Reference no: EM133161793
- Based on below discuss the issue of gender bias in compensation and the ways it can affect the development of a base pay structure. In your employment experience, have you noticed possible examples of gender bias in compensation?
- Apart from gender bias, what are the key pitfalls of job evaluations? How can you minimize their potential problems?
COMPENSATION TODAY 8.1
ALLEGED GENDER BIAS COSTS COMPANIES
In 1992, citing allegations of gender bias in Bell Canada's job evaluation system, the union representing Bell operators, the Communications, Energy, and Paperworkers' Union of Canada (CEP), lodged a complaint on behalf of its members with the Canadian Human Rights Commission (the body that is relevant to employers in the federal jurisdiction). The union's argument was that the operators (who were mostly female) were underpaid relative to the male employees of Bell Canada.
Bell Canada vehemently disagreed, and fought the suit tenaciously, right up to the Supreme Court of Canada, which ultimately rejected Bell's arguments. To settle the suit, the parties agreed to go through a mediation process recommended by the Canadian Human Rights Commission. In 2006, after 14 years of litigation, Bell and the CEP agreed to a settlement of a little over $104 million, to be divided among the 4766 Bell operators included in the suit.
In another case, technology giant Qualcomm Technologies agreed to settle a case for $19.5 million brought against it by several female employees. The looming lawsuit alleged that Qualcomm discriminated against women by paying them less and denying them the same opportunities as men. The case, settled before the lawsuit was formally filed, argued that women in science, technology, engineering, and math (STEM) positions at Qualcomm were not paid the same as men and had fewer promotion opportunities because of the firm's male-dominated culture. Furthermore, the case claimed that women hold less than 15 percent of senior management positions, and with mostly male managers doing the performance evaluations, women were disadvantaged. According to the claims, the company also rewarded a culture of working late and being available 24/7, which made working mothers and caregivers less competitive for promotions. As part of the agreement, Qualcomm agreed to implement policy changes and programs, including those related to pay and promotion, for women in STEM. Qualcomm also agreed to retain two independent consultants to make policy recommendations for an equitable workplace.
In a more recent case, a U.S. broker, Christine Carona, filed a complaint against her former employer, UBS Group, a Zurich-based bank. Christine previously supported customers that fell into "sudden wealth" from selling a business, divorce, or death. She also supported families in financially preparing for the cost of children with special needs.
Christine had reported that she was subjected to gender discrimination under her former employer. Not only did her boss call her and other women derogatory names, Christine alleged that the most valuