The proxy employer provides a ‘seeking’ employer with “pay equity job rates” for female job classes that are similar to the key female job classes of the seeking employer. The “pay equity job rate” is the rate that the proxy employer’s job classes would have been paid had the job class achieved pay equity on January 1, 1994 [21.11 (1)]. The proxy employer’s pay equity job rates are used to determine the pay equity gaps that exist for the seeking employer’s female job classes. Adjustments are paid to existing job classes until the pay equity target job rate is achieved, in addition to any job rate increases that may have been paid in the interim [21.11 (3), 21.22 (3)].The seeking employer maintains pay equity by ensuring that all new female job classes are paid at least the pay equity target job rate for the job class.

i. Does an employer using the proxy method compare its job rates to job classes in the proxy organization to maintain pay equity?

No. Job and wage information from the proxy organization is collected and used only once to make comparisons and to determine the pay equity target rates for female job classes in the seeking establishment. Seeking employers do not go back to their proxy employer for information to maintain pay equity.

Pay differentials between the seeking employer’s job classes and the proxy employer’s job classes after pay equity has been achieved is an issue that is beyond the jurisdiction of the Act.