USW Job Evaluation Settlement

PDAD&C #75 , 2010 – 2011
HR #30, 2010 – 2011

To:
 Principals, Deans, Academic Directors & Chairs
 Professional/Managerial Staff
From:
 Angela Hildyard
 Vice-President, Human Resources & Equity
Date:
 April 29, 2011
Re:
 USW Job Evaluation Settlement


As you are aware, the University and USW Local 1998 have now achieved final settlement on the implementation and maintenance of a new job evaluation system and classification process which provides for both Pay Equity, as required by the Pay Equity Act, and also for internal equity across all job classes. A copy of the Memorandum of Settlement is found at http://www.hrandequity.utoronto.ca/groups/union/usw.htm

The purpose of this communication is to provide you with more detailed information with respect to the settlement with USW and the implementation of the new job evaluation system. We were unable to do so earlier as it is our normal practice to refrain from commenting on the details of negotiated agreements prior to ratification. It is important that during the period between reaching a tentative agreement and the ratification vote the Union be able to communicate as they deem necessary in order to get the agreement ratified by the membership.

Background
Some of you may be asking why the University agreed to undertake a project of this magnitude. While we did have an existing job evaluation system that was compliant with the Pay Equity Act, it had not been amended since it was implemented in the 1980’s. When a new bargaining agent comes in, as USW did in 1998, they are entitled to challenge all aspects of how employees are classified and compensated. As a result, in 2000 the University and USW agreed to move forward with the negotiation of a new job evaluation system. We have been negotiating the details since this time. The current collective agreement requires that these negotiations be completed by December 31, 2010, which deadline was extended by mutual agreement.

The parties agreed to develop the “SES/U” system as the method for establishing and maintaining an open, consistent and fair job evaluation and classification process that would provide for both pay equity and internal equity. The SES/U system derives ratings for positions through a combination of established factors, weightings, and “Questionnaire Summary Documents” or “QSDs” which enable direct employee and manager input into the job evaluation process.

The scope of the job evaluation project that has been underway required the evaluation of all bargaining unit positions. To date the parties have reached agreement on approximately two-thirds of these positions, and have agreed on a framework to complete the rating of the remaining positions. The parties have also agreed on the creation of new job classes and the positions that comprise these job classes. The result is approximately 450 new job classes, organized into logical job families, which represents a significant reduction from the number of job classes in the current system.

Moving to the New Pay Structure
The parties established new pay bands and a new pay structure in accordance with the Pay Equity Act, using the current pay structure as a framework. The pay line was derived from the use of a methodology which compares male and female job classes in the bargaining unit, providing an opportunity to deal with both pay equity (ensuring female dominated job classes are paid appropriately in relation to male job class of similar value in accordance with the Pay Equity Act) and internal equity (ensuring compensation is equitable for all job classes) simultaneously.

Effective July 1, 2011 for those positions that have been rated, we have agreed to the following:

  • incumbents whose salaries are below the new salary range - immediate movement to the minimum of the range, with step progression on salary adjustment date
  • incumbents whose salaries are within the range – remain at current salary, with step progression on salary adjustment date
  • incumbents whose salaries are above the range – will receive across-the-board increases, but no step increases, for as long as they continue to hold their current position (also known as “green circling”)

The migration of affected employees to the new pay structure will be administered centrally, and more information in this regard will be provided closer to the effective date.

Retroactivity
Although the process started in 2000, we were successful in limiting retroactive adjustments to July 1, 2007. Retroactive pay adjustments are limited to those employees whose salaries fall below the minimum of their new salary range. All adjustments will be paid as lump sum OTO amounts. Retroactive adjustments for those positions that have been rated will be paid on September 30, 2011.

Remaining Positions
In order to rate the remaining positions in the bargaining unit, employees and managers will need to complete a QSD starting June 1, 2011; more details on this process will be forthcoming. Once these positions have been rated, any necessary retroactive payments will be spread over two fiscal years, payable in May 2012 and May 2013. We anticipate that employees in these positions will migrate to the new pay structure effective May 2012.

Cost
Retroactive Costs: Funds had already been set aside, in accordance with the terms of the most recent collective agreement, to cover a portion of the retroactive costs. The remaining portion, to be paid over 3 years, will be funded as a cost shared by divisions through university-wide costs and the Provost’s contingency funds.

Base salary increases: These will be absorbed by divisions. The impact of the base salary increases varies by division. We have already begun meeting with divisional representatives to discuss the specific impacts and will continue this process over the coming weeks.

Ongoing Maintenance
The parties have agreed to a process for ongoing Job Evaluation. The process is not in effect until June 1 and we will communicate more about this prior to that date.

Where can I get more information?
Representatives from Human Resources and Labour Relations will be conducting information sessions beginning in the next two weeks with all Divisions/Faculties to provide further details on the new process and answer any questions you may have.

The dissemination of information related to the specific ratings of positions within your units will be handled through your Divisional HR office.