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

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Shavonne Robbins
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1 Click to edit Master title style Draft Code of Good Practice on Equal Pay for Work of Equal Value 28 October 2014 Presented by: Lionel van Schalkwijk PE Corporate Services SA (Pty) Ltd Tel:

2 Draft Code of Good Practice on Equal Pay for Work of Equal Value Objective Code seeks to promote remuneration equity in the workplace by providing practical guidance on how to apply the principle of equal remuneration for work of equal value. 2

3 Draft Code of Good Practice on Equal Pay for Work of Equal Value 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 of 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 other forms of variable compensation or pay 3

4 Draft Code of Good Practice on Equal Pay for Work of Equal Value 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 or 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? 4

5 Draft Code of Good Practice on Equal Pay for Work of 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.

6 Draft Code of Good Practice on Equal Pay for Work of 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 objective 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

7 Employment Equity Reporting Paterson Band Occupational Levels F E D C B A Top management Senior management Professionally qualified and experienced specialists and mid-management Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents Semi-skilled and discretionary decision making Unskilled and defined decision making

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

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

10 Grade Grade Map Company ABC 17 Managing Director Grade Manufacturing Finance, Cost Planning, Assembly Production Control Logistics Commercial, Purchasing Human Resources Snr GM Manufacturing Snr GM Finance Snr GM HR 14 Snr Prod Manager IMV Snr Prod Manager Corrola 13 Logistics Manager Production Mngr - Assembly GL Production Control GL- Cost Planning Commercial Manager Cost & Management Accountant Group Leader ogistics Supplier Development HR Generalist Group Leader tores Expenditure Accountant IR Manager Senior Expeditor Revenue Accountant Training Manager IT Projects Supplier Quality Assurance Occupational Health Nurse Purchasing / Buyer IT Administrator Group Leader Expeditor Safety Officer - Nys & Training - Assembly Jnr Group Leader Cost Analyst HR Officer VAVE Training Officer Logistics Clerk APDP Clerk CEO - PA Payroll Administrator 6 Costing Clerk Purchasing Clerk Local Creditors Wage Clerk HR Administrator Safety Administrator

11 Job Evaluation Process Job Analysis Job Description Stage two After the Job Worth Hierarchy is built, a Company Salary Structure is created and used as a framework for pay decisions Job Grading Job worth Hierarchy (Grade Map) Company Salary Structure

12 External Competitiveness (Stage 2) Salary Click to scales edit Master title style A typical Grade overlap is 10% to 30% Internal Equity (Stage 1)

13 Salary (Guaranteed Package) Rands per annum. Linking Grades to Market Salary Structure Comparison of ABC Individual Guaranteed Package Salaries (as at December 2013) against proposed Guaranteed Package Pay-Scales as at April A11 A2 2 A3 3 B1 4 B2 5 B3 6 B4 7 B5 8 C1 9 C C3 12 C4 C5 13 D1 14 D D3 17 D4 18 D5 19 Paterson Grades Minimum Midpoint Maximum Individual Salaries

14 Click to edit Master title style

JOB EVALUATION GRADING AND SALARY STRUCTURE 6/30/2017

JOB EVALUATION GRADING AND SALARY STRUCTURE 6/30/2017 1 Outline Background, Job evaluation grading structure, Job evaluation model salary structure, Way forward. 6/30/2017 2 Background In 2015, the SRC