TRUCKING HR CANADA RELEASES ???????

NATIONAL LABOUR MARKET INFORMATION (LMI) REPORT

Acute shortage of 20,500 drivers; Immediate action required to address adverse impacts on Canada?s economy

TORONTO (March 11, 2020) ? Trucking HR Canada (THRC) released its newest Labour Market Information (LMI) report today titled The Road Ahead: Addressing Canada?s Trucking and Logistics Industry Labour Shortage at a national launch event with attendance by industry executives, and sector stakeholders. Developed in partnership with The Conference Board of Canada and working with various leading research firms, industry stakeholders and other subject matter experts, this comprehensive study measures and assesses the full trucking and logistics industry ? providing the most informed analysis to date concerning critical labour gaps and the adverse impacts on the Canadian economy.

Emerging key themes include the urgent need to increase the number of long-haul drivers, increase women?s participation, develop approaches to effectively reach millennials, and identify best practices that specifically support better recruitment and integration of more diverse labour talent.

KEY FINDINGS: QUANTIFYING THE SHORTAGE AND IMPACT

The Road Ahead: Addressing Canada?s Trucking and Logistics Industry Labour Shortage reveals that:

• In recent years, the trucking and logistics sector employed 3.6% of Canada?s workforce, which translates into over 650,000 workers.
• Truck transportation industry average job vacancy was 6.8% in 2019; double the Canadian average of 3.3%, and highest among all industries (outside of crop production). Of particular concern – long-haul drivers had an exorbitant 9.4% average job vacancy rate.?? ????????????????
• While truck drivers represent 46% of the industry, they account for 63% of its job vacancies.
• The total number of truck driver vacancies in Canada has increased over 138% between 2016 and the first three quarters of 2019 ? escalating from 8,600 to 20,500 during this timeframe.
• Hiring is taking longer than anticipated by HR professionals, who are being bogged down with increased recruitment pressures and frustrations, and by more complex compliance issues.
• The driver shortage has directly led to delayed planned expansions by trucking operators, and resulted in lost sales in the truck transportation industry by an estimated 4.7% in 2018, equivalent to roughly $3.1 billion in lost revenues.
• Without meaningful action, vacancies are expected to soar to 25,000 by 2023, an increase of over 25% from 2019.

The report findings articulate the critical ?supply vs. demand? driver shortage, and inform the positive actions the industry is taking now and ongoing that demonstrate that trucking today is different.

?We are at a pivotal decision and action point,? stated Angela Splinter, CEO of Trucking HR Canada. ?Good salaries in a growing sector, better work-life balance, investments in innovative technology and green-friendly initiatives are just some of the approaches we are taking. We need to do more to resolve industry challenges to ensure a stable and reliable trucking transportation network for the road ahead.?

THE IMPACTS OF CANADA?S CRITICAL DRIVER SHORTAGE ON CANADA?S ECONOMY

The trucking sector:

• Carries an estimated $550 billion worth of goods purchased by Canadians and more than $300 billion worth of Canadian goods destined to export markets.
• Generates well-paying middle-class jobs, employing more than 650,000 workers.
• Connects consumers, businesses and international markets that are vital to our economy?s stability and performance.
• Is integral to Canada?s nine other critical infrastructure sectors: energy and utilities, information and communication technology, finance, health, food, water, safety, government, and manufacturing.
• Is a key element in our nation?s intermodal transportation network that links trucking, rail and shipping, and provides an essential contingency during disruptions in other transportation modes (i.e. rail).

?The acute shortage of truck drivers in Canada is felt beyond the trucking industry,?confirmed Kristelle Audet, Principal Economist, The Conference Board of Canada. ?Trucking is a lifeline for key industries such as forestry, agriculture, auto manufacturing, construction, as well as wholesale and retail.?

?Our country relies on skilled workers to keep our economy growing. Quality labour market information allows us to identify industry needs and enables us to take action to ensure a stable and reliable trucking industry in Canada,? stated The Honourable Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion. ?Today?s report highlights workforce opportunities that can lead to Canadians securing well-paying, good quality jobs in this sector.?

To download The Road Ahead: Addressing Canada?s Trucking and Logistics Industry Labour Shortage, please click here.

National Launch Event Webcast: Please click? here to register and view the announcement.

Today?s report release is followed by a Workforce Knowledge Exchange event, which will take a deeper dive into the research findings, and have industry stakeholders provide input into solutions as we move forward.

March 12 marks Trucking HR Canada?s annual Women with Drive Leadership Summit ? presenting and exchanging best practices to recruit and retain women. This national event follows a series of regional Women with Drive events engaging local industry members to examine regional challenges and opportunities.

This fall, the industry will launch a national campaign to recruit young workers and address out-dated misperceptions.

Stay tuned for our next labour market information releases, with more practical recommendations to keep this vital industry driving forward.

ADDITIONAL RESEARCH

Our Millennials Have Drive 2 report (July, 2019) highlights our youth research that probed the perceptual barriers and how young people view our industry, while also identifying where we can realistically target recruitment efforts.

Trucking HR Canada is a national, non-profit organization, advancing modern HR solutions for the trucking and logistics workforce. We collaborate, partner, and work with a dynamic network including industry associations, government departments and industry professionals to ensure Canada?s freight transportation network has the skilled workforce needed for today and into the future.

ACKNOWLEDGEMENTS

Trucking HR Canada (THRC) engaged The Conference Board of Canada to undertake the research that is the basis for this report.

We would also like to thank and recognize our partner The Canadian Trucking Alliance (CTA).

This project is funded in part by the Government of Canada’s Sectoral Initiatives Program (SIP).

CONTACT:

Angela Splinter, CEO
[email protected]
613-244-4800 x 304

Labour shortages in trucking and logistics are an ongoing concern. Employers and employees across the country feel increasing pressure from longer recruiting processes, reduced productivity, and the fact that our pool simply continues to shrink.

To quantify the problem, Trucking HR Canada (THRC) launched a Labour Market Information Project in the summer of 2018. More recently, we partnered with The Conference Board of Canada on a comprehensive survey to more accurately assess the industry?s labour needs.

This work is important for businesses in trucking and logistics. But it?s also clear that understanding the industry?s labour needs affects all Canadians.

In 2019, the trucking and logistics sector employed 3.6% of Canada?s workforce, or just over 650,000 workers. And, while 45% of these employees are truck drivers, we also employ close to 90,000 people in shipping and receiving, close to 88,000 delivery and courier service drivers, and just over 36,000 material handlers at warehouses and distribution centers.

The size of our impact

Transportation is one of 10 critical sectors on which Canada?s economy and national security depends, as identified by Public Safety Canada?s ?National Cross Sector Forum 2018-2020 Action Plan for Critical Infrastructure.?

Trucking and logistics companies connect consumers, businesses, and international markets that are vital to our economy. According to the Conference Board of Canada, the sector carries an estimated $550 billion worth of goods purchased by Canadians and more than $300 billion worth of Canadian goods destined to export markets (this does not even include wheat and crude oil).

And we support the nine other critical infrastructure sectors: energy and utilities, information and communication technology, finance, health, food, water, safety, government, and manufacturing. These pillars of our economy depend on a healthy trucking and logistics industry.

The size of our workforce

In 2019, the trucking and logistics sector employed 3.6% of Canada?s workforce, or just over 650,000 workers. And, while 45% of these employees are truck drivers, we also employ close to 90,000 people in shipping and receiving, close to 88,000 delivery and courier service drivers, and just over 36,000 material handlers at warehouses and distribution centers.

And let?s not forget the many others who keep operations going: an estimated 40,000 managers, supervisors, and administrative staff, and 9,000 accounting personnel.

The size of our problem

According to Statistics Canada?s Job Vacancy and Wage Survey, the truck transportation industry experienced an average job vacancy rate of 6.8% in 2019. This is the second-highest vacancy rate among Canadian industries after crop production, and more than double the national average of 3.3%.

