Practice on Equal Pay for Work of Equal Value 28 October 2014 - - PowerPoint PPT Presentation

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28 October 2014 Presented by: Lionel van Schalkwijk PE Corporate Services SA (Pty) Ltd Tel: 031 700 1597

Draft Code of Good Practice on Equal Pay for Work of Equal Value

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Draft Code of Good Practice on Equal Pay for Work

• f Equal Value

Objective

Code seeks to promote remuneration equity in the workplace by providing practical guidance

• n how to apply the principle of equal

remuneration for work of equal value.

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Scope This Code is issued in terms of section 54 of the Employment Equity Act, 1998 and applies to all employers and employees. The Code promotes the elimination of unfair discrimination in respect

• f remuneration by applying the principle of equal remuneration for

work of equal value. The term "remuneration" includes any payment in money or in kind, or both, made or owing to any person in return for working for another person, including the State. Remuneration includes

• deferred remuneration,
• commission, and
• ther forms of variable compensation or pay

Draft Code of Good Practice on Equal Pay for Work

• f Equal Value

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Eliminating Unfair Discrimination in respect of Remuneration An employer must take steps to eliminate differences in terms and conditions of employment, including remuneration – emphasis on identifying differences based on historical reasons. Three key considerations when considering remuneration equity

• Are the jobs that are being compared the same, substantially the same
• r of equal value ITO an objective assessment? – Job Evaluation
• Is there a difference in the terms and conditions of employment,

including remuneration.

• If there are differences in the terms and conditions of employment, can

these be justified on fair and rational grounds? Draft Code of Good Practice on Equal Pay for Work

• f Equal Value

Differences are not unfair discrimination where the employees in question do not perform the same or similar work or work of equal value. Establish a Social Ethics Committee – monitor compliance with Employment Equity King III recommends that all employer entities establish a Remuneration Committee which should annually review all remuneration and benefits received by employees to ascertain whether they are appropriate and competitive. Draft Code of Good Practice on Equal Pay for Work

• f Equal Value

Draft Code of Good Practice on Equal Pay for Work

• f Equal Value

Evaluating Jobs In order to ascertain the value of the job for the purpose of applying the principle of equal remuneration for work of equal value, an

• bjective assessment in accordance with relevant and appropriate

criteria must be undertaken. Such includes

• Use of a non - discriminatory Job Evaluation system (code

discusses criteria and factors of such systems)

• Sectoral determination ( more specifically for minimum wage

jobs)

• EEA - 6 Occupational Levels

Compare and Evaluate Male and Female dominated Jobs

Employment Equity Reporting

Paterson Band Occupational Levels

F

Top management

E

Senior management

D

Professionally qualified and experienced specialists and mid-management

C

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

B

Semi-skilled and discretionary decision making

A

Unskilled and defined decision making

Draft Code of Good Practice on Equal Pay for Work

• f Equal Value

Factors Justifying Differentiation in Remuneration Once jobs have been graded, the various jobs are allocated remuneration packages in accordance with the remuneration philosophy of the employer and the value of the jobs. Employers are required to ensure that unfair discrimination does not occur at any of these stages. Act lists valid reasons for differentiations

Summary of Job Evaluation Process

Job Analysis Job Description Job Grading Job worth Hierarchy (Grade Map) The process of examining and documenting the content of a job, breaking it down into tasks, functions, minor functions, work methods, processes, operations and elements. Document the job analysis by writing job descriptions/profiles The ranking of levels of jobs or job worth hierarchy using a job grading system The final result of the job grading process. Illustrates where each job fits relative to

• ther jobs.

Scope of audit

Grade Map

Grade Company ABC 17 Managing Director Grade Manufacturing Finance, Cost Planning, Commercial, Purchasing Human Resources Assembly Production Control Logistics 16 15 Snr GM Manufacturing Snr GM Finance Snr GM HR 14 Snr Prod Manager IMV Snr Prod Manager Corrola 13 Logistics Manager 12 Production Mngr - Assembly GL Production Control GL- Cost Planning Commercial Manager Cost & Management Accountant 11 Group Leader ogistics Supplier Development HR Generalist Group Leader tores Expenditure Accountant IR Manager Senior Expeditor Revenue Accountant Training Manager IT Projects 10 Supplier Quality Assurance Occupational Health Nurse Purchasing / Buyer IT Administrator 9 Group Leader Expeditor Safety Officer

• Nys & Training
• Assembly

8 Jnr Group Leader Cost Analyst HR Officer VAVE Training Officer 7 Logistics Clerk APDP Clerk CEO - PA Payroll Administrator 6 Costing Clerk HR Administrator Purchasing Clerk Safety Administrator Local Creditors Wage Clerk

Job Evaluation Process

Job Analysis Job Description Job Grading Job worth Hierarchy (Grade Map) Company Salary Structure

Stage two

After the Job Worth Hierarchy is built, a Company Salary Structure is created and used as a framework for pay decisions

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Salary scales

1 2 3 4 5 6 7 8 Internal Equity (Stage 1) External Competitiveness (Stage 2)

A typical Grade overlap is 10% to 30%

Linking Grades to Market Salary Structure

200 000 400 000 600 000 800 000 1 000 000 1 200 000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Salary (Guaranteed Package) Rands per annum.

Paterson Grades

Comparison of ABC Individual Guaranteed Package Salaries (as at December 2013) against proposed Guaranteed Package Pay-Scales as at April 2014.

Minimum Midpoint Maximum Individual Salaries A1 A2 A3 B1 B2 B3 B4 B5 C1 C2 C3 C4 C5 D1 D2 D3 D4 D5

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