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Two Levers for Eliminating Wage Discrimination

Two Levers for Eliminating Wage Discrimination

A few weeks ago, the Premier announced the government’s intention to pass a pay equity law for the private sector in 2026. But days later, the Speech from the Throne referred to a law on pay transparency.

Was it a mistake? A government flip flop? Or a step by step approach for adopting both laws in 2026?

For the New Brunswick Pay Equity Coalition, these two announcements go hand in hand because pay transparency and pay equity are complementary levers to reach the same goal: better protection of workers’ rights in New-Brunswick.

Combined, these two measures have the potential to eliminate different forms of wage discrimination in the labour market.


Pay Equity

A pay equity law is meant to eliminate wage gaps between female dominated jobs and male dominated jobs which have the same value at the same employer.

For as long as can be remembered, many jobs held by women have been devalued, and especially, underpaid. Yes, the Pay Equity Act, 2009 has improved the situation in the public sector. And sectors that were in the spotlight in the last few years, such as the care sector, childcare and early childhood education have also seen some progress. Nonetheless, pay equity has yet to be reached in these sectors. And what about other predominantly female jobs in the private sector: cashiers, administrative assistants, workers in fish processing plants, cleaning ladies, etc.?

A law is needed to ensure equal pay for work of equal value for the whole province. It is a fundamental and unquestionable right.


Pay transparency

But have we even reached wage parity, that is, equal pay for equal work? As long as wages are a well-kept secret, there is no way of knowing.

This is where pay transparency comes in: it shows gaps in remuneration and protects the right to talk about salary in order to eliminate them.

To be successful, a law on pay transparency must require employers to include salary scales when posting job opportunities, be they internal or public. Employers should not be allowed to ask candidates about their compensation history, a practice that tends to perpetuate pay inequity. And since silence promotes inequities, employers should not be permitted to forbid discussions about salaries among their employees.

In short, these measures will finally give workers the information needed to understand, compare and demand a fair salary.


Two levers to eliminate pay discrimination

In other words, pay transparency sheds light on wage gaps; but only pay equity can eliminate them.

Adopting a pay transparency law will give workers access to information they need to enforce their right to a salary free of discrimination.

However, if the provincial government indeed wants to correct historic under-compensation for women’s jobs, it must adopt a pay equity law for the private sector.

When pay equity and pay transparency are combined, the labour market undergoes a transformation, all jobs are valued and the workforce is more engaged because the true value of their work is recognized.

This is what the Coalition expects from the provincial government in 2026.

 

Raphaëlle Valay-Nadeau
Chair, New Brunswick Coalition for Pay Equity