Put differently, we?re unable to fill roughly one out of 15 open positions, most of them truck drivers. In fact, the total number of truck driver vacancies in Canada has increased from an annual average of 8,600 in 2016 to 20,500 in the first three quarters of last year.

Against this backdrop, it may come as little surprise that 61% of employers who responded to our survey reported difficulties filling truck driver positions within the past year.

One reason is demographics. According to the 2016 Census, 32% of truck drivers in Canada are 55 years or older compared to 21% of the entire Canadian labour force. More than 6% of our drivers are 65 and older. It is difficult to compete for younger workers.

Call to action

Our industry?s shortage of workers?and drivers in particular?affects individual businesses, Canada?s transportation infrastructure, and the overall economy.

We need to work quickly on solutions. As a first step, on March 11, we?re making sure everyone is aware of the severity of the situation.

We?re now finalizing our briefing report in partnership with the Conference Board of Canada and will release the results of our Labour Market Information Project at a press conference in Toronto on March 11 at Noon EST.

If you cannot make it to Toronto, please register to watch the event live via our web cast. We also encourage you to reach out to your provincial trucking association. Many will be joining via webcast in their offices.

Immediately following the press conference, we will hold a Workforce Knowledge Exchange?a discussion that will focus on identifying specific actions now that we have comprehensive data about our labour market.

Space is still available. Feel free to reach out to [email protected] to learn more.

Everyone wants to be paid well and paid fairly. And employers want to be competitive with their compensation. It’s good business to make sure what you’re offering is up to date, on trend, and able to both meet the needs of your workers and attract your next generation of employees.

Let’s look at three things to consider:

Hourly pay

Last year the demand for freight services significantly outpaced the supply of qualified drivers, which in turn put strong pressure on wages. Our latest labour market information research shows significant changes in compensation for truck drivers in 2018, often involving double-digit percentage increases.

To attract prospective drivers, there seems to be a shift away from mileage pay toward hourly pay, especially in the long-haul segment. While this approach would require some operational changes, employers are noting that hourly pay is easier for younger workers to understand and makes it simpler to calculate overtime pay for truck drivers.

Total compensation

Total compensation refers to the overall value of what you are offering your employees in both direct and indirect benefits. Direct benefits include wages or salary, while indirect benefits include bonuses, vacation days, allowances for tuition and training, uniform allowances, and other items not reflected on a paycheque.

It’s important to identify everything you offer and to communicate them to your staff, especially your drivers. In a market where drivers frequently compare pay packages, your ability to clearly explain the total compensation you offer will help them make informed decisions before jumping ship – and to accurately explain their pay and benefits to drivers in their “grapevine.”

Our website has templates that can assist here. If you are not currently providing total rewards statements to your employees, this is something you may want to look at.

It’s important to identify everything you offer and to communicate them to your staff, especially your drivers.

Tailored benefits

There are numerous ways you can shape your benefits package to the needs of your workers. The most important step is to engage employees in this conversation so you can identify things that matter most to them and incorporate them into a tailored pay package.

One example is a focus on financial wellness. With a large percentage of the trucking workforce nearing retirement, this is a real concern for a lot of workers. A recent survey by the Canadian Payroll Association shows that 43% of workers are so financially stressed that their performance suffers.

Including financial wellness in an overall benefits plan can not only make your offering more competitive, it will genuinely help employees’ peace of mind while also improving productivity.

Communication

Your employees need to know – and understand – their compensation package. Through effective onboarding, regular staff meetings, or through the various channels you use to communicate with your employees, make sure your employees are informed.

Clearly articulating and explaining in detail the total value of employment to employees could be a deciding factor in whether they stay with you or leave. And in a labour market where employees are focused on their bottom dollar, it just makes sense that you do everything you can to make them stay.

The trucking industry devotes a lot of attention to the recruitment and retention of drivers. This makes sense, as truck drivers represent more than 45% of the industry’s workers.

But other occupations in trucking and logistics deserve consideration, too.

Our report, “Labour Market Information: Interim Report September 2019,” profiles a wide range of job types, including technicians, material handlers, office administrators, human resources staff, and supervisors.

One of the most essential occupations is dispatchers, who make up about 2% of the workforce but play a substantial and unique role in the industry.

From the 2016 Census data, which is the most current data available from Statistics Canada, we know:

• There are 16,730 dispatchers working in Canada’s trucking and logistics industry
• Regionally, 12% of these dispatchers are in B.C.; 15% in Alberta; 7% in Saskatchewan and Manitoba; 39% in Ontario; 22% in Quebec; and 5% in Atlantic Canada
• Women make up 39% of the dispatcher workforce
• 19% of dispatchers are newcomers to Canada
• 19% are visible minorities
• 4% of dispatchers are Indigenous

As well, there is a strong cohort of millennials-31% of dispatchers are between the ages of 15 and 35. On the other end of the spectrum, 17% of dispatchers are over the age of 55.

Dispatchers tend to be educated. Nearly 42% of dispatchers have their high school diploma and an additional 34% have post-secondary education.

Put the Data to Work

Employers can apply this Census data to dispatcher recruitment and retention, shaping their policies and practices to better support their staff.

For example, with 17% of dispatchers over the age of 55, employers may want to pay closer attention to retirement rates among their workers, and potentially focus their recruitment efforts on replacing those retiring workers.

With 31% of dispatchers between the ages of 15 and 34, employers may want to place more attention on maternal/parental leave policies or flexible work arrangements in order to appeal to this important demographic.

Another issue to consider is how technology is affecting dispatchers and the requirements of the job.

Will new technology change the need for dispatchers, which could result in employment levels going up or down? Will it require job candidates with more training or education? We will continue to monitor the skill requirements and changes within the labour market as technology continues to affect how the industry works.

Help Us Complete the Picture

The available data provides a snapshot of who is currently working within the industry. It gives us a clear view of their demographic makeup, education levels, and where people are working.

But government surveys provide only part of the labour-market picture.

We are currently asking employers to complete a more focused, industry-specific survey that will help us fill in some of the blanks in the StatsCan data. We need as many employers as possible to complete it so we can ensure the information we report is as accurate and representative of the industry as possible.

Our survey will be open until the end of October and can be accessed here.

If you are an employer or work in HR for a truck fleet, we hope you can take time to complete this survey.

As we continue our labour market information project, we will be releasing more data as it becomes available, along with our final report in Spring 2020. Subscribe to our newsletter to ensure you remain on top of all of the updates.

No matter the size of the company, a business cannot thrive without a team of reliable, competent, well-managed people.

And smaller companies face more challenges in this regard.

Small business owners often have a strong understanding of their industry but not necessarily how to manage people, or they take on responsibilities that span various management roles.

Under these circumstances, it’s hard for small businesses to give HR the attention it needs.

This is especially true in trucking and logistics. According to Trucking HR Canada’s labour market information, the vast majority of trucking firms in Canada have fewer than 20 employees.

Clearly, with so many small carriers in the industry, there’s a need for HR guidance and support.

We are here to help. Let’s take a look at some tips for small fleets:

Know the law

No small business owner can be aware of every employment and labour code law. But they should at a minimum be familiar with the big ones.

Whether you’re provincially or federally regulated impacts which laws you need to comply with, and knowing the difference will matter. For instance, federally regulated companies are affected by many new Canada Labour Code changes. We are working to support employers in this regard, and subscribing to our newsletter will help keep you in the know.

Document your HR policies and approaches

Put your HR policies and approaches in writing. This can be in the form of an employee handbook or a policy manual. Regardless, it’s important to clearly state the standards of behaviour in your organization and how things should be done.

Well-written guidelines and policies provide a basis for resolving problems fairly and consistently. They can also serve to keep your workplace practices in compliance with employment and labour standards.

Put your HR policies and approaches in writing.

Onboard effectively

Getting off to a good start means you should have an onboarding program for all new hires, no matter the size of your company. This is particularly important for your drivers.

Your onboarding program gives you the opportunity to review your handbook or organizational policies and clarify things like how and when people will get paid; your culture, goals, and business objectives; and your performance expectations. These are all important factors that will support a positive work environment where employees know what they can expect from you and what you expect from them in return.

Consider out-sourcing

With you and your employees likely wearing many hats, consider outsourcing your HR functions. There are a variety of payroll services, HR software platforms, or HR consulting firms that can help. And, when it comes to employment and labour standards, you may even consider the services of an employment law lawyer.

Outsourcing gives you access to the professional services you need when you need them, while also managing risk, and allowing you to focus on other aspects of the business.

Learn from others

Clearly, there are many companies out there like you! And there are ample opportunities for networking. From local transportation clubs to provincial and national associations, find a group that works for you and use these opportunities to learn from others.

And don’t discount the larger trucking and logistics industry association events that you may think are more suited for larger companies. I have heard from many small fleet owners about the learning and business benefits they get from attending and being a part of these groups.

…find a group that works for you and use these opportunities to learn from others.

Highlight your unique offerings

Small companies have unique qualities that make them stand out from the competition. Do you have a welcoming, family-friendly work environment? Do you offer profit sharing or unique revenue-sharing approaches? Do you have regular routes, or flexible work arrangements?

Small fleets often don’t recognize the various things they do that make them attractive. Talk to current employees and find out what keeps them with you, and highlight this in your recruitment efforts.

Overall, remember that effective HR approaches are important for businesses of all sizes. Make sure they become a key part of your business strategy, then watch your business grow.

OTTAWA, ON (September 26, 2019) ? Trucking HR Canada has released an interim labour market information report with the most up-to-date, and accurate workforce data currently available for the Canadian trucking and logistics industry.

Trucking HR Canada has partnered with The Conference Board of Canada and has produced a preliminary, interim report highlighting current occupational representation, vacancy rates, workforce demographics and more.

?We are working to ensure the industry as a whole and employers have accurate, relevant and timely labour market information?, says Angela Splinter, CEO of Trucking HR Canada. Interim findings show a high vacancy rate, and overall employment growth combined with low unemployment and an upward surge in wages. ?All compelling evidence the industry faces a driver shortage.?

In addition to this report, Trucking HR Canada continues to seek input from employers through a comprehensive, national labour market information survey.

To participate in the survey visit: www.truckinghr.com/truckingsurvey

To access the report visit: https://truckinghr.com/lmi

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This project is funded in part by the Government of Canada?s Sectoral Initiatives Program (SIP)

Trucking HR Canada is a national partnership-based organization that is dedicated to developing, sharing and promoting the trucking industry?s best practices in human resources and training.

For further information, contact:
Bridget O?Shaughnessy
Manager, Marketing and Communications
[email protected]
613-244-4800 x 302

OTTAWA, ON (July 23, 2019) ? Trucking HR Canada has launched a new report, Millennials Have Drive 2, examining the findings from research conducted through Abacus Data, which surveyed over 2000 millennials across Canada to find out why they aren?t entering the trucking and logistics industry. The report, which builds on the Millennials have Drive roadmap, provides practical tips and insights on how employers can be more successful in recruiting from the millennial talent pool in an age where competition is high for qualified talent.

When looking at six industries, survey results showed that millennials gave the trucking transport industry the lowest positive impression (46 per cent ?very good and good?), compared to the construction industry which got the highest positive impressions from millennials (68 per cent ?very good and good?), making it trucking?s #1 competitor in recruiting millennials.

It?s not all bad news though. The report also identified warm trucker leads, finding that 12 per cent of millennials (approximately 1.1 million Canadians aged 18 to 36) are interested in a career in long-haul trucking. One of the biggest barriers to entry for this warm-leads group was time and money. Over one-third (38 per cent) think it?s overly expensive to pursue long-haul trucker training and get licensed, steering many into other industries, like construction.

Modernizing your HR approaches with flexible work arrangements, commitment to professional development and training and strong employee communication programs are only some of the recommendations that employers will find outlined in detail in the report.

