Chapter 6: Fundamentally rethinking the regulatory oversight pillar

Official title: A Transformative Framework to Achieve and Sustain Employment Equity - Report of the Employment Equity Act Review Task Force: Chapter 6

Author: Professor Adelle Blackett, FRSC, Ad E, Task Force Chair

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Introduction: Regulatory oversight needs fundamental repair

Employment equity is perceived to be about reports and not about advancing and progress.

Teamsters, Presentation to the EEART, 8 April 2022

The success of a human rights enforcement system can ultimately be measured by one test - does the system lead to measurable and real reduction in the discrimination faced by citizens protected by the law.

Mary Cornish, Achieving Equality A Proposal For A New Canadian Human Rights Enforcement System, Submission to Canadian Human Rights Act Review Panel, 1999.

Workplaces should have significant latitude to promote equitable inclusion, reasonable latitude on how to implement employment equity, and no latitude to drag their feet on achieving and sustaining employment equity.

As we looked closely at the regulatory oversight and accountability measures in place for the Employment Equity Act framework, our task force came away with the concern that the existing legislation, like some other employment law frameworks, might, in the words of political scientist Leah Vosko, “inadvertently incentivize non-compliance.”Footnote 1

The current Employment Equity Act framework might be incentivizing foot dragging, not providing enough guidance to implement, and putting a brake on the creativity necessary to exceed unduly rigid indicators and achieve a barrier free workplace for all.

We have said it before: for employment equity to mean achieving substantive equality, the implementation through barrier removal, meaningful consultations and regulatory oversight must be proactive too. And the failure to implement and to engage in meaningful consultations must entail consequences.

Professor Vosko’s work on employment standards legislation has led her to question the reliance on a mix of “new governance” strategies that privilege persuasion and information sharing without enough attention placed on deterrence.Footnote 2 We took note as well of the many stakeholders who told us that we need to focus on ensuring that the Employment Equity Act framework is actually enforced. There was lost confidence in the ability of individual human rights complaints and individual grievances to resolve these systemic questions.

We reviewed decisions raising employment equity concerns rendered by the Federal Public Service Labour Relations and Employment Board in response to employee complaints of “abuse of authority” under Section 77(1)(a) of the Public Service Employment Act. These decisions confirm the challenge of fitting systemic complaints into individual cases. The review similarly suggests how important it is for adjudicators to have specialized expertise and training in equity. The chair of the Board, Edith Bramwell and general counsel Asha Kurian, also stressed the importance of a holistic approach to addressing employment equity.Footnote 3

We need hospitals, of course. But we heard an urgent plea for us to focus on proactive prevention and care. Regulatory oversight must be nimble, supportive and sustained.

We have a framework that seeks to stimulate change through implementation via self-evaluation and reporting, through meaningful consultations and regulatory oversight. It is well designed to do so, so long as each of the pillars is fortified.

But we have all the evidence we need to affirm that we cannot achieve employment equity if even one of the pillars is weak. And while we have provided recommendations to strengthen implementation and meaningful consultations, it is clear that the regulatory oversight pillar is broken, and in need of quite fundamental repair.

Without sufficiently robust regulatory oversight, workplaces lose all three key reasons why they might seek to comply with the Employment Equity Act, namely:

  • economic—it costs less to comply than to risk fines and penalties
  • social—they do not want to be unfavorably compared to others in their industry, and
  • normative—they believe it is the right thing to doFootnote 4

Our current approach to regulatory oversight misses all three reasons. The Employment Equity Act framework offers:

  • very little by way of economic incentive
  • limited visibility to employers who are doing well in the industry and little objective basis for comparison, and
  • insufficient guidance to employers who want to do the right thing by fostering equitable inclusion on how to do so

This chapter canvasses where we are on regulatory oversight, and offers recommendations on where we need to go.

Where we are:

The role of the Labour Program

The Minister of Labour, largely through the Labour Program’s Workplace Equity Division, is responsible for the administration of the Employment Equity Act. It is called upon it to:

  • develop and conduct information programs to foster public understanding the Employment Equity Act and foster public recognition of its purposeFootnote 5
  • undertake research related to the purpose of the Employment Equity ActFootnote 6
  • promote the purpose of the Employment Equity ActFootnote 7
  • publish and distribute information, guidelines and advice to private sector employers and employee representatives regarding the implementation of employment equityFootnote 8
  • develop and conduct programs to recognize private sector employers and employee representatives for outstanding achievement in implementing employment equityFootnote 9
  • issue penalties to private sector employers for non-compliance with the Employment Equity ActFootnote 10
  • submit an Annual Report to Parliament on the status of employment equity in the federally regulated private sectorFootnote 11
  • make available to employers any relevant labour market information respecting designated groups in the Canadian workforce in order to assist employers in fulfilling their obligations under the Employment Equity ActFootnote 12, and
  • administer the Federal Contractors Program (FCP)Footnote 13

The Labour Program also administers the WORBE program discussed in Chapter 5, alongside an Employment Equity Achievement Awards program.

Employment Equity Achievement Awards Program:

The Employment Equity Achievement Awards Program has honoured awardees from the Legislated Employment Equity Program or the Federal Contractors Program since 2016 for

  • Outstanding commitment to employment equity
  • Innovation
  • Sector distinction
  • Employment equity champion

The awards program was paused for two years during the COVID-19 pandemic. It is set to relaunch at a ceremony in 2023, and is to include a new Indigenous Reconciliation award.

The awards program is administered by the Labour Program.

Based on the announcements, quite a number of the awards may reflect commitment to diversity and inclusion, or the launching of initiatives or programs aimed at increasing representation.

Some others reflect innovative, promising practices, such as working through memoranda of agreement with Indigenous communities to advertise, assess and assist with the hiring of Indigenous candidates.

The publicly shared information on the awards program have tended not to provide specific detail on the results of the promising practices, or whether and how recipients have successfully implemented employment equity in keeping with the current requirements of the Employment Equity Act framework.

The Labour Program’s limited means:

The Labour Program’s responsibilities and powers are broad. The capacity and results have been less so.

Consider that only 4 employers have ever received a notice of assessment of a monetary penalty. The last penalty was issued in 1991, which is also when the largest penalty was issued - $3,000.00. Under the FCP, no contractor has been found to be in non-compliance since the 2013 redesign.Footnote 14

This is despite the fact that the Labour Program conducts compliance assessments annually for federally regulated private sector employers. For the FCP, the Labour Program conducts individual compliance assessments the year after the contract award date, then every three years afterward.

There are built-in limits in the Employment Equity Act framework, explored throughout this report, that affect what the Labour Program can do. The point of the Employment Equity Act framework should have been to create incentives for employers to comply wherever possible.

If we knew that employment equity was actually being achieved and sustained, the limited assessments of penalties would be something to celebrate. But that is far from the reality.

Consider that currently, when a compliance officer in the Labour Program finds that an employer is not meeting an undertaking – for example, the employer has failed to review and revise its employment equity plan as required by Section 13 of the Employment Equity Act, or has failed to consult with employee representatives as required by Section 15 – the compliance officer is required to notify the employer and “attempt to negotiate a written undertaking.”Footnote 15 That’s it.

Consider also that Workplace Equity Officers used to be available across Canada, working out of regional offices, and close to the workplace actors themselves. They were able to undertake on-site visits to FCP contractors. The positions were eliminated in 2013. Compliance assessments are now based on reporting rather than on-site visits. While there is a lot that can be done with virtual meetings and we were told that the Labour Program has gotten creative with them during the pandemic, there are limits.

Our task force recognized the depth of knowledge of our interlocutors on the policy side of the Workplace Equity Department, including the capacity developed to administer the tool developed by the Labour Program. The Workplace Equity Information Management System (WEIMS) program enables LEEP and FCP employers to prepare and submit their reports online. The chair and vice-chair were provided with a demonstration of WEIMS’ capabilities alongside an emerging platform to share results on the pay transparency requirements under the Employment Equity Act framework.

On pay transparency under the Employment Equity Act framework, we were told that there was little ongoing exchange between the Labour Program and the Pay Equity Commissioner, despite the closely related framework and objectives under the Pay Equity Act. There are silos enabled by law.

Regarding data management, we were informed that a separate module of WEIMS is made available to the Canadian Human Rights Commission to review individual employer reports, and the Labour Program and the Canadian Human Rights Commission report meeting to discuss current and emerging issues. Canadian Human Rights Commission staff told the task force that they have to request some information available to the Labour Program on the WEIMS data management system directly from employers.

Remarkably, too, both the Labour Program and the Canadian Human Rights Commission told us that the audits conducted by the Canadian Human Rights Commission are not shared with the Labour Program that subsequently advises employers.

We could of course simply recommend that each institution share more information and collaborate. The impediments to sharing seemed not to be strictly legally mandated. Under Section 34 (3) of the Employment Equity Act, the Canadian Human Rights Commission is permitted to communicate or disclose “on any terms and conditions that the Commission considers appropriate”, to a minister of the Crown in right of Canada or to any officer or employee of Her Majesty, “for any purpose relating to the administration or enforcement” of the Employment Equity Act

Regrettably, the current practice seems to reflect the institutional silos that have developed over time.

The division may have had merits in the past, but currently it is part of the problem.

So many years into a process that should be helping us to achieve employment equity, our task force came away concerned. The bifurcation of responsibilities seems to be a big part of the problem facing regulatory oversight of the Employment Equity Act framework.

Public Service Commission of Canada – an employer and an auditor

Employment equity implementation and regulatory oversight in the federal public service is cross-cutting.

In the core federal public administration, responsibility for carrying out the obligations under the Employment Equity Act is shared:

  • The Public Service Commission (PSC) assumes responsibility for appointments to the public service or from within the public service, including promotions, under the Public Service Employment Act (Sections 11 & 29). These responsibilities are delegated to deputy heads of departments.
  • The Treasury Board Secretariat’s Office of the Chief Human Resources Officer (TBS-OCHRO) assumes human resources responsibilities under the Financial Administration Act (Section 11.1), including classifications of positions and establishing policies and programs to implement employment equity in the public service. The president of the Treasury Board tables public sector reports to Parliament on an annual basis.

The Public Service Commission’s employment equity responsibilities also include conducting investigations and audits under the Public Service Employment Act (Sections 11 & 17). As discussed in Chapter 4, this includes the power to conduct audits to determine whether there are biases or barriers that disadvantage persons belonging to any equity-seeking group. When assuming this role, the Public Service Commission has all the powers of a commissioner under the Inquiries Act.

The takeaway is that the Treasury Board Secretariat and the Public Service Commission share responsibility for identifying and removing barriers to achieving and sustaining employment equity, and for supporting departments to implement positive measures to close representation gaps.

We stress two features:

  • First, the language of the Public Service Employment Act does not refer specifically to groups as designated by the Employment Equity Act. Any equity-seeking group is broader and suggests the kind of recognition of the importance of barrier removal that this report has emphasized.
  • Second, the Public Service Commission has an auditing responsibility for recruitment processes. But the relationship between its own role in hiring – essentially delegated to departments and agencies - and its function as an auditor requires serious attention.

Responsible for safeguarding a merit-based, representative and non-partisan federal public service for the benefit of all Canadians, the Public Service Commission reports independently to Parliament.

Constituencies that met with our task force expressed frustration, however, at not being able to obtain the kind of granular data on merit and representativeness in the federal public service that show what is really happening on hiring, promotion and retention in the federal public service.

Names matter. If the Public Service Commission is the joint employer with responsibility for appointments, should we really be calling their reviews of employment practices by the deputy heads of departments to whom they have delegated their authority audits?

We learned that this concern is not merely a matter of terminology.

We were informed in particular that the Office of the Auditor General of Canada’s anticipated audit of an inclusive workplace for racialized employees was not expected to cover recruitment in the public service in part because the Public Service Commission conducts its own audits. We understood that the Auditor General’s decision was in part to respect responsibilities that are legislatively granted to other federal institutions and to avoid duplication.Footnote 16

We accorded the utmost seriousness to the call by the Public Service Commission for accountability to be increased by focusing on outcomes rather than simply monitoring efforts, that is, for an oversight body to ensure that progress is actually made to close gaps.Footnote 17

The Canadian Human Rights Commission

In effect, a demonstrably effective process which is frustratingly limited in coverage has been replaced by a broader process which lacks features critical to effective implementation.

J. Helen Beck, Jeffrey G. Reitz and Nan Weiner, “Addressing Systemic Racial Discrimination in Employment: The Health Canada Case and Implications of Legislative Change” (2002) 23 Canadian Public Policy 373 at 387.

Following the National Capital Alliance on Race Relations case before the Canadian Human Rights Tribunal, the Canadian Human Rights Act was amended to prevent employment equity cases – that is, cases relying on statistics - from coming forward. Subsequently, the Canadian Human Rights Commission has been responsible for monitoring compliance, a responsibility entrusted to them as an independent agency. Stakeholders came to see the role initially assumed by the Labour Program in what was then HRDC as presenting a potential “conflict of interest” given its proximity to employers in other programs.Footnote 18 So responsibilities were divided up.

The Canadian Human Rights Commission monitors compliance by conducting compliance audits for both the federal public service and federally regulated private sector employers. It is also able to receive and examine complaints regarding non-compliance.Footnote 19

As discussed in detail below, the Canadian Human Rights Commission may also apply to the Chairperson of the Canadian Human Rights Tribunal to request that an Employment Equity Review Tribunal be appointed, with power to issue decisions enforceable as court orders.Footnote 20 This application is made when an employer requests a review of a decision issued by the Canadian Human Rights CommissionFootnote 21 or the Canadian Human Rights Commission requests the confirmation of its decision.Footnote 22 The Employment Equity Review Tribunal itself has barely ever been used.

The Canadian Human Rights Commission’s annual report is also submitted to Parliament, comprising information about the Canadian Human Rights Commission’s audits and enforcement activities.

The Canadian Human Rights Commission’s own implementation report

Given the CHRC’s role in auditing others, in both the public sector and the private sector, it was important to look at how it understood implementation within its own workplace.

The CHRC reported in November 2022 that it met its employment equity targets for all four equity groups, using the higher LMA rather than WFA applied in the federal public service as a benchmark. The CHRC added that as a small organization, “for some of the equity seeking groups, the departure of one or two employees can have a significant impact on representation”.Footnote 23 The report contains a workforce analysis in statistical terms, but an environmental scan revealed several areas of concern including access to career development opportunities, conflicting messages about parental leave, cumbersome and lengthy processes for accommodation requests that affect both workers with disabilities and religious minority workers seeking accommodation of their religious holidays, and the use of inappropriate language to discuss non-CHRC employees.

The language of systemic barriers was used sparingly, however, and obstacles to career development were not considered to be systemic employment equity barriers since the Employment Systems Review “did not identify differential treatment of employees because they belonged to an equity seeking group” but rather because there is an employee perception of arbitrariness. It was surprisingly unclear from the report whether belonging to an equity group was considered to be one of the factors. Moreover, without identifying a specific link to equity groups in the report, ready access to French language training was identified as a “common barrier to career advancement” with the problem apparently at the level of receiving the appropriate approvals to take the training due to high workload.Footnote 24

The CHRC recommended formalizing and structuring its approach to talent management, and better communication about staffing plans and decisions. It also recommended “right-size workload expectations”, the kind of measure that can support workers with family responsibilities and workers with disabilities who are disproportionately affected, but also support all employees’ mental health and work-life balance. The report underscored the importance of catalyzing support for achieving employment equity from the level of the Chief Commissioner.

The Canadian Human Rights Commission’s audits

The Employment Equity Unit, housed in the Proactive Compliance Branch of the Canadian Human Rights Commission, is small, and smaller than it was when it was first established. The dynamic, committed but clearly overworked team of professionals charged with auditing every Canadian workplace under federal Employment Equity Act jurisdiction, including the federal public service, could fit in one small conference room, with seats to spare.

The traditional approach is to conduct conventional audits of all employer implementation and consultation requirements under the Employment Equity Act. This entails enforcing the nine employer obligations under Section 22(1) of the Employment Equity Act, and summarized by the Commission in its auditing frameworkFootnote 25 as:

  1. Collection of workforce information
  2. Workforce analysis
  3. Review of employment systems, policies and practices
  4. Employment equity plan
  5. Implementation and monitoring of employment equity plan
  6. Periodic review and revision of employment equity plan
  7. Information about employment equity
  8. Consultation and collaboration
  9. Employment equity records

Under the Employment Equity Act, the CHRC conducts a comprehensive, conventional audit, then CHRC follows up with written directions to the employer to undertake necessary steps. There are statutory limits: as discussed in Chapter 4, the directions may not cause undue hardship; the direction must not require unqualified people to be hired or breach the merit principle in the federal public service. They may not require new jobs to be created. They must not impose a quota; rather, they must consider the appropriate factors for setting numerical targets.

An employer may request a review of a direction, or the CHRC may apply for a Tribunal order to confirm a direction. Both are understood that this is meant to be a last resort. The focus of the legislation is on persuasion.

Recently, in an attempt to be responsive and creative, despite limited resources, the Canadian Human Rights Commission has also been conducting horizontal audits. They include a Horizontal Audit on Indigenous employment in the banking and financial sector released in 2019, and a Horizontal Audit in the Communications Sector: Improving Representation for People with Disabilities, released in 2022.

The CHRC has largely lost what limited on-site capacity it initially had. The paper-intensive approach to audits – which in one recent case for the public service entailed an audit survey sent to the 47 public service departments and agencies with 500+ employees and out of which they selected 18 to submit to a full documentary assessment coupled with interviews with employees from different levels of the organization - may reflect the restrictions in the context of a pandemic where most employees were not working in the office, but one unavoidable issue for the CHRC remains the limits to what can be done with its current resources.

There is no use putting a gloss on this challenge: the CHRC’s Employment Equity Division, with 11 staff members, does not have anywhere near the capacity necessary to undertake their crucial oversight work.

Although it is responsible for undertaking conventional audits of employers, covering all 9 requirements found in the Employment Equity Act, it has only audited 423 employers between 1997 and 2021 for a total of 814 audits.Footnote 26

Not surprisingly, we learned that some employers tend to react to the audits, rather than undertaking proactive measures in advance.Footnote 27 Given the small number of audits conducted, there is little incentive to do otherwise.

The CHRC informs employers in its Framework for Compliance Audits that although the information gathered is treated as confidential under Section 34 of the Employment Equity Act, the CHRC is subject to disclosure requirements of the Access to Information Act, which take precedence.

Our task force was told by the outgoing Chief Commissioner that the CHRC shared a commitment to transparency and strengthening the Employment Equity Act framework. On direct request from the task force chair, the CHRC made a small selection of anonymized audits available for the purpose of this review. The CHRC shared conventional audits and background audits to a horizontal audit that had not yet been released on the representation of racialized people in the federal public service. Horizontal audit reports are already publicly available on the CHRC’s website.

The conventional audits reviewed are discussed below in some detail precisely because they have rarely been externally reviewed.

The conventional audits contained employment equity data profiles including analyses of the percentage of the equity group in the specific workplace as well as the attainment rates and a discussion of those results over time. Past audits were summarized and discussed in relation to the current audit results. They addressed employment equity groups as a whole.

Alongside the representation analysis was a separate section providing information about the employer, its employment equity program, previous employment equity audits and the audit’s findings.

It was important to see within those documents that the CHRC affirmed that employment equity is not just about the numbers. It stressed the steps that need to be taken beyond current levels of representation.

Unfortunately, some of the audits were not terribly detailed. They did not suggest that the audits permitted a “deep dive” into the employer’s organizational behaviour. They suggested that much of the auditing took the form of an exchange and analysis of documents submitted. Given the size of the audit team, this is hardly a surprise.

On implementation including barrier removal, in one case, the audit revealed that the governmental unit or agency had not completed an employment systems review or a valid employment equity plan based on recent workforce analysis and the results of an employment systems review (ESR). They indicated that they intended to hire a consultant to conduct an ESR. The CHRC noted that they were required to conduct the audit sooner than it was apparently planned to be conducted.

Although the language of diversity and inclusion was all over the reports, the CHRC’s audit showed that it was not letting generic EDI practices substitute for the specific requirements of the Employment Equity Act:

  • It is also important that the CHRC clarified that a Diversity and Inclusion Strategic Plan, which had some similarities to an Employment Equity Action Plan, was not based on the Employment Systems Review so was not an “evidence-based” action plan.
  • Similarly, some of the Diversity and Inclusion training could not be considered a “strategy” for external hiring of racialized persons into management and executive roles. Promised items - like a toolkit to support the hiring - were not submitted to the CHRC for review.

The examples of barriers identified by the CHRC varied. They included barriers in gaining access to telework. Another audit indicated that there was “systemic hostility toward racialized women who eat lunches from their cultural backgrounds at work” with co-worker complaints about smells and “an order from an executive against ‘smelly food’ in the workplace.”

The CHRC’s remedial action called upon the agency to develop formal strategies for hiring. The CHRC was clearly moving beyond the merely symbolic to identify whether strategies were actually in place to develop a specialized skillset among the staff of the department, train hiring managers to address attitudinal barriers, and address the untapped internal talent of overqualified and loyal staff whose belief in the mandate of the organization contributed to them staying in junior roles despite their educational and professional attainment.

In other audits, the CHRC wanted to see actual performance goals for hiring managers to close the employment equity gaps for racialized workers. Although the evaluations were somewhat terse and a bit formulaic, the message was clear: the performance indicators for hiring should be specific; moreover, even if a group happens to be appropriately represented, there is still a responsibility to monitor to maintain the workforce availability rate.

The CHRC looked closely at the organizational resources available to carry out the employer’s plan. Finally, the CHRC wanted to see an annual analysis of reasonable progress but could not, in the absence of that plan. Audits showed that the CHRC sought evidence-based employment equity plans.

In some audits, the CHRC might report that barriers must be addressed. They might direct an employer to build a “management action plan,” that is, a schedule of the items requiring remedial action with a deadline by which to complete them.

But the CHRC provided no guidance on how to do so in the audit report.

In another audit, and in the absence of an employment systems review report that should already have been available, the CHRC called for an employment systems review to be prepared by a particular date. But these kinds of audits just illustrate the problem: most of these legislated requirements should already have been completed and ready for the CHRC’s compliance audit.

It was frankly troubling to read this kind of advice, given to employers that have been in the program for decades. And the employer was in the federal public service, which should set an example. The audit sounded at best like the kind of advice that should have been coming from the body responsible for monitoring compliance to employers that had just enrolled in the program or had produced their first report.

The upshot: this public service employer was given a later date to complete what should already have been done by law. The CHRC provided little guidance on how.

There were no immediate consequences for not already having met the legal requirements.

It is some consolation that the audit process closes only once the CHRC has assessed the evidence to ensure that each employer has met the requirements of the Management Action Plan prepared by the CHRC. But the auditors are overworked and under-resourced.

Since the Labour Program does not receive the audits, there is no ability to follow up when the employer submits the next employment equity report.

A betting employer could wager that not much will happen.

Even the list of barriers identified in an audit of a high performing unit, which was praised for exceeding workforce availability for the groups under consideration, and for taking important outward-facing initiatives suggested that there would be problems in sustaining employment equity. The report found the following barriers:

  • Affinity bias, or hiring, promoting or granting “acting” assignments to people who look like or have similar backgrounds to them
  • Lack of transparency in staffing processes
  • Unconscious bias or stereotypes, and
  • Lack of intercultural competence

The audits listed these problems, but without much granularity. Without follow up support, it is reasonable to worry that little will change.

On meaningful consultations, the Employment Equity Act requirements did not figure prominently in the conventional audit reports reviewed. Consultations were assessed as one of the sub-lines under the barrier-removal line of inquiry. In the background audits conducted for the announced horizontal audit for racialized employees in the federal public service, departments were assessed on whether they consulted with racialized employees to identify possible barriers in recruitment training, coaching, evaluation, promotion, discipline and termination; in respect of workflow and procedures; in respect of workplace climate and acceptance, and in respect of the availability of accommodation.

In one case, the documentation provided to the CHRC by an employer – largely slides of presentations – were considered not to constitute proof of consultations with racialized employees on barriers. Positive practices were acknowledged, but were not considered to replace the need for consultations with racialized employees for the purposes of an employment systems review.

Employers might submit a schedule of meetings with bargaining agents in which EDI was on the agenda. But reference to bargaining agents was almost entirely absent from the audits provided for the task force’s review.

The CHRC audits call for consultation, and clearly have a sense of what is inadequate, but seems not to offer guidance on how to structure consultations in order to be compliant with the Employment Equity Act.

Horizontal and Blitz Audits are an example of the room available for innovation on regulatory oversight even in the midst of significant constraints:

  • The CHRC has shown creativity given its extremely limited resources, by establishing a horizontal auditing practice that allows it to identify and take a deeper dive into systemic issues faced by a particular designated group and publish a sector-wide report. They have the potential advantage of providing insight into specific issues in specific sectors.
  • The CHRC has also developed blitz audits to reach more employers, by focusing on 2 of the entire 9 obligations listed above that the CHRC is required to audit under the Employment Equity Act – this approach is used with smaller employers, that is, those with fewer than 300 employees.

But frustrations have been expressed about these auditing practices, given the generality of the reporting in the horizontal audits currently available to the public and the small number of workplaces ultimately audited. According to the Public Service Alliance of Canada, for example, horizontal audits run the risk of lowering the standard necessary to ensure that employment equity is meaningfully implemented.Footnote 28

The CHRC’s 2019 Horizontal Audit on Indigenous Employment in the Banking and Financial Sector entailed 36 completed surveys and 10 second level audits. In contrast, in over 20 years since 1997, the CHRC reported that it had completed close to 80 audits in the sector of 240,000 employees, or fewer than 4 audits in the entire sector per year.

The CHRC’s 2022 Horizontal Audit in the Communications Sector: Improving Representation for People with Disabilities entailed 58 employers – in an important development, identified in an annex - who completed the survey, and 17 who were subjected to a full audit. Much of it took place during the COVID-19 pandemic so the CHRC graciously acknowledged the participation despite the challenges. It reported however that only 41.4% of those surveyed had taken any measures to eliminate employment barriers. Only 2 of 17 had established performance indicators for hiring managers. They noted that while the representation of people with disabilities in the communications sector had increased — from 1.7% in 2011 to 3.7% in 2019 — it is still well below the availability rate of 9.1%. The CHRC’s own frustration seemed apparent: it reported that “even after 25 years of the Act being in force, the Commission still had to require all 17 of the employers that were the subject of a full audit to sign a management action plan.”Footnote 29

Both horizontal audits seemed to confirm the extent of the underrepresentation, and the lack of comprehensive communication on how to identify employment barriers with the specificity needed to address them. The CHRC expressed the hope that the audit findings would assist the concerned sectors. Yet the separation between the Labour Program and the CHRC as well as the chronic underfunding do not facilitate the kind of follow up that would be needed to foster effective change.

Commendable creativity aside, the conclusion is unavoidable: Employment equity is the federal government’s commitment to substantive equality at work. It requires and deserves more than 11 overworked auditors and poorly coordinated, bifurcated regulatory oversight. It is time for change.

It is important for legislative frameworks to assume good faith. The federal government is accountable for ensuring that there is proper public oversight. But surely, we can accept that non-compliance can happen for reasons other than a lack of knowledge. If we persist in assuming that all we need is more training, the legislative framework that seeks to support one of Canada’s fundamental values, substantive equality, risks being undermined.

The one-stop shop: Fundamentally rethinking oversight

It is time for change.

One suggestion we received was that employers should be able to count on a “guichet unique” – a one-stop shop – through which to engage with questions affecting workplace equity. The one-stopshop should include both the specialists who can accompany employers, as well as the measures and programs of governmental financial aid necessary to make achieving substantive equality in the workplace a reality.

The suggestion corresponds with some of the most important contemporary thinking on how to deliver services in an effective and efficient manner. It is the approach we recommend.

Regulatory oversight to achieve and sustain employment equity

There is nothing inevitable about the employment equity enforcement gap.Footnote 30 Research confirms that the success of Canada’s employment equity framework depends in significant measure on “increased and vigorous enforcement”.Footnote 31

We are nowhere near there.

The time has come to adopt a unified model, which would ensure that one independent entity, reporting directly to Parliament, has comprehensive regulatory oversight for the Employment Equity Act framework.

This would be consistent with the contemporary equity frameworks put in place by the federal government under the Pay Equity Act and the Accessible Canada Act.

Creating the position of an Employment Equity Commissioner was recommended by a wide range of stakeholders, including the Canadian Human Rights Commission.

There are many strengths to the Commissioner model, which requires individual integrity and credibility alongside a depth of expertise in alternative dispute resolution methods to provide guidance, support, and identify sustainable ways to ensure that the frameworks, and their purposes, are achieved. However, commissioners cannot achieve equity or accessibility alone. They require significant resources including personnel to make sure the breadth of their mandate is respected. To succeed, they must be supported by a robust office helping to carry out and sustain their mandate.

Cultivating independent guidance and regulatory oversight

The Employment Equity Commissioner will be key to ensuring that employers and joint equity committees receive the guidance they need to achieve substantive equality in the workplace.

We heard from employers and service providers who are putting in place innovative employment equity programs, often working with great energy and intentionality to arrive at their representation goals. When they do so, they should be able to count on supportive, sustainable guidance. For example, one service provider adopted a strategic hiring approach and indicated they did so on the recommendation of the CHRC. However, they received no written advice. They anticipated some media attention but were surprised not to have the CHRC take a more explicit position to explain the practice to the public at large.

There should be public audits of EE progress, comparable across departments so that departments are held accountable for progress in an explicit way. It is not easy to discern how departments are doing on EE, other than to work through reams and reams of TBS data. Total transparency requires resources – to ensure that departments and central agencies can report explicitly, rather than making it difficult to understand the data. It has been great to have access to the data, but analysis is needed so that citizens, employees, bargaining agents and others can easily track progress.

Natural Resources Canada, Written Submission to the EEART

It is also clear that employers that adopt special measures under the Employment Equity Act to achieve greater representation within their workplace, or special programs to improve representation of other equity groups under the Canadian Human Rights Act need to be prepared to defend their programs. For example, we heard from a major Crown corporation that explained their decision to adopt a closed pool for a strategic hire and their resolve to do so transparently and to face public opinion on the matter.

Employers implementing special programs should be able to count on clear, written guidance from the Equity Commissioner.

Recommendation 6.1: An Employment Equity Commissioner should be established.

A model for guidance – the Pay Equity Commissioner:

The model of the Pay Equity Commissioner offers some important insights for a revised Employment Equity Act framework. The Pay Equity Commissioner is a full-time member of the CHRC, established under the CHRA. The Commissioner’s mandate as set out in Section 104(1) of the Pay Equity Act, is to

  • ensure the administration and enforcement of the Pay Equity Act
  • assist persons in understanding their rights and obligations under the Pay Equity Act, and
  • facilitate the resolution of disputes relating to pay equity

The Pay Equity Commissioner’s list of duties to carry out the mandate is significant, and includes monitoring implementation of the Pay Equity Act and offering assistance to employers, employees and bargaining agents, notably in relation to complaints, objections and disputes. The Commissioner decides whether a matter falls within their jurisdiction. The education and information dimension of the duties figures prominently, alongside the duty to develop tools to promote compliance with the Pay Equity Act and publish research (Section 104(2) (c) & (e)), including an opportunity or obligation as the case may be to provide advice to the Minister or to the House of Commons or Senate under Sections 114 & 115.

The Pay Equity Commissioner is also responsible for conducting compliance audits, with a full complement of auditing powers. The Commissioner may require an employer to conduct an internal audit and report the results. The Commissioner may also conduct investigations. On reasonable grounds to believe that there is a contravention of the Pay Equity Act, the Commissioner has the power to order the employer, employee or bargaining agent to terminate the contravention. Finally, the Pay Equity Act contemplates administrative monetary penalties in the event of a violation, with a view to promoting compliance rather than punishing (Section 126). Administrative monetary penalties (AMPs) are financial penalties or fines, which can be imposed when the regulatory scheme is violated, without having to go to court. AMPs seek to provide fair and efficient approaches to ensure compliance.Footnote 32 Violations – classified as minor, serious or very serious – are subject to a range of penalties with maxima of $30,000 for employers between 10 -99 employees and $50,000 for over 100 employees (Section 127). While specific violations are set by regulations, the legislation is clear: due diligence or reasonable belief in the existence of facts that if true would exonerate the employer are not available defenses (Section 133). Continuing violations constitute separate violations for each day they were committed or continued (Section 134).

The Commissioner may receive complaints from employers, employees or bargaining agents for a specific but fairly comprehensive set of matters. But the emphasis remains on finding an amicable solution and there is significant legislative scope to shape the litigation. The Pay Equity Commissioner is required to try to settle the matters, first (Section 154(1)) and may dismiss them if they are trivial, frivolous, vexatious or in bad faith; if they are beyond the Pay Equity Commissioner’s jurisprudence; or if the subject matter has been adequately dealt with another procedure.

The Pay Equity Commissioner has the power to review the notice of violation (Section 139), and the notice of decision contemplated in Section 161(1). The message is clear: the Pay Equity Act is meant to be complied with, and enforced. The process remains firmly within the hands of one office for a considerable time, although the Pay Equity Commissioner retains at any stage after a notice of dispute has been received, the right to refer the matter to the chairperson of the Tribunal. The Tribunal may also conduct a review. This is all in the shadow of the privative clause in Section 171 – “Every decision made under Section 170 is final and is not to be questioned or reviewed in any court.”

The Pay Equity Act already anticipates in Section 104(2)(f) that the Commissioner will “maintain close liaison with similar bodies or authorities in the provinces in order to coordinate efforts when appropriate”. With a new Employment Equity Commissioner, both jurisdictions should be encouraged to coordinate efforts as appropriate. This might be implicit if the Employment Equity Commissioner, like the Accessibility Commissioner, is also housed within the CHRC. However, as discussed below, it might well be time to offer a different institutional vision for the enforcement of workplace equity.

The list of recommendations below draws in part on the Pay Equity Commissioner model. The recommendations are not meant to offer a comprehensive list of the Employment Equity Commissioner’s powers or responsibilities.

A catalyst for change: Learning from the federal research funding agencies:

We heard repeatedly that an agency able to catalyze change is crucial. We learned from the model of implementation provided through the Canada Research Chairs program. While employers (the universities) might have initially acted because they faced requirements that were imposed by a funding agency due to a court settlement, many have now integrated proactive policies and approaches into their regular practices and explain their broader actions, beyond the Canada Research Chairs program, more generally as part of their adherence to EDI principles.Footnote 33 There was a fruitful balance struck: the funding agencies could at once offer incentive in the form of prestigious, well-funded research chairs, while requiring responsiveness to equity to meet established goals, and offering hands-on accompaniment to build employment systems review processes. The consequences of not making reasonable progress were clear: loss of future funding. Not only have goals increasingly been met. The effective, hands on, proactive regulatory oversight through the federal tri-agency funding councils and led by the Social Sciences and Humanities Research Council, has made a significant difference.

We urge that the reasons for this progress not be overlooked in any proposed redesign of the federal research funding landscape.

We can learn from this process to support employment equity regulatory oversight. Compliance under the Employment Equity Act seeks to be reflexive and responsive. It needs regulatory oversight to be independent, supportive and strong.

Recommendation 6.2: The Employment Equity Commissioner should be independent and should report directly to Parliament.

Recommendation 6.3: The Employment Equity Commissioner should have legislative responsibility and powers that include the powers in Section 42 of the Employment Equity Act.

Recommendation 6.4: The Employment Equity Commissioner should have the legislative authority to collect information on the employment practices and policies of all covered employers in the federal public service and private sector, as well as under the Federal Contractors Program, for the purpose of ensuring that employment equity is implemented in their workplaces.

Recommendation 6.5: The Employment Equity Commissioner, like other federal commissioners including the Privacy Commissioner of Canada, the Commissioner of Official Languages, the Information Commissioner of Canada, the Public Sector Integrity Commissioner of Canada and the Commissioner of Lobbying, should be considered a contracting authority exempted from Section 4 of the Government Contracts Regulations.

Recommendation 6.6: The Employment Equity Commissioner should be responsible for regulatory oversight including workplace auditing.

Cultivating independent review – Advisory and review panel

It is only by regularly reviewing the [Employment Equity] Act that we can better identify and evaluate areas where accountability, compliance and enforcement improvements are needed. The current twenty-year gap in reviewing the Act is unacceptable, and has only deepened and exacerbated labour market inequities faced by marginalized workers. The government must regularly review the Act every five years as is currently prescribed.

Unifor, Strengthening the Federal Employment Equity Act: Unifor’s Submission to the Federal Employment Equity Task Force, April 2022 at 12.

It is well known that the 5-year review cycle Parliament foresaw in the Employment Equity Act has not been a reality. We recommend that an independent advisory panel be created, and that it hold responsibility for undertaking reviews no less frequently than once every 10 years.

We recommend that a 10-person advisory and review panel be established to inform the work of the Employment Equity Commissioner. The panel should comprise experts in employment equity and related human rights and labour and employment relations issues. Members should broadly reflect a composite of Canadian society as a whole, and ensure intersectional representation of each of the employment equity groups. It should be convened at least twice per year. It should have the responsibility to conduct the reviews that are to be submitted to Parliament by the Employment Equity Commissioner and rendered public. The advisory and review panel’s budget should include the resources to undertake the reviews no less than once every 10 years.

Recommendation 6.7: An Employment Equity Advisory and Review Panel should be established under the Employment Equity Act to inform the work of the Employment Equity Commissioner.

Recommendation 6.8: The Employment Equity Advisory and Review Panel should have the responsibility to conduct reviews no less frequently than once every 10 years, to be submitted to Parliament by the Employment Equity Commissioner and rendered public.

Ensuring institutional autonomy

Employment equity can readily be sidelined, not only through ideological attacks, but institutionally through severe funding challenges.Footnote 34 Human rights commissions across Canada have not been immune to significant budget cuts. Our task force has expressed our significant concern about the small staff size of those responsible for auditing compliance with the Employment Equity Act in both the public service and the private sector.

Employment equity programs are constitutionally protected under Sections 15(1) and 15(2) of the Charter, understood together. Attention must be paid to institutional autonomy and the ability to meet the magnitude of the task available.

Law does indeed convey commitment. And a lack of funding undermines law’s commitments.

Funding levels ultimately tell us what commitments we mean to keep. Our task force unfortunately heard a fair bit of cynicism on this point.

More troubling still is the deep-set presumption that equity work will be close to voluntary work, done out of duty and love by the very people who have faced structural inequity throughout their working lives. That assumption is replete with stereotypes on the basis of the very grounds that employment equity seeks to redress. Those stereotypes fuel employment barriers and pay inequities. The assumption perpetuates the undervaluing of the work to be done and can lead to stress and burnout for the people doing the equity work. Government should be setting a better example.

It is time to break out of the idea that equity work should be done on a nickel and a dime. If we are committed to championing employment equity in this global moment of rising intolerance, if we understand how critical substantive equality is to our workplaces, our economy as a whole, and our identity as Canadians, we must show it.

Employment equity requires real change; real support to implementation in workplaces; real auditing and oversight. If any one of the pillars is weak, it will remain highly unstable, and fail to achieve its results. If fortified, it can support societal inclusion and growth.

Recommendation 6.9: The staffing and funding envelope for the Employment Equity Commissioner should be commensurate with the magnitude of the responsibility, including the auditing responsibilities, and reviewed periodically to provide the regulatory oversight necessary to achieve and sustain employment equity across federally regulated employers.

Recommendation 6.10: The Employment Equity Commissioner should be legislatively guaranteed a separate budgetary envelope sufficient to ensure that the purposes of the Employment Equity Act can be fulfilled through appropriate staffing and mobility, and guided by the funding available to other independent commissioners that report directly to Parliament, including the Auditor-General of Canada. In particular,

  • the auditing responsibility of the Employment Equity Commissioner should be funded at a level commensurate with the volume of covered employers in the federally regulated sector for which it assumes responsibility, and
  • the responsibility for statistical analysis should be increased to meet the needs of an expanded Employment Equity Act and to ensure that the Office of the Employment Equity Commissioner can participate meaningfully in the Employment Equity Data Steering Committee.

Recommendation 6.11: The Employment Equity Act should provide that the Employment Equity Commissioner enjoys sufficient remedial and enforcement powers to ensure that the purposes of the legislation can be fulfilled.

Recommendation 6.12: The Public Service Employment Act and the Canada Labour Code should be amended to require them to notify the Employment Equity Commissioner when a matter relates to the Employment Equity Act and provide the power to refer a matter to the Employment Equity Commissioner.

Recommendation 6.13: Notice should be given to the Employment Equity Commissioner when a policy grievance has been referred to adjudication and a party to the grievance raises an issue involving the interpretation or application of the Employment Equity Act, in accordance with the regulations. The Employment Equity Commissioner should have standing in order to make submissions on the issues in the policy grievance.

Recommendation 6.14: The Employment Equity Commissioner should enjoy immunity and be precluded from giving evidence in civil suits in a manner analogous with Sections 178 & 179 of the Pay Equity Act.

Institutional architecture

Establishing supportive and sustainable regulatory oversight

The Committee emphasizes the importance of ensuring coordination and complementarity between the interlocking measures and strategies adopted, and between the various competent bodies with a view to ensuring coherence and enhancing impact, while avoiding duplication of efforts and promoting the optimal use of resources.

ILO Committee of Experts on the Application of Conventions and Recommendations, General Observation on Discrimination based on Race, Colour and National Extraction, 2019.

We want to ensure that the Employment Equity Commissioner is able to assure the level of regulatory oversight necessary to meet the purpose of the Employment Equity Act. There are three options:

  • Option 1. House an Employment Equity Commissioner within the CHRC, through a buttressed proactive compliance branch
  • Option 2. Create a stand-alone Office of the Employment Equity Commissioner
  • Option 3. Build an Office of Equity Commissioners

Option 1: House an Employment Equity Commissioner within the CHRC, through a buttressed proactive compliance branch

Currently the Canadian Human Rights Commission houses the Employment Equity Division, the Accessibility Commissioner’s Unit and the Pay Equity Commissioner’s Unit within the Proactive Compliance Branch. The total staff of that branch is 65 persons, including the director general’s office. The Pay Equity Commissioner and the Accessibility Commissioner have a staff comprising primarily full time but also a few part time workers totalling 25 and 28 persons respectively. The Employment Equity Division has a staff of 11 persons.

Our task force heard concerns in particular about the capacity given to the CHRC to assume the responsibility for yet another commissioner. Some stakeholders categorically requested that the oversight bodies be separate from the CHRC and Tribunal systems, and representative of equity groups. Some cited a lack of resources to address the magnitude of the challenge. Others pointed to a lengthy history of inaction or inadequate action on systemic barriers, particularly as they relate to systemic racism.

The conclusions of the 2020 Hart Report are clear: while the CHRC has made a “laudable commitment” to strengthen how it handles race-based complaints, and taken “significant preliminary steps”, the path ahead of it is long and challenging.

In the thorough review of practices and procedures, former Ontario Human Rights Tribunal Vice-Chair Mark Hart identified a range of challenges. One was the discretion provided under Section 41(1)(a) or (b) of the Canadian Human Rights Act to dismiss a complaint where it appears that the alleged victim ought to exhaust grievances or another procedure under another Act of Parliament may be more appropriate. He called for these provisions not to be used automatically or perfunctorily and to be alive to the prospect that racialized complainants may face barriers to having their grievances processed appropriately.Footnote 35 Another centred on reducing the risk of anti-claimant bias, which he characterized in light of the #MeToo movement to affirm that “there is a difference between moving from a place of ‘I don’t believe you until you can prove it’, to starting from a place of hearing and accepting the claimant’s stated experience with an approach of openness and curiosity, without abdicating the need to ultimately assess the evidentiary support for the allegation required by the legal process”.Footnote 36 Yet another was the absence of support to most racialized claimants to properly prepare their complaints. He cited promising practices to support complainants in place in other Canadian jurisdictions, such as the Nova Scotia Human Rights Commission, but that require resources.Footnote 37 The extent to which the CHRC, for limited resource reasons, may elect only to represent a complainant in a race-based complaint through “partial participation” was also a source of concern given the negative impact on cases that are already “notoriously difficult to prove at a hearing”.Footnote 38 And he was consistently mindful of the limited resources available to the CHRC and quite explicitly sought to tailor his recommendations in light of the limits.

The overall thrust of the Hart Report is that for the CHRC to be successful, it requires not only sustained commitment, but significant resources.Footnote 39

The CHRC has embarked upon a modernization process, which it describes as a work-in-progress.Footnote 40

On 6 March 2023, the Public Service Staff Relations Board found that the CHRC had breached the “no discrimination” clause of its collective agreement. This has prompted inquiries into the CHRC and to state the least, has not helped instill confidence in the CHRC.

The widely acknowledged limited resources of the CHRC are a source of considerable concern. Does it make sense to continue to add critical equity responsibilities to the CHRC’s mandate without a clear commitment to securing for it a budgetary envelope that would enable these mandates to be conducted in the fulsome, comprehensive manner that a federal all-of-government commitment to employment equity would require?

There are structural integration questions that also need to be thought out. Consider, for example, that while the Pay Equity Commissioner is established under the Canadian Human Rights Commission and reports to the Minister (of Labour), the Pay Equity Commissioner’s staff reports ultimately to the Chief Commissioner. The integration of thematic commissioners within the Canadian Human Rights Commission requires great care from a structural perspective, and significant resources.

The model below offers a map of the Accessibility Commissioner’s partial integration into the Canadian Human Rights Commission structure:

The Accessible Canada Act and the Accessibility Commissioner
Figure 6.1: The Accessible Canada Act and the Accessibility Commissioner
Figure 6.1: The Accessible Canada Act and the Accessibility Commissioner: description follows
Text description of figure 6.1

The Accessible Canada Act (ACA) establishes:

  • The Canadian Accessibility Standards Development Organization: responsible for developing accessibility standards in collaboration with the disability community and industry.
    • The Standards Organization is an agent of her Majesty in Right of Canada. The Minister may issue directions to the Standards Organization to carry out its mandate.*
  • Chief Accessibility Officer: advises the Minister of Accessibility and monitors accessibility issues.***** Appointed by Governor in Council.******

Under the ACA and the Canadian Human Rights Commission is:

  • Accessibility Commissioner: (Full-time member of the Canadian Human Rights Commission) spearheads compliance and enforcement activities under ACA.******* Staff of 27.

The Governor in Council appoints Board of Directors (max 11 persons, including Chair and Vice-Chair),** and Chief Executive Officer.*** Officers and employees conduct the work of the Standards Organization.****

Alongside the Commissioner, the Canadian Transportation Agency and the Canadian Radio-television and Telecommunications Commission are responsible for implementing accessibility rules for the telecommunications and broadcasting industries.********

  • * Accessible Canada Act, SC 2019, c. 10 ss. 17(1) and (2), 21(1) [ACA]; Government of Canada, “News Release - Historic appointment of Canada’s first Accessibility Commissioner” (April 25, 2022), online: <https://www.canada.ca/en/employment-social-development/news/2022/04/historic-appointment-of-canadas-first-accessibility-commissioner.html> .
  • ** Accessible Canada Act, s. 22, 23.
  • *** Accessible Canada Act, s. 30.
  • **** Accessible Canada Act, s. 33.
  • ***** Government of Canada, “News Release: Historic appointment of Canada’s first Accessibility Commissioner” (25 April 2022).
  • ****** Accessible Canada Act, s. 111.
  • ******* Appointed under Canadian Human Rights Act s. 26(1). Also responsible for monitoring the Government of Canada’s compliance with the UN Convention on the Rights of Persons with Disabilities. Canadian Human Rights Commission, “The Accessible Canada Act” online.
  • After consulting with the Chief Commissioner of the Canadian Human Rights Commission, the Accessibility Commissioner may delegate their powers, duties or functions to another member of the Canadian Human Rights Commission (other than the Chief Commissioner) or to a member or staff of that Commission. ACA s. 40(2), 40(3).
  • ******** Accessible Canada Act ss. 42(1), 60(1); Canada Radio-television and Telecommunications Commission, The Accessible Canada Act and the CRTC Accessibility Reporting Regulations (Sept 20, 2022), online: < https://crtc.gc.ca/eng/industr/acces/index.htm>; Canadian Transportation Agency, “Summary of the Accessible Canada Act and Reporting Regulations: A Guide on Accessibility Plans” (Feb 18, 2022), online: <https://www.otc-cta.gc.ca/eng/summary-accessible-transportation-planning-and-reporting-regulations-accessibility-plans>; Laverne A Jacobs et al, The Annotated Accessible Canada Act, University of Windsor, Faculty of Law, 2021 CanLIIDocs 987, https://canlii.ca/t/t58r

The integration of thematic commissioners within the Canadian Human Rights Commission may respect the preference for broad human rights mandates to remain within national human rights institutions within the Principles Relating to the Status of National Human Rights Institutions known as the Paris Principles. However, the remarkable and chronic underfunding, the serious concerns raised by some of the equity groups and the lack of sustained attention to functional fit call for a response of a different magnitude.

During its 2019 visit to Canada, the Special Rapporteur on the Rights of Persons with Disabilities commended developments under the Accessible Canada Act ensuring independent monitoring through the Canadian Human Rights Commission, while underlining the importance of ensuring that the Commission receive “an unequivocal national monitoring mandate and appropriate financial and human resources to implement this function”.Footnote 41

If this option is adopted, the funding envelope and the institutional configuration will need to be significantly rethought.

This is our second-best option of the three.

Option 2: Create a stand-alone Office of the Employment Equity Commissioner

The 2004 Bilson report recommended the creation of an entire, stand-alone Pay Equity Commission, with a specific tribunal structure devoted to pay equity appeals. Our task force has received similar appeals, for an independent enforcement body mandated to audit, to investigate and to ensure the removal of barriers, with the power to hear, address and adjudicate complaints. They have tended to be responses to the concerns about the Canadian Human Rights Commission identified above. They reflect the thrust of this report: ensuring that employment equity constitutes a one-stop-shop for employers to obtain the insight and guidance they need to ensure that employment equity is effectively implemented.

In considering this option, we drew inspiration from the many independent offices that currently exist. Below we map several of them, with a view to providing insight into staffing, budgeting, and structural reporting. There is much to learn from them.

Each represents responsibilities understood as central to our self-understanding in Canada. From the Office of the Attorney General to the Office of Official Languages and the Office of the Privacy Commissioner, the significance of the role is reflected in the significance of the autonomy provided. Employment equity warrants comparable treatment.

There are challenges, however. Primary among them is that rather than harmonizing employment equity with other existing legislative frameworks on equity, a separate office runs the risk of building yet another silo. It may also leave employment equity on its own and too vulnerable in the future.

For these reasons and as explained below, we support this option but would prefer option 3.

Option 3: Establish an Office of Equity Commissioners

It is because of the importance of harmonization that this report introduces the prospect of building an Office of Equity Commissioners. The Office would include the Pay Equity Commissioner and the Accessibility Commissioner, both currently housed in the Canadian Human Rights Commission and part of the Proactive Compliance Branch.

There are important examples of institutional experimentation with the appropriate mix of human rights and labour rights bodies across Canada.Footnote 42 Experimentation with human rights enforcement structures continues across Canada. Both the work to integrate equity tribunals in Ontario and the integration in Québec of the pay equity commission with the labour standards and occupational safety and health tribunal suggest the kind of creativity that seems important federally to achieve employment equity and support harmonization of responsibilities on Canadian workplaces.

Our consultations point toward the value in establishing an Office of Equity Commissioners, through which the Employment Equity Commissioner, the Pay Equity Commissioner and the Accessibility Commissioner could be jointly housed.

It would be our expectation that like the Office of the Official Languages Commissioner and the Office of the Privacy Commissioner, a recommended Office of Equity Commissioners should report directly to Parliament.

The Office of the Equity Commissioner’s relationship to the Canadian Human Rights Commission should be a horizontal dotted line, with initiatives to ensure that there is collaboration with the Chief Human Rights Commissioner including in its role as Canada’s National Human Rights Institution.

The Office of Equity Commissioners should receive a staffing and budgetary envelope that is on par with the seriousness of the responsibility that they face. A separate budgetary envelope for the Office of Equity Commissioners is key; the task force has understood the challenge of holding resources constant for employment equity when there are competing demands and employment equity is not clearly prioritized.

The Office of Equity Commissioners should have a dedicated team of auditors, and significantly increased in number, on par with the extensive responsibility, who are conversant with all three covered mandates, representative of employment equity groups and highly qualified in understanding and addressing substantive equality.

It is clear that the Accessibility Commissioner’s mandate exceeds the workplace although the workplace is a critical dimension that invariably intersects with other areas. We consider this to be a positive feature of the proposed Office of Equity Commissioners, as it avoids further silos when barrier removal serves multiple accessibility purposes in society.

The relationship of the Office of Equity Commissioners to the Canadian Human Rights Tribunal, through which the Employment Equity Review Tribunal is linked, should be similar to the relationship between the Canadian Human Rights Commission and the Canadian Human Rights Tribunal.

The establishment of an Office of Equity Commissioners will not be a panacea.

The Office of Equity Commissioners must be fully supported, and there must be support around the Commissioners to ensure sustainability.

Models to guide the choice of options

There are other Commissioner models available within the federal government and beyond. The task force canvassed a number of Commissioners’ offices within the federal system, to gain a closer understanding of the different structures within and beyond the Canadian Human Rights Commission that might inform the decision about the appropriate options for an Employment Equity Commissioner. The Office of the Auditor General of Canada, the Official Languages Commissioner and the Privacy Commissioner offer particular insights, including on funding levels.

Office of the Auditor General of Canada

The Office of the Auditor General of Canada (OAG) is independent of government, although it is subject to the Employment Equity Act and acknowledges the cross-cutting, underlying value to its work and for its own workplace. The Office of the Auditor General also understands its vision to be a transformative one – “to bring together people, expertise and technology to transform Canada’s future, one audit at a time.Footnote 43 It is noteworthy that the OAG’s publicly available, online employment equity report was one of the rare public reports to include the employment equity plan with each commitment, measure, targets and results.

The OAG differs from most other government departments and agencies because of its independence from the government of the day and its reporting relationship to Parliament. Controls are in place to ensure the OAG’s independence, including exemptions from certain Treasury Board policy requirements, its status as a separate employer, and a 10-year non-renewable term for the Auditor General.

Office of the Auditor General of Canada, 2020-21 Employment Equity Report

In the 2018 report, the Auditor General explained why the report into inappropriate sexual behaviour in the Canadian Armed Forces was conducted in the following terms:

This audit is important because inappropriate sexual behaviour is wrong. It undermines good order and discipline, goes against the professional values and ethical principles of the Department of National Defence and the Forces, and weakens cohesion within the Forces… Moreover, if inappropriate sexual behaviour persists, it could negatively affect the Forces’ recruitment and retention efforts.Footnote 44

It conducted the review following the External Review of Sexual Harassment in the Canadian Armed Forces and referenced it. The 2000 Task Force also recommended that external advice and independent review should be enabled. They recommended that a three-member external advisory group, including one member from the private sector in the position of management, be appointed for 5-year mandates to advise on implementation in the public service.

During the deliberations, we considered whether the Auditor-General might be an appropriate institution to assume responsibility for the all-of-government approach to achieving employment equity. This was an imperfect fit, not least because the Employment Equity Act requires private sector reporting beyond Crown corporations. Employment Equity Act implementation requires auditing, certainly, and it requires so much more to foster ongoing implementation. We want the dynamic regulatory oversight and engagement of the Commissioner model foregrounded through the Pay Equity Commissioner.

