Visual Basic for each employee group Every single employee in all employee groups was individually processed on a pay per pay basis checking with his/her individual career information Computation was done by one compensation advisor and quality reviewed by another person – More complicated cases were reviewed by the team 16 Human Resources

17. What about income tax and other deductions? The pay equity retro payment is considered income and taxed as such – McGill tried as best as possible to deduct income tax at the highest marginal tax rate applicable – You are still responsible for possible additional income taxes to be paid when you file your income tax return in April 2015 Employee and McGill contributions to the pension plans were also computed retroactively considering effective rates of contributions during the past years and your age at each of prior pay dates Contributions to QPP, QPIP, EI or similar programs are also deducted NOTE: It is possible that you will reach (or reach faster) the ceilings on contributions to all these programs due to the size of your retro payment 17 Human Resources

18. Next steps Payments of retro payments to terminated employees Answer to individual questions through e-mails Adjustments of salary rate when needed – Last pay check of March (including retro between January and March) Discussion with some unions about recently raised concerns and possible additional adjustments Pay equity maintenance as of December 31, 2010 with official postings for comments 18 Human Resources

19. Questions ? ? 19 Human Resources