Canada?s trucking industry wants and needs millennial employees. It?s evolving and it?s innovating, offering tremendous career opportunities for millennials to do satisfying, fulfilling work in a wide range of occupations.

To download your free copy of Millennials Have Drive 2, visit Trucking HR Canada?s website at: https://truckinghr.com/millennials

This project is funded in part by the Government of Canada’s Sectoral Initiatives Program.

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Trucking HR Canada is a national partnership-based organization that is dedicated to developing, sharing and promoting the trucking industry?s best practices in human resources and training.

For further information, contact:
Bridget O?Shaughnessy
Manager, Marketing and Communications
[email protected]
613-244-4800 x 302

OTTAWA, ON (June 25, 2019) ? Trucking HR Canada, with support from Indigenous Services Canada, announced today a new project focused on Indigenous youth. Over the next year, Trucking HR Canada will be working in collaboration with Indigenous organizations to deliver career awareness resources to Indigenous youth in northern Canada.

As the fastest-growing demographic in the country, Indigenous youth, are largely under-represented across all occupations within the trucking and logistics industry. Ultimately, this project will provide an array of resource materials geared towards better serving the needs of this growing demographic. In partnership with Carcross/Tagish First Nations, a workshop will be held in 2020 to showcase these career awareness resources and tools in the Yukon.

?We are pleased to partner with Indigenous Services Canada, and the Carcross/Tagish First Nations in promoting the range of careers available in trucking and logistics.? Says Angela Splinter, CEO of Trucking HR Canada, ?We will also work to build relationships with groups that can help our employers better connect with all labour pools.?

Indigenous Services Canada (ISC)’s First Nations and Inuit Youth Employment Strategy (FNIYES) is part of the Government of Canada’s effort to enhance Indigenous Canadians’ education, participation in the labour market and economic success.

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Trucking HR Canada is a national partnership-based organization that is dedicated to developing, sharing and promoting the trucking industry?s best practices in human resources and training.

For further information, contact:
Bridget O?Shaughnessy
Manager, Marketing and Communications
[email protected]
613-244-4800 x 302

“Modernizing your workforce starts with modernizing your HR approach.”

In today’s labour market, successful truck fleets and logistics companies know that staying abreast of the issues will help them stay ahead of the competition. Follow our “Modernizing Your HR Approach” blog series as we navigate emerging trends and share tips for finding, hiring, and retaining the talent you need.

Concerns about finding and retaining drivers is a constant theme in our conversations with fleet managers, to the point where carriers are parking trucks and turning away business.

We also know that the industry’s HR challenges run deeper than the driver pool. Trucking and logistics companies are telling us how difficult it can be to compete with other industries for IT workers, administrative personnel, and more.

Clearly, attracting and retaining all types of workers is a problem that we need to understand and solve.

We’re on it.

Trucking HR Canada is currently compiling labour market data that will put this industry’s hiring, training, and retention issues in perspective, help identify key challenges, and develop tools and mechanisms to effectively address them.

Initial findings reveal some important information about the driver shortage in Canada’s trucking industry. Here is what the data is telling us:

There are more drivers today – and more openings

The number of transport truck drivers employed in the Canadian economy has increased by almost 86,000 workers since 1996. That’s a whopping 37 percent gain, with more than 317,000 truckers employed in 2018.

However, trucking and logistics has one of the highest vacancy rates at 6.6%. We currently have more than 20,000 unfilled truck driver positions in Canada, more than double the number of vacant driver positions we had in 2016.

Unemployment among truck drivers is 34 percent lower than the average in the Canadian workforce. In fact, between 2016 and 2018, the unemployment rate for Canadian truck drivers decreased from 6.6 percent to 3.8 percent.

Demographic changes are a threat and an opportunity

When you consider that 60 percent of truck drivers in Canada are over the age of 45, and half of those workers will be eligible to retire in the next three to five years, it’s no wonder so many employers are unable find the experienced drivers they need to fill over 20,000 vacant positions.