However, the Auditor General’s model is important for another reason: it gives a really clear example of the independence, the people power and the resources necessary to do auditing work well. Serious auditing requires serious resource allocation:

Figure 6.2: Office of the Auditor General of Canada
Figure 6.2: Office of the Auditor General of Canada: description follows
Text description of figure 6.2
  • Office of the Auditor General of Canada (OAG): The OAG reports to Parliament. and employs approximately 700 people in its head office and four regional offices.* Its planned spending is nearly $120 million for 2022-23.**
    • The Powers of the Auditor General (AG):
      • Power to make examinations. The AG has the power to make any examinations and inquiries necessary in order to report under the Auditor General Act.****
      • The AG has the power to examine financial statements and other statements presented for audit by the President of the Treasury Board or Minister of Finance and issue an opinion as to the fairness of the statements.*****
      • Power to inquire and report. The AG’s annual reports to the House of Commons shall report on the Office’s work and whether they received the information and explanations required to carry out their work. The reports shall also call attention to anything significant e.g. money expended other than for purposes for which it was appropriated by Parliament.******
    • The OAG Executive Committee and Employees:
      • In addition to the Auditor General, there is a Deputy Auditor General, Commissioner, seven Assistant Auditors General, a Chief Audit Executive, and a General Counsel (along with the Commissioner of the Environment and Sustainable Development).
      • The OAG’s audit professionals include accountants, engineers, lawyers, management experts, information technology professionals, environmental specialists, economists, historians, and sociologists.
      • Auditors are supported in their work by specialists in law, professional practices, international relations, information technology, knowledge management, financial management, parliamentary liaison, and more.*******
    • The Commissioner of the Environment and Sustainable Development (CESD):
      • The CESD, who is appointed by the AG, audits the federal government’s management of environmental and sustainable development issues. To do so, the CESD provides independent analysis and recommendations on the federal government’s efforts related to the environment, climate change, and sustainable development.********
  • Auditing the OAG: An external auditor appointed by the Treasury Board audits the OAG’s financial statements annually. The OAG submits annual spending estimates to Parliament and appears before the Standing Committee on Public Accounts. The OAG also voluntary subjects its work to independent external reviews.***
  • * Office of the Auditor General of Canada, “Who We Are,” online: <https://www.oag-bvg.gc.ca/internet/English/au_fs_e_370.html#organization>. The OAG’s legislative basis is in the Auditor General Act, the Financial Administration Act, among other statutes.
  • ** Office of the Auditor General of Canada, “2022-23 Departmental Plan” (Feb. 4, 2022), online: <https://www.oag-bvg.gc.ca/internet/English/acc_rpt_e_44002.html>.
  • *** Office of the Auditor General of Canada, “Who We Are.” online: <https://www.oag-bvg.gc.ca/internet/English/au_fs_e_370.html#organization>.
  • **** Auditor General Act, RSC, 1985, c. A-17, s. 5
  • ***** Auditor General Act, RSC, 1985, c. A-17, s. 6; Financial Administration Act, RSC, 1985, c. F-11, s. 64.
  • ****** Auditor General Act, RSC, 1985, c. A-17, s. 7(1) and (2).
  • ******* Office of the Auditor General of Canada, “Who We Are” online: <https://www.oag-bvg.gc.ca/internet/English/au_fs_e_370.html#organization>.
  • ******** Office of the Auditor General of Canada, “Who We Are,” online: https://www.oag-bvg.gc.ca/internet/English/au_fs_e_370.html#organization; Auditor General Act, RSC, 1985, c. A-17, s. 15.1; The CESD has responsibilities under the Auditor General Act, the Federal Sustainable Act, and the Canadian Net Zero Emissions Accountability Act.

Office of the Privacy Commissioner of Canada (OPC)

Privacy rights are also fundamental rights protected by the Charter. The institutional structure is distinct from that of the commissioners housed within the Canadian Human Rights Commission. The resource envelope is significantly larger than that available to Accessibility Commissioner or the Pay Equity Commissioner:

Figure 6.3: Office of the Privacy Commissioner of Canada
Figure 6.3: Office of the Privacy Commissioner of Canada: description follows
Text description of figure 6.3
  • The Office of the Privacy Commissioner of Canada (OPC)*: The OPC reports to Parliament. As of March 2021, 323 peopled worked in the OPC.** Under the OPC is:
    • The Compliance Sector Deputy Commissioner::
      • Includes three directorates: Privacy Act Compliance Directorate (public sector), Personal Information Protection and Electronic Documents Act (PIPEDA) Compliance Directorate (private sector), and Compliance, Intake and Resolution Directorate (public and private sectors).
    • The Policy and Promotion Sector Deputy Commissioner:
      • Includes five directorates: the Government Advisory Directorate, the Business Advisory Directorate, the Policy, Research and Parliamentary Affairs Directorate, the Technology Analysis Directorate and the Communications Directorate.
    • The Corporate Management Sector Deputy Commissioner:
      • Includes four directorates: the Human Resources Directorate, the Finance and Administration Directorate, the Information Management/information Technology Directorate, and the Business Planning, Performance, Audit and Evaluation Directorate.
    • The Legal Services Directorate.
    • Assistant Privacy Commissioner(s) who can be appointed upon recommendation of the Commissioner.****
    • The OPC Executive Secretariat which supports the Commissioner.
    • The OPC’s Internal Audit Committee which provides the Commissioner with objective advice and recommendations in the areas of risk management, control and governance.
  • Federal Court may review Commissioner’s investigation results.***
  • * For a detailed summary see Office of the Privacy Commissioner of Canada, “Organizational Structure” (Oct 21, 2019), online: <https://www.priv.gc.ca/en/about-the-opc/who-we-are/organizational-structure/>. Unless otherwise indicated, citations are to this source. In 2018, following an organizational review, the OPC adopted a new structure to be more proactive and have more impact.
  • The Governor in Council appoints the Privacy Commissioner after consultation with leaders of each party in the Senate and House of Commons, and appointment by resolution of the Senate and House of Commons. Privacy Act, RSC, 1985, c. P-21, s. 53(1) [Privacy Act]
  • The Privacy Commissioner my appoint officer and employees as necessary to perform their functions and duties, and may engage on a temporary basis persons with technical or specialized knowledge to assist the Commissioner and with approval of Treasury Board, pay that person. Id. s. 58(1) and (2).
  • The Privacy Commissioner may also delegate powers, duties, and functions to any person, except for making reports to Parliament. Id. s. 59(1).
  • ** Government of Canada, “Infographics for Offices of the Information and Privacy Commissioner of Canada” (March 2021), online: <https://www.tbs-sct.canada.ca/ems-sgd/edb-bdd/index-eng.html#infographic/dept/256/people>.
  • *** Privacy Act, RSC, 1985, c. P-21, s. 41.
  • **** Privacy Act, RSC, 1985, c. P-21, s. 56(1).

Office of the Commissioner of Official Languages

Finally, the Office of the Commissioner of Official Languages is an example of a significant governmental priority – whose emergence was discussed in the introduction to this report and parallels that of employment equity. There is much to be learned from this model and it should be looked at as a close comparator. We heard that it reaches out directly and works with the Public Service Commission and TBS-OCHRO on official language representation and measures. Its regional office-structure is informative for the effective institutionalization of employment equity and other equity mandates.

Figure 6.4: Commissioner of Official Languages
Figure 6.4: Commissioner of Official Languages: description follows
Text description of figure 6.4
  • The Commissioner of Official Languages* (reporting to Parliament)
    • The Office of the Commissioner of Official Languages (OCOL) supports the Commissioner, with staff in a Head Office (Gatineau, QC) and five regional offices across Canada.**
    • In March 2021, 177 people were employed by OCOL (157 in the Head Office and 1-5 people in each of the regional offices).***
  • In addition to the Commissioner, other federal departments and agencies have special responsibilities with respect to official languages: Treasury Board of Canada Secretariat, Canada Heritage, Department of Justice, Public Service Commission of Canada, Canada School of Public Service, Standing Committees on Official Languages.****
  • * The Privacy Commissioner is an agent of Parliament appointed by the Governor in Council after consultation with leaders of each party in the Senate and House of Commons, and appointment by resolution of the Senate and House of Commons. Official Languages Act, RSC, 1985, c. 31 (4th Supp), s. 49(1) [Official Languages Act]; Office of the Commissioner of Official Languages, “Mandate & roles” (7 November 2022), online: https://www.clo-ocol.gc.ca/en/aboutus/mandate.
  • Staff and employees necessary for the Commissioner’s work shall be appointed in a manner authorized by law. Official Languages Act, s. 51.
  • The Privacy Commissioner my engage on a temporary basis persons with technical or specialized knowledge to assist the Commissioner and, with approval of Treasury Board, pay that person. Id. s. 52.
  • ** Office of the Commissioner of Official Languages, “About us” (12 September 2022), online: <clo-ocol.gc.ca/en/contact/index#head>.
  • *** Government of Canada, “Infographic for Office of the Commissioner of Official Languages” (17 November 2022), online: <https://www.tbs-sct.canada.ca/ems-sgd/edb-bdd/index-eng.html#infographic/dept/242/people>.
  • **** Office of the Commissioner of Official Languages, “Mandate & roles” (7 November 2022), online: https://www.clo-ocol.gc.ca/en/aboutus/mandate; Official Languages Act, RSC, 1985, c. 31(4th Supp), s. 70. The Commissioner has the power to delegate any powers, duties, or functions (except for reporting functions to the Treasury Board, Governor in Council, and Parliament, and appearing as a party in court proceedings).

Recommendation 6.15: Establishing an Office of Equity Commissioners should be closely considered with a view to harmonizing and appropriately funding and ensuring effective equity oversight and parliamentary reporting in the federal jurisdiction with consideration given to the structures and funding of the Office of Auditor-General of Canada, the Office of the Privacy Commissioner of Canada, and the Office of Official Languages.

Special programs: A role for the Employment Equity Commissioner

Introduction

There is latitude for employers to adopt voluntary employment equity programs linked to prohibited grounds of discrimination under the Canadian Human Rights Act. To recall, the grounds are:

  • race
  • national or ethnic origin
  • colour
  • religion
  • age
  • sex (including pregnancy)
  • sexual orientation
  • marital status
  • genetic characteristics
  • gender identity or expression
  • family status
  • disability, and
  • conviction for an offence for which a pardon has been granted or in respect of which a record suspension has been ordered

For example, and as mentioned earlier, the task force heard from employers who have already included 2SLGBTQI+ workers in employment equity programs. Section 16(1) of the Canadian Human Rights Act allows federally regulated employers and service providers to develop and implement voluntary “special programs”. It clarifies that:

It is not a discriminatory practice for a person to adopt or carry out a special program, plan or arrangement designed to prevent disadvantages that are likely to be suffered by, or to eliminate or reduce disadvantages that are suffered by, any group of individuals when those disadvantages would be based on or related to the prohibited grounds of discrimination, by improving opportunities respecting goods, services, facilities, accommodation or employment in relation to that group.

Section 16(3) similarly enables information to be collected on prohibited grounds of discrimination to adopt and carry out the special program, plan or arrangement. The Canadian Human Rights Commission may provide advice and assistance to the employer.

This task force has witnessed few signs that voluntary approaches can be counted on to achieve employment equity, although they can become the basis for claims for more sustained, formal programs as we have already observed for 2SLGBTQI+ and Black workers. Yet Section 54.1(2) of the Canadian Human Rights Act prevents the Canadian Human Rights Tribunal from requiring an employer to adopt a special program, plan or arrangement even when a discrimination complaint is substantiated.

In contrast, in Québec, there are strong measures to allow public institutions to require employment equity programs to be put in place.

Mandated employment equity on the basis of an inquiry by the Commission des droits de la personne et des droits de la jeunesse

The Québec Charter of Human Rights and Freedoms anticipates that public and some private enterprises can have an employment equity program imposed on them. Not only is the Commission des droits de la personne et des droits de la jeunesse (Cdpdj) required, when requested, to provide assistance to devise an employment equity program, to supervise their administration, to investigate and to require reports.Footnote 45 Section 88 allows that if the Cdpdj, after investigation, confirms that discrimination in employmentFootnote 46 exists, it may propose the implementation of an equal access employment program. If its proposal is not followed, it may take the matter to a tribunal, usually but not necessarily the Québec Human Rights Tribunal, to obtain an order for the program to be devised and implemented. This process was followed in the landmark decision, Commission des droits de la personne et des droits de la jeunesse v. Gaz métropolitain.Footnote 47

Researchers have expressed concern that the Cdpdj has not used this and other powers provided to it to redress discrimination more frequently,Footnote 48 although the Cdpdj indicated to our task force that it has launched a process of judicializing files that are ready to go before the human rights tribunal to seek compliance; in other words, it is ready to use its legislated powers proactively.Footnote 49 The key takeaway for the federal reform is that the power must be accompanied by a strong and efficient process for implementation. The distinct role of the Employment Equity Commissioner will be essential to the success of any proactive approach to diagnosing and implementing employment equity.

An Employment Equity Commissioner should play an important role in supporting employers, including providing brief written advice on the special programs that the employers seek to adopt.

It should also be in a position to recommend and monitor special programs.

Recommendation 6.16: The Employment Equity Commissioner should be able to recommend special programs if an investigation establishes underrepresentation of an equity group represented by a ground of discrimination in the Canadian Human Rights Act that warrants a special program to remedy it.

Investigatory powers are addressed in greater detail below, under initiatives to harmonize equity frameworks.

Harmonizing equity frameworks

Introduction

Bargaining agents must be able to bring forward employment equity complaints under the Employment Equity Act and trigger an audit, including when they have not been properly consulted.

Canadian Association of Public Employees, Submission to the EEART, 28 April 2022

If the laws on equity are not harmonized, the complexity will undermine their transformative potential. This would be tragic because we have rarely had greater consensus on the part of employers, workers and society at large on one basic truth: Canada needs all of us, all of our talents, all of our contributions, all of our know how and ways of thinking and doing and being in the world.

Employers did not come before the task force to complain about employment equity. They told us that they want to foster workplace equity but they want to do it in a coherent, comprehensive manner. FETCO for example wanted to know that new obligations would be “practicable” in the organizations, and that the burden on organizations would be “reasonable and realistic”.Footnote 50 The Conseil du Patronat du Québec asked us to harmonize the timelines during which reports would need to be submitted.Footnote 51 The task force took these considerations to heart.

Unions similarly told us that it was important to harmonize frameworks for equity.Footnote 52 Workers may feel discouraged by how hard it is to figure out their rights and to see what is actually being done to achieve and sustain substantive equality.

Harmonization must include the Employment Equity Act framework’s approach to accountability and penalties for non-compliance. If employment equity is truly an all of society matter, it must help to lead rather than lag behind the newer equity schemes for pay equity and accessibility.

The imperative of harmonization

It is the right moment to get the harmonization piece around federal equity legislation right. The Accessible Canada Act has come into force since 2019, with regulations in force since December 2021. Initial accessibility plans were required on 31 December 2022 for the federal public service and Crown corporations; they are required on 1 June 2023 for federal private sector organizations with over 100 workers, and on 1 June 2024 for federal private sector organizations with between 10 – 99 workers.Footnote 53

It is expected the Accessible Canada Act of 2019, will identify, remove and prevent employment barriers (including ones created by policies) for people with disabilities. Identifying barriers through employment systems reviews is also contained within the Employment Equity Act. We see an overlap in the two pieces of legislation with respect to employment systems reviews and the requirement to develop accessibility plans. There is nothing in the Accessible Canada Act to reconcile the overlap. We ask the taskforce to examine how the Employment Equity Act can support the requirements under the Accessible Canada Act.

Canadian Association of Professional Employees, Submission to the EEART, 28 April 2022

Accessibility is cross-cutting. The Accessible Canada Act necessarily extends beyond employment, to encompass the built environment, information and communication technologies, communication, procurement of goods, services and facilities, design and delivery of programs and services, transportation, and other areas designated under regulations.Footnote 54 To remove employment barriers, workplaces themselves need to consider many of these aspects, including the built environment, communications and workers’ access to adaptive technologies.

Harmonization between statutory frameworks would not necessarily be unidirectional and is likely to focus on the functional and operational integration to ensure that equity objectives are met.

Five areas would make a big difference to the effectiveness of regulatory oversight under the Employment Equity Act framework and across proactive equity mandates.

  • harmonize timelines for implementation
  • harmonize reporting
  • harmonize and update complaints procedures
  • harmonize and repurpose penalties, and
  • harmonize sustainable support for employment equity groups

Harmonize timelines: Achieving employment equity alongside barrier-free workplaces By 2040

I now believe quite firmly that the only way we’re going to achieve true and full accessibility is for the various standards and objectives to have a definable date in place and a government that is willing to enforce the implementation of these measures. … I looked at the previous reviews and listened to people’s real-life stories of the barriers they were facing and the dispiriting situations that they found themselves in…. I know there is a strong difference of opinion on this, but I would simply put it to you that as you look at other endeavours by government, whether they are matters related to climate change or the environment, or whether you’re dealing with students as I do at the University of Toronto in political science, you have to have a date, a deadline and a clear objective in mind. If you don’t, it just becomes an endless process.

The late Hon. David Onley, former Lieutenant Governor of Ontario, Presentation to the Standing Senate Committee on Social Affairs, Science and Technology, on Bill C-81, the Accessible Canada Act, 1 May 2019

First, harmonize timelines. The principle is simple: when commitments are made, they should be respected.

Goals are short term or long term under the Employment Equity Act. Implicitly then, they are meant to be achieved.

The Accessible Canada Act has a clear timeline. The Minister is responsible for realizing a Canada without barriers on or before 1 January 2040.

Implementing pay equity is a short-term, 3-5-year process. Most of the work subsequently is on maintaining pay equity.

Canada has committed to achieving the UN Sustainable Development Goals by 2030.

Achieving equality in the workplace should also come to be understood as something that must be achieved. That would mean that today’s children could count on employment equity – and enter workplaces who can welcome them and are simply working to sustain equity. It is of course a significant commitment, but we need to be able to achieve and sustain employment equity.

Achieving employment equity is complex, but attainable, like the barrier removal that must be achieved under the Accessible Canada Act by 2040.

A legislated governmental goal for achieving employment equity would give greater meaning to the establishment of short-term goals in the Employment Equity Act.

The Employment Equity Act should be revised to ensure that the long-term goals are understood to entail sustaining employment equity and a commitment to a broader societal striving for representation that reflects the Canadian population.

Recommendation 6.17: The Employment Equity Act should be revised to clarify that the Minister is responsible for achieving employment equity by 1 January 2040, and sustaining it.

Harmonize reporting:

The current public reporting structure requires analysts to perform significant effort in order to understand the current state of employment equity in an organization, how the employment equity numbers compare to the broader community and what progress has been made toward achieving an employer's employment equity plan.

Unifor, Strengthening the Federal Employment Equity Act: Unifor’s Submission to the Federal Employment Equity Task Force, April 2022 at 14.

Second, harmonize reporting. At one level, the Accessible Canada Act’s plans and the Employment Equity Act’s employment equity plans will contain overlapping features, and as mentioned above, there might be mutual learning. Our task force heard that in some cases, the precise character of the requirements under the Employment Equity Act are preferable to the approach currently adopted to accessibility plans.Footnote 55

The Accessibility Commissioner and the Employment Equity Commissioner should be able to streamline the reporting requirements and be legislatively encouraged to determine – through regulations or guidelines – who will assume responsibility for the employment-related dimensions. This means paying attention to the dates set, and the periodicity.

Table 6.1: Reporting requirements between the Employment Equity Act, Pay Equity Act, and the Accessible Canada Act
Type of reporting requirement Employment Equity Act Pay Equity Act Accessible Canada Act
Timing Every private sector employer shall, on or before June 1 in each year, file a report with the Minister of Labour about the preceding calendar year. (s. 18 (1)) Federally regulated employers under the Legislated Employment Equity Program (LEEP) must submit annual employment equity reports by June 1. Regulated entities must prepare and publish an initial accessibility plan by the following dates:
  • - The federal government, Crown corporations, Parliamentary entities, RCMP, and Canadian Forces - December 31, 2022
  • - Businesses with 100 or more employees - June 1, 2023
  • - Businesses with 10 to 99 employees - June 1, 2024. (Regs s. 4(1))
Regulated entities must notify the Accessibility Commissioner within 48 hours after they publish an accessibility plan, description of their feedback process, or progress report. (Regs ss. 7, 12, 16)
Regulated entities must prepare and publish an updated version of an accessibility plan within 36 months of when the plan was last required to be published. (Regs s. 4(4))
Regulated entities must publish a progress report by the anniversary of the date by which the accessibility plan was last required to be published for each year in which there is no date by which a version of the accessibility plan is required to be published. (Regs s. 13)
Contents Private sector employers’ reports must contain prescribed information and a description of measures the employer has taken to implement employment equity, including results and consultations between the employer and employee representative. (s. 18(1), (6)) Regulated employers’ reports must consist of prescribed statistical information, a narrative of employment equity activities, including results and consultations between the employer and employee representative.
The Pay Equity Commissioner may order an employer to conduct an internal audit and report results. (ss. 118, 120(1)-(4))
Initial accessibility plans must include policies, programs, practices and services in relation to identifying and removing barriers, and preventing new barriers. (ss. 47, 51, 56, 60, 65, 69)
Progress reports must contain information about the implementation of the regulated entity’s accessibility plan, including the manner in which persons with disabilities were consulted to prepare the progress report, the feedback received and how the feedback was taken into consideration. (ss. 44(1)-(5), 49(1)-(5), 53(1)-(5), 58(1)-(5), 62(1)-(5), 67(1)-(5), 71(1)-(5))
Exemptions The Minister may exempt an employer from reporting requirements, on application, for up to one year if special circumstances warrant. (s. 18(8))
Employers may file a consolidated report if the Minister finds they have common control/direction. (s. 18(7))
Upon request, the Pay Equity Commissioner may authorize extensions for posting plans, revised plans, or phase-in periods (s. 112).
The Governor in Council may make regulations exempting any employer, employee, position from the application of any provision in the Act. (s. 181(1)(a)
There are general exemptions from application of the Act for the governments of Yukon, the Northwest Territories and Nunavut (s. 10) and for Indigenous governing bodies (s. 11(1), until the Governor in Council orders otherwise.
Certain regulated entities are exempt from reporting obligations if they have an average of fewer than 10 employees during particular periods of time. (Regs s. 3(1), (2), (5))
Publication, distribution and retention Employment equity report shall be completed using the prescribed forms and in accordance with the instructions. (Regs Part II)
An employer shall provide a copy of the report to employees’ representatives and to the Commission. (s. 18(9)-(10))
LEEP employers complete and submit reports using the Workplace Equity Information Management System (WEIMS) online reporting tool.
Employers must retain all records, reports, electronic data or other documents relevant to the establishment of the pay equity plan for the period of the pay equity plan as well as a copy of the final pay equity plan that it posts until the day it posts the next revised pay equity plan or a later day prescribed by regulation. (s. 90)
The Regulations prescribe language , heading, and publication requirements (Regs ss. 14-15)
Alternative formats of accessibility plans, progress reports, and descriptions of feedback process must be made available. For print, large print or electronic, the federal government and large organizations of 100 or more employees have 15 days, small organizations of 99 employees or less have 20 days. For Braille and audio, all organizations have 45 days. (Regs ss. 8, 9, 17)
Regulated entities must retain accessibility plans or progress reports for seven years, either on a digital platform accessible to the public, or in electronic or print copy if the entity does not have such a platform. Feedback received must be kept for seven years (Regs ss. 18(1)-(2), 19)

Recommendation 6.18: Legislative amendments should permit the Accessibility Commissioner and the Employment Equity Commissioner to streamline reporting as it relates to barrier removal related to accessibility in employment. They should have the power to specify and appropriately adapt the requirements through regulations or guidelines.

At another level, our task force was told that public reporting can be significantly supported by having oversight that offers data software to improve the sophistication of the data received while simplifying the public reporting. The goal should be that users can assess and learn from the relative progress over time. This is an important responsibility that we would encourage an employment equity commissioner to develop, with the support of the Employment Equity Data Steering Committee.

Harmonize and update complaints procedures

Enforcement has been a longstanding challenge, and notoriously weak component of accessibility-related legislation across Canada. Without visible enforcement and tangible action to incentivize compliance, legislating accessibility standards is moot. As a stakeholder in the Onley review said, enforcement of the AODA is like “telling drunk drivers about impaired driving laws and asking them to obey or trying to enforce speed limits without radar” (2019).

Canadian Centre on Rehabilitation and Work, Report: Review of accessibility-related legislation, regulations and standards on employment in Canada, July 2021, citing The Hon. David Onley, Listening to Ontarians with Disabilities: Third Review of the Accessibility for Ontarians with Disabilities Act, 2005, January 2019

Third, harmonize and update complaints procedures. When lined up with other equity frameworks, the Employment Equity Act stands out. The Employment Equity Act traded a limited systemic human rights complaint prospect available in 1986 for a broad audit process. The hope might have been that we would gain in depth of commitment – a truly more proactive approach to dealing with underrepresentation that would build on the collaborative efforts of all.

Instead, we have a somewhat opaque process channeled through a dysfunctional bifurcation between the Labour Program and the Canadian Human Rights Commission that may mask rather than remove barriers to representation. Progress right from the start has been extremely slow.Footnote 56

The regulatory oversight under the Employment Equity Act needs to be at once close to employers, not necessarily geographically but in terms of the comprehensive quality and nature of the support. And it needs to be able to respond when there is no reasonable progress.

The scope for complaint is narrow. As mentioned above, the employer or the CHRC may seize the Tribunal to review a direction following an audit. Now, 23 years later, the Tribunal has yet to render a substantive decision. The severely limited auditing, despite the best efforts of the small, dedicated and knowledgeable staff working on employment equity in the proactive compliance branch, might explain why.

We have recommended clarifying that employers are required to make reasonable progress on achieving employment equity, and a responsibility to sustain employment equity once it has been achieved. The following recommendation ensures the Employment Equity Commissioner’s oversight powers:

Recommendation 6.19: The Employment Equity Act should be amended to permit the Employment Equity Commissioner to

  • attempt to negotiate a written undertaking from the employer to take specified measures to remedy the failure to make reasonable progress on achieving employment equity, in keeping with Section 25(1) of the Employment Equity Act; and if unsuccessful,
  • issue directions including special measures to remedy the non-compliance

This recommendation respects the existing structure of the Employment Equity Act, and is sustainable.

A complaints-based process should not be allowed to take over an approach that stimulates compliance through persuasion and incentives and regulatory support and oversight.

The 1997 National Capital Alliance on Race Relations (NCARR) v. Health and Welfare Canada showed what was possible when the evidence was made available to be able to demonstrate the existence of systemic discrimination in the federal public service. It is an example of the useful contributions that complaints procedures can make to redressing systemic racism and systemic discrimination.Footnote 57 Our task force was told by senior public officials that this case made a concrete difference toward achieving equality in the workplace. This perspective was reflected in the 2000 Canadian Human Rights Act Review Panel.

Had the amendments been in place earlier, the decisions rendered in [Action travail des femmes and NCARR would not be part of Canadian jurisprudence. The understanding they have given us of systemic discrimination itself … and the rationale for an employment equity remedy, would not be there.

J. Helen Beck, Jeffrey G. Reitz and Nan Weiner, “Addressing Systemic Racial Discrimination in Employment: The Health Canada Case and Implications of Legislative Change” (2002) 28:3 Canadian Public Policy 373 at 387- 388.

We did not hear during our consultations that the solution is simply to return to a complaints model and jettison auditing. On the contrary, the 1996 amendments were put in place to go beyond the limits of a complaints-based approach. Our task force agrees with the 2000 Canadian Human Rights Act Review Panel: we should enable the Canadian Human Rights Act and the Employment Equity Act to complement and reinforce each other, to eliminate enforcement gaps.Footnote 58

It is time, now, to arrive at a balance of both.