Let’s not forgot about millennials. Less than 18 percent of truck drivers in Canada are from the millennial generation-people born between the early 1980s and the early 2000s-compared to 34 percent in the overall workforce.

And by now we all should know these stats on women: according to Statistics Canada, 97% of truck drivers are male, yet women make up close to 50% of the workforce.

Troubling data to say the least.

We need better data

More troubling is that the federal government and other public sources often produce data that tell only part of the story.

For example, Statistics Canada uses outdated definitions for the training, skills, and experience required to work in the trucking industry today. The compensation data is too broadly captured for it to mean anything. And the data does little to help clarify what changes the industry can expect in the future.

Other details are missing, too.

For example, when Statistics Canada compiles data on job postings, it ignores important information like the demand for specialized skills or licenses, like transporting dangerous goods; the number of short-haul versus long-haul jobs; how many vacancies are in private fleets compared to for-hire; and the list goes on.

Talk to us. We’re listening

To put this industry’s hiring and retention concerns into proper perspective, we need to talk to fleets directly. We’re here to listen.

Trucking HR Canada, in partnership with the Conference Board of Canada, will be reaching out to you to find out more. We want to hear from employers directly. It may take some of your time, but it is this primary data, combined with the statistical data, that will help us all better understand our HR problems.

This, in turn, will enable us to better articulate our needs to government, career seekers, and educational institutions.

Stay tuned, and we hope to have industry participation in this important work.

Modernizing your workforce starts with modernizing your HR approach.

In today’s labour market, successful truck fleets and logistics companies know that staying abreast of the issues will help them stay ahead of the competition. Follow Trucking HR Canada’s 10 part “Modernizing Your HR Approach” blog series as we navigate emerging trends and share tips for finding, hiring, and retaining the talent you need.

Miguel Mangalindan is a Senior Associate Lawyer at Monkhouse Law where he practices Employment, Human Rights and Disability Insurance Law. He was a panelist at Trucking HR Canada’s Mental Health symposium last October, and recently participated as one of the Learning Highway session presenters at Women with Drive, sharing insights on how Bill C-86 will impact you. This week, we invited him to again share his expertise with us through our Blog Series.

On December 13, 2018, the federal government’s Bill C-86, which among other things establishes a new Pay Equity Act, received royal assent. The Act will require federally regulated employers to make sure that employees in female-dominated jobs receive the same level of compensation as those in male-dominated jobs of similar effort, responsibility, skill, and working conditions.

In short, it aims to ensure equal pay for work of equal value.

Who has to comply?

The Pay Equity Act applies to federal workplaces with 10 or more employees. This includes public services; Crown agencies and private companies that operate a federal work, undertaking, or business; and any employer with more than $1 million in federal government contracts.

Employers will have three years to establish a pay equity plan once the Act comes into force, and have to review and update their plan at least once every five years. Different deadlines apply to provincially regulated employers that become subject to the Act due to becoming federally regulated after the Act comes into force.

What is a Pay Equity Plan?

According to the Act, a pay equity plan must do the following:

• Indicate the number of employees and job classes within the workplace;
• Indicate what gender is predominant in each class;
• Evaluate the value of work performed by each job class;
• Identify the compensation associated with each job class and compare female- and male-predominant job classes of similar value;
• Set out the results of the comparison, identifying which female-predominant job classes require an increase in compensation and when those increases are due; and
• Provide information on the dispute-resolution procedure available to employees.

How do you put this plan into action?

In terms of process requirements, there must be a committee that creates the pay equity plan, notice of the plan to all employees, and then implementation. The employer must also maintain pay equity after the initial plan and payouts are made.

The Act specifies the members of the pay equity committee as well as the contents of the plan. It also sets out a formula for how to compare male and female jobs. There are rights of appeal to a new federal Pay Equity Commission that will be part of the Canadian Human Rights Commission.

The federal government has yet to proclaim a date when the Act will come into force but there will be some grace period allowed for implementation.

In the meantime, federally regulated employers should start reviewing their compensation systems and begin the process of planning and implementing pay equity, which will take lots of time, expertise, and resources to do.