The task force listened carefully to the many representations made that the Employment Equity Act needs to be enforceable. We understood those concerns and we recognized that the Employment Equity Act is an outlier, even amongst the two other proactive equity models for pay equity and accessibility:

Table 6.2: Complaints Procedures under the Accessible Canada Act and the Pay Equity Act:
Aspect of complaint procedures Accessible Canada Act Pay Equity Act
Filing a complaint A complaint may be filed with the Accessibility Commissioner by an individual who has suffered physical or psychological harm, property damage, economic loss or has been otherwise harmed by a regulated entity’s contravention of regulations made under the Accessible Canada Act. (s. 94(1)) A complaint may be filed with the Pay Equity Commissioner for: a violation of the Pay Equity Act, regulations or order; bad faith, arbitrariness, or discrimination in discharging duties under the Act; or reprisals by an employer or bargaining agent. (ss. 149-152)
A notice of dispute or objection may be filed relating to a pay equity plan. (s. 147-148)
Notice to Commissioner The Accessibility Commissioner must cause a written notice of a complaint to be served on the regulated entity against which the complaint was made. (s. 95(5))  Certain employers must notify the Pay Equity Commissioner that it has established a pay equity committee. (ss. 16(3), 17(3), 67(3), 68(3))
An employer or pay equity committee must notify the Pay Equity Commissioner if they determine that there is at least one predominantly female job class but no predominantly male job classes, unless a regulation provides otherwise. (s. 39)
Investigation The Accessibility Commissioner may investigate a complaint. (s. 95) The Pay Equity Commissioner may investigate a complaint, dispute or objection. (s. 156) The Commissioner must attempt to assist the parties to settle matters appropriate for settlement. (s. 154(1))
Procedural mechanisms The Commissioner may use dispute resolution mechanisms to attempt to resolve complaints. (s. 99)
The Commissioner must deal with complaints as informally and expeditiously as the circumstances and considerations of fairness and natural justice permit. (s. 109)
There is generally a right to present evidence and make representations to the Commissioner for the employer, bargaining agent and member that represents non-unionized employees, after filing a notice of dispute. (s. 157)
The Commissioner may refer an important question of law or jurisdiction to the Chairperson of the Canadian Human Rights Tribunal. (s. 162)
Orders After concluding an investigation, the Commissioner must dismiss an unsubstantiated complaint or, for a substantiated complaint, order a regulated entity to take corrective measures, provide a complainant with opportunities they were denied or pay compensation to the complainant. (ss. 101(1)-102(1)) After concluding an investigation, the Commissioner must dismiss an unsubstantiated complaint or objection, or, for a substantiated complaint or objection, order measures such as requiring the employer or bargaining agent to terminate certain behaviour, pay compensation to the employee, or amend the pay equity plan. (ss. 158-160)
Review, appeal and further action The Commissioner may on application review a decision not to investigate or discontinue a complaint. After the review, the Commissioner’s decision is final and not to be reviewed by a court. (s. 103)
An appeal of a decision or order may be made to the Canadian Human Rights Tribunal by a complainant or regulated entity. The Tribunal’s decision is final and not to be reviewed by a court. (ss. 104(1), 106(4))
A party may request that the Commissioner review a decision to dismiss or discontinue an investigation of a dispute, objection or complaint. (s. 161)
An appeal may be made to the Canadian Human Rights Tribunal by an employer, bargaining agent or other person affected by a decision or order. The Tribunal’s decision is final and not to be reviewed by a court. (ss. 168-171)

What we did not receive was a litany of requests for individual complaints to be brought before the Employment Equity Tribunal about individual employment equity determinations. There is a deep understanding that employment equity is systemic and proactive.

There are other reasons to be cautious about fully opening up the ability to bring complaints.

Pay equity is distributive but for workers it has been crafted so that it only ever benefits employees who are compared to each other. So, while the pay equity plan prevails to the extent of any inconsistency with existing collective agreements, pay increases are deemed to be incorporated into the collective agreement. The kind of complaints that would come before the Pay Equity Commissioner are much more contained in scope than those that could arise in the context of employment equity. Lengthy procedures on affirmative action from jurisdictions like the United States, India and South Africa reveal the real risks of judicializing and of adopting a rigid quota-based approach.

Individual complaints procedures can be more than a distraction. They can overwhelm the systemic focus of the Employment Equity Act if they are not carefully tailored toward achieving the systemic remedy. The employment equity framework should not devolve into an individual complaints mechanism. The focus has to remain on making the requirements of the Act enforceable.

We did not take these risks lightly.

The example in Northern Ireland shows careful attention to encouraging actively negotiating agreements while permitting legally enforceable agreements to be sought by the Commission comes close to the kind of model that we prefer. It was built upon and is not terribly far from our model, despite the very significant differences in coverage (Catholic and Protestant men and women) as discussed in Chapter 3. Regulatory oversight appears to be sufficiently strong and there are important if invariably limited indicators of success over time. The key seems to be that employment equity is actually implemented, with effective auditing and compliance measures as well as a willingness and ability on the part of the Commission to use its powers.Footnote 59

So, what would a complaints procedure add if there is a well-functioning Employment Equity Commissioner?

What we recommend is a dynamic process that incentivizes agreement rather than litigation.

The Canadian Labour Congress has expressed the view that bargaining agents should be able to bring complaints.Footnote 60 We have kept the focus on shoring up the meaningful consultation pillar.

Our task force proposes a limited complaint model, that may be brought by any worker in an employer’s covered workplace, on the grounds that an employer’s implementation obligations under the Employment Equity Act are not being respected.

The complaints are to be brought to the Employment Equity Commissioner.

There is to be a presumption that the Employment Equity Commissioner shall dismiss a complaint unless the Commissioner considers there to be sufficient evidence, brought by the complainant, to dislodge the presumption that the internal mechanisms to implement employment equity are functioning appropriately.

Should the Employment Equity Commissioner decide that there is sufficient evidence, an audit by the Employment Equity Commissioner would be the remedy.

The proposed use of the presumption adapts a recommendation provided by the Canadian Human Rights Act Review Panel in 2000 to the context of the Employment Equity Act framework.

The entire mechanism as proposed is meant to prevent the complaints procedure from simply bypassing existing complaints or grievance procedures available to federally regulated employees.

The following recommendations support the establishment and powers of the recommended Employment Equity Commissioner:

Recommendation 6.20: Sections 40(3.1), 40.1(2) and 54.1 Canadian Human Rights Act, which cumulatively prevent employment equity decisions from being rendered by the Canadian Human Rights Tribunal, should be repealed.

Recommendation 6.21: The Employment Equity Act should be amended to permit cases arising in the circumstances currently anticipated under Sections 40(3.1), 40.1(2) and 54.1 Canadian Human Rights Act to be submitted in the form of a complaint to the Employment Equity Commissioner.

Recommendation 6.22: The discretion in Section 41(2) Canadian Human Rights Act for the Canadian Human Rights Commission should be transferred to the Employment Equity Commissioner.

Recommendation 6.23: The Employment Equity Act should be amended to enable a complaint to be brought by any worker in an employer’s covered workplace, on the grounds that an employer’s implementation obligations under the Employment Equity Act are not being respected.

Recommendation 6.24: The complaints should be brought to the Employment Equity Commissioner.

Recommendation 6.25: The Employment Equity Commissioner shall dismiss a complaint unless the Commissioner considers there to be sufficient evidence, brought by the complainant, to dislodge the presumption that the internal mechanisms to implement employment equity are functioning appropriately.

Recommendation 6.26: Should the Employment Equity Commissioner decide that there is sufficient evidence, an audit by the Employment Equity Commissioner would be the remedy.

Recommendation 6.27: The Employment Equity Commissioner should have the legislative authority and necessary powers to investigate the covered complaints.

Recommendation 6.28: The Employment Equity Commissioner should be legislatively encouraged to use alternative dispute resolution techniques to resolve disputes.

The following recommendations should support a strengthened role for the Employment Equity Tribunal:

Recommendation 6.29: The English-language title of the Employment Equity Review Tribunal should be renamed the Employment Equity Tribunal.

Recommendation 6.30: The Employment Equity Tribunal should have the staff and resources necessary to be able to hear and decide matters in an expeditious manner.

Care will be required to ensure that the Employment Equity Tribunal’s powers align with those allotted to the Employment Equity Commissioner.

Recommendation 6.31: The Employment Equity Commissioner should be able to refer to the Employment Equity Tribunal an important question of law that the Employment Equity Commissioner might consider to be more appropriate for the Tribunal to determine.

The provisions in the Employment Equity Act and the Canadian Human Rights Act should be reviewed to ensure that the role, powers and responsibilities of the Employment Equity Tribunal are fully in keeping with the recommendation to implement an Employment Equity Commissioner. For ease of reference, the provisions might be moved from the Canadian Human Rights Act into the Employment Equity Act. The review includes the following specific recommendations:

Recommendation 6.32: The role of the Employment Equity Tribunal should be revised to:

  1. Provide that it is responsible for responding to an inquiry into a question of law or jurisdiction referred to the Chairperson of the Tribunal by the Employment Equity Commissioner by rendering a determination
  2. Clarify that it is responsible for rendering a decision on appeal from a decision of the Employment Equity Commissioner referred to it by an employer, bargaining agent or other member of the mandated employment equity committee, and
  3. Include a strong privative clause consistent with the case law including and subsequent to Canada (Minister of Citizenship and Immigration) v. Vavilov, [2019] 4 SCR 653; 2019 SCC 65

The issue of qualifications of members presents its own challenge and should not be left to chance.

Recommendation 6.33: Section 48.1(2) of the Canadian Human Rights Act should be amended to ensure that appointments of members of the Canadian Human Rights Tribunal must be made having regard to the need for adequate knowledge and experience in employment equity matters among the members of the Tribunal.

We were concerned to ensure that the tribunal would both be public and encourage alternative dispute resolution:

Recommendation 6.34: Section 29(3) Employment Equity Act should be replaced with the equivalent of Section 166 (1) & (2) of the Pay Equity Act, to clarify that a hearing must be conducted in public, but the member or panel conducting the inquiry may, on application, take any measures and make any order that the member or panel considers necessary to ensure the confidentiality of the hearing under the conditions provided in Section 166 (1)(a) –(d) and Section 166(2).

Recommendation 6.35: The Employment Equity Act should expressly enable the Employment Equity Tribunal to use methods of alternative dispute resolution, including mediation where appropriate, to conduct hearings virtually, to provide for contemporary open court principles that include posting decisions on the appropriate website(s), and to include contemporary approaches of sending a request to appear before the Employment Equity Tribunal beyond registered mail.

Finally, we wanted to ensure that orders would be enforceable and that the relationship between tribunals and their powers would be clarified:

Recommendation 6.36: Orders made under the Employment Equity Act by the Employment Equity Commissioner or the Employment Equity Tribunal should be made enforceable by the Court.

Recommendation 6.37: The Employment Equity Act should clarify the relationship between the powers of the Tribunal under the Canadian Human Rights Act, and the powers set out in the Employment Equity Act, with particular attention to the relationship between Section 29(1)(c) of the Employment Equity Act and the limitation in relation to privileged evidence under Section 50(1)(4) of the Canadian Human Rights Act.

Harmonizing and repurposing penalties

Section 36 sets out monetary penalties for violations of the Employment Equity Act. However, the violations under Section 35 are for failures to file the employment equity report required, and without reasonable excuse, failure to include the required information, or knowingly providing false or misleading information. The penalties are limited to $10,000 for a single violation or $50,000 for repeated or continued violations.

Far from new, reports on compliance have consistently challenged what is meant by the term, both under the legislation and under the Federal Contractors Program:

It appears that the very definition of "compliance" is problematic. In FCP today, “compliance” effectively is defined as not refusing to do employment equity, rather than the stated requirement in the U.S. where “good faith effort” is defined and treated as actually making progress. A related problem for compliance reviews is that there is no way to distinguish between different levels of involvement/commitment to employment equity. This suggests that a compliance “continuum” – a range of compliance tools or procedures – would help. Such a continuum could be linked to a range of penalties rather than just the ultimate penalty of disbarment.Footnote 61

Regulatory oversight needs to be taken seriously to avoid undermining the objectives of the Employment Equity Act framework. That includes adapting measures to apply to the Federal Contractors Program.

In Chapter 4, we recommended that the Employment Equity Act be amended to ensure that reasonable progress goes beyond simply producing a plan that could yield reasonable progress if it were implemented. The plan needs to be implemented.

Stakeholders who came before our task force recognized that penalties were at best a last resort. They understood that a focus on penalties would detract from the collective work needed to build inclusive practices in the workforce.

What bothered stakeholders was the sense that the Employment Equity Act could essentially be ignored, and that employers could start their processes if and when they were audited by the CHRC. That seemed to challenge the good faith process that underlies the reflexive Employment Equity Act framework.

The Canadian Human Rights Commission in its submissions to the task force added that a full range of remedial powers should be made available. These included penalties scaled to the level of non-compliance and the size of the employer.

Ensuring that penalties are appropriate to achieve results is also part of Canada’s international obligations.Footnote 62

Our task force agreed. The main recommendations made are to harmonize and repurpose penalties under the Employment Equity Act framework, so that they reflect the more contemporary understandings in the other related equity legislation, the Accessible Canada Act and the Pay Equity Act.

Table 6.3: Penalty provisions under the Employment Equity Act, Accessible Canada Act, and Pay Equity Act
Penalty provisions Employment Equity Act Accessible Canada Act Pay Equity Act
Regulations Employment Equity Regulations, SOR/96-470 Accessible Canada Regulations, SOR/2021-241  Pay Equity Regulations, SOR/2021-161
Penalty provisions Part 3 – Assessment of Monetary Penalties Part 3 – Administrative Monetary Provisions, Sections 25(1)-27(2)
AND
Regulations, SCHEDULE 2 (Section 23 and subsections 25(1) and 26(1)) Penalties
Part 7 – Administrative Monetary Penalties, ss. 125-
AND
CHAPTER 8 – PENAL PROVISIONS
Range of penalties Violations (not offences)
Per s. 35(1), every private sector employer commits a violation of this Act who
  • (a) without reasonable excuse, fails to file an employment equity report as required by section 18;
  • (b) without reasonable excuse, fails to include in the employment equity report any information that is required, by section 18 and the regulations, to be included; or
  • (c) provides any information in the employment equity report that the employer knows to be false or misleading.
Assessment of monetary penalty 36 (1) The Minister may, within two years after the day on which the Minister becomes aware of a violation, issue a notice of assessment of a monetary penalty in respect of the violation and send it by registered mail to the private sector employer.
(2) The amount of a monetary penalty shall not exceed
  • (a) $10,000 for a single violation; and
  • (b) $50,000 for repeated or continued violations.
Gravity of Offences
Classification for gravity of offenses (minor, serious, very serious) is provided in the Act (s. 28, Section 1 – Classification of Violations).
Minor
Minor penalties for regulated entities (ss. 47(1)-73(8)) include: failure to implement or update the accessibility plan within prescribed time, failure to give notice to the accessibility commissioner, failure to consult persons with disabilities, failure to make the accessibility plan or progress report available on request, failure to establish process for receiving feedback, failure to notify accessibility commissioner of the publication of process or progress report.
Person other than a regulated entity:
  • First violation: $250 - $2500
  • Second violation: $2500- $6250
  • Third violation: $6250 - $12,500
  • Fourth or subsequent violation: $12,500-$18,750
Small Business:
  • First violation: $500-$5000
  • Second violation: $5000-$12,500
  • Third violation: $12,500-$25,000
  • Fourth or subsequent violation: $25,000-$37,500
Regulated entity other than a small business:
  • First violation: $1000-$10,000
  • Second violation: $10,000-$25,000
  • Third violation: $25,000-$50,000
  • Fourth or subsequent violation: $50,000-$75,000
Serious
A serious offence is failure to provide reasonable assistance to Accessibility Commissioner during inspection (s. 73(8)).
Person other than a regulated entity:
  • First violation: $2500-$6250
  • Second violation: $6250-$12,500
  • Third violation: $12,500-$25,000
  • Fourth or subsequent violation: $25,000-$37,500
Small Business:
  • First violation: $5000-$12,500
  • Second violation: $12,500-$25,000
  • Third violation: $25,000-$50,000
  • Fourth or subsequent violation: $50,000-$75,000
Regulated entity other than a small business:
  • First violation: $10,000-$25,000
  • Second violation: $25,000-$50,000
  • Third violation: $50,000-$100,000
  • Fourth or subsequent violation: $100,000-$150,000
Very Serious Very serious offences are: obstruction of Accessibility Commissioner or their delegate, giving false statements either to the Accessibility Commissioner and/or delegate or in the making of any records, reports, etc. (ss. 124-126)
Person other than a regulated entity:
  • First violation: $6250-$12,500
  • Second violation: $12,500-$25,000
  • Third violation: $25,000-$37,500
  • Fourth or subsequent violation: $37,500-$62,500
Small Business:
  • First violation: $12,500-$25,000
  • Second violation: $25,000-$50,000
  • Third violation: $50,000-$75,000
  • Fourth or subsequent violation: $75,000-$125,000
Regulated entity other than a small business:
  • First violation: $25,000-$50,000
  • Second violation: $50,000-$100,000
  • Third violation: $100,000-$150,000
  • Fourth or subsequent violation: $150,000-$250,000
Administrative monetary penalties
Per s. 127(2) of the Pay Equity Act, the maximum penalty in respect of a violation that may be fixed under regulations (TBD) is:
  • (a) $30,000 for an employer that... has between 10-99 employees; OR
  • (b) $30,000 for a bargaining agent representing some or all of the unionized employees of an employer referred to in paragraph (a);
  • (c) $50,000 for an employer that… is considered to have 100 or more employees; OR
  • (d) $50,000 for a bargaining agent representing some or all of the unionized employees of an employer referred to in paragraph (c).Footnote 63
Penal Offences Per s. 115 of the Pay Equity Act: 115. Whoever (1) contravenes the second paragraph of section 4 (failure to submit a report), the first paragraph of section 10 (failure to establish a company-wide pay equity plan), section 14 (failure to post and distribute pay equity information), 14.1 (failure to retain pay equity plans), 15 (acting in bad faith, arbitrary or discriminatory manner), 16 (failure to enable employees to participate on pay equity committee) or 23 (failure to allow non-represented employees to designate representatives to the pay equity committee), the second paragraph of section 29 (failure of members of pay equity committee to protect confidentiality of data obtained), the first paragraph of section 31 (failure to establish a pay equity plan), section 34 (failure to establish a pay equity plan for enterprises with less than 50 employees), 35 (failure to post pay equity information), 71 (failure to make adjustments to compensation within applicable time limits), 73 (reducing remuneration payable to one employee to achieve pay equity) or 75 (failure to post the results of pay equity plan within prescribed time), the second paragraph of section 76 (failure to post amendments to plan referenced in s. 75), section 76.1 (failure to conduct a pay equity audit), 76.2.1 (failure to conduct a participatory process in audit) or 76.3 (failure to post audit results in the prescribed timeframe), the second paragraph of section 76.4 (failure to post amended results subject to employee feedback) or section 76.5.2 (reducing remuneration to maintain pay equity), 76.6.1 (failure to pay departing employee in lump sum), 76.8 (failure to retain information to conduct pay equity audit for six years) or 76.9 (acting in bad faith, arbitrary or discriminatory manner) (2)fails to send a report, a document or information required under this Act, or provides false information, (3)takes or attempts to take reprisals as described in section 107, or (4)hinders or attempts to hinder the Commission, a member or mandatary of the Commission or a member of its personnel in the performance of its or his duties, is guilty of an offence and is liable to a fine.
The fine shall be of
  • Fewer than 50 employees: $1,000 - $15,000;
  • Fewer than 100 employees: $2,000 - $30,000;
  • 100 or more employees: $3,000 - $45,000; and
  • Any other person: $1,000 - $15,000.
For a second or subsequent offence, the amounts set out shall be doubled.
Additional notes The Employment Equity Regulations do not create more offences or penalties than what is prescribed in the Act. The closest thing to penalties that are available for federal public sector employers are directed undertakings by a compliance officer (s. 25(1)). Directions are very limited as per s. 33(1). Per s. 23 of SOR/2021-241, small business means a regulated entity with an average of fewer than 100 employees during the year. Per s. 4, this Act applies to every employer whose enterprise employs 10 or more employees. To date, the regulations do not create new penalties or offences. 

Recommendation 6.38: To ensure reasonable progress in the implementation of employment equity, penalties should be updated and harmonized with comparable penalties under the Pay Equity Act and the Accessible Canada Act, scaled to the size and nature of the employer and to the level of non-compliance.

Harmonize sustainable support for employment equity groups

Establish an Ombudsperson for Indigenous Reconciliation as a trusted safe space mandated to resolve the widest possible range of issues pertaining to bias, racism, discrimination faced by Indigenous federal employees. The office of the Ombudsperson for Indigenous Reconciliation would provide managers and employees with a confidential environment where informal conversations and conflict resolution drive improved workplace understanding, support and relationships.

Many Voices one Mind: A Pathway to Reconciliation: Welcome, Respect, Support and Act to fully Include Indigenous Peoples in the Federal Public Service. Final Report of the Interdepartmental Circles on Indigenous Representation, 4 December 2017.

Finally, we wanted to pay careful attention to the request by several employment equity groups to have someone with regulatory oversight available to foster understanding and support in a transversal manner. They would allow workers themselves to seek confidential guidance, informal interventions in support of employment equity interventions, training and enhanced capacity for implementation of the Employment Equity Act alongside pay equity and accessibility.

We did not simply want to multiply responsibilities. To foster integration and harmonization, we would recommend that in addition to vesting transversal responsibility for women workers in the Pay Equity Commissioner and transversal responsibility for disabled workers in the Accessibility Commissioner, four newly created deputy commissioners, or ombudspersons should be created, with transversal responsibilities for Indigenous reconciliation (First Nations, Métis and Inuit workers), Black workers, racialized workers and 2SLGBTQI+ workers.

Recommendation 6.39: In addition to vesting transversal responsibility for women workers in the Pay Equity Commissioner and transversal responsibility for disabled workers in the Accessibility Commissioner, four newly created deputy commissioners, or ombudspersons should be created, with transversal responsibilities for Indigenous reconciliation (First Nations, Métis and Inuit workers), Black workers, racialized workers and 2SLGBTQI+ workers.

The overall funding of the Office of Equity Commissioners would need to be commensurate with the significance of this additional responsibility.

Oversight through employment equity leadership at the top

Introduction

Finally, it is an important principle that employment equity goals should apply internally to the public oversight bodies that apply the Employment Equity Act framework. Our task force heard particular concern to sustain leadership on equity within the federal public service.

Deputy Minister Champions

Deputy Minister champions’ role entails championing a range of corporate initiatives, programs or functional communities across the federal Public Service. They are appointed by the Clerk of the Privy Council, and according to the Government of Canada website are asked to provide support and guidance to communities or programs from a strategic level and “to build awareness of and advance issues.” The Deputy Minister champions structure includes a range of university champions with a role in public service renewal, as well as deputy minister champions of development programs and communities, including the human resources community, Christine Donoghue, who we met separately in relation to the work of TBS-OCHRO.

Our task force was pleased to meet with the three Deputy Minister champions appointed for employment equity – Indigenous Federal Employees, Federal Employees with Disabilities, and Visible Minorities. Their comments to the task force have been discussed at various points throughout this report. We met with each of the three Deputy Minister champions independently; they appeared alongside members of the equity group(s) that they support. Some of the representatives who came with them had already met with the task force, through their separately organized networks. The network briefs were submitted to the task force both autonomously and in consolidated form through TBS-OCHRO.

We were told that the Deputy Minister champion structure has flourished throughout the public service, although support for them was uneven. We were told that they understand their role as advocating on behalf of the equity group that they support, embodying the principle that those with relatively greater privilege should use that power to advocate for greater inclusion. Others appropriately stressed co-creation and consultation, underscoring that bargaining agents must play a crucial role in achieving employment equity.

The Emerging from the Purge Report offered the following reflection on the various roles of champions and allies that have emerged throughout the federal public service:

Some entities make use of executive-level Champions for different marginalized groups and who often act as spokespeople at executive tables for their groups. Champions are not paid for this role and they do not generally receive training to support them in their responsibilities. Further, the degree to which Champions can impact EDI efforts seems to depend on their degree of authority in their main line of work, as opposed to having authority because of the Champion role itself. Overall, there is a lack of clarity on the specific roles and responsibilities between equity staff, Champions, network chairs and positive space ambassadors. The degree of interaction between Champions, equity staff, and ERGs also varies greatly between entities.

LGBT Fund et al., Emerging from the Purge: Reviewing the State of LGBTQI2S Inclusion in Canada’s Federal Workplace (Ottawa: LGBT Purge Fund, 2021) at 60.

The Canadian Labour Congress also queried the effectiveness of the system of champions.Footnote 64

It is terribly important for the ally relationship to be appropriately understood. The role of champion is crucial, but it should never supplant the role of meaningful consultation with employees themselves, through their chosen representatives. As discussed in Chapter 5, the meaningful consultation pillar needs to be strengthened, independently. While members of equity groups may benefit from the appropriate support of allies, they also require autonomy. Champions may provide helpful guidance and support. But champions are part of the third pillar, accountability, and along with other Deputy Ministers, they need to be attentive to their relative power, and assessed on the results that they achieve.

Achieving goals in the federal public service: Linking responsibility and performance

Legislation should achieve results. Public monitoring agencies should meet their goals, including those under the Employment Equity Act.

The federal public service already has a Treasury Board Policy on Results, which took effect on 1 July 2016.

For the federal core public administration, the Treasury Board, this across-the-board policy has as its dual objective to “improve achievement of results across government” and “enhance the understanding of the results government seeks to achieve, does achieve, and the resources used to achieve them”. The Treasury Board secretariat is expected to provide leadership, oversee resource alignment reviews and evaluations, report, raise compliance issues with the deputy head or president of the Treasury Board, and support policy implementation.

The Policy on Results applies to almost all departments as defined in the Financial Administration Act and includes Parliamentary entities and Crown corporations. It includes ESDC, which is responsible for monitoring the Employment Equity Act as it applies to the federally regulated private sector, including reporting by the federally regulated private sector. It also applies to the CHRC, whose compliance audits include both the federal public service as well as federally regulated private sector employers.

In understanding this policy, the Labour Program staff stressed that “equity-related targets can feature in different ways in performance measurement and evaluations” conducted under this policy.

The CHRC’s report recommends “working toward a diversity and inclusion plan that is developed in consultation with employees and unions and is regularly updated.”Footnote 65 The CHRC reports that a focal point was appointed in 2020 to support implementation of the employment equity and anti-racism agenda. The report focused a lot on comments garnered from consultations. It emphasized accommodations. Starting with the requirement to conduct an employment systems review might have offered more conclusive recommendations.

As of 1 April 2021, deputy heads need to designate a senior official responsible for employment equity, diversity and inclusion (SDOEEDI). That senior designated official’s responsibilities are set out in a Directive on Employment Equity, Diversity and Inclusion dated 1 April 2020.The task force heard that this move to accountability should become a part of how deputy ministers are evaluated. This would send a strong message.

Several networks that appeared before the task force emphasized that deputy ministers should be held directly accountable for achieving results under the Employment Equity Act through their performance evaluations.

We agree. It has long been reaffirmed: responsibility for achieving employment equity must reside in positions sufficiently senior in an organization to make management’s commitment clear to all.Footnote 66 Government can set a crucial example in this regard.

Recommendation 6.40: Deputy heads in the federal public service should be held directly accountable through their own performance evaluations for ensuring reasonable progress to achieve employment equity, and to sustain employment equity once it has been achieved.

Recommendation 6.41: Other employers covered under the Employment Equity Act framework should report on how their senior leadership is held accountable in their performance evaluations for ensuring reasonable progress to achieve employment equity, and to sustain employment equity once it has been achieved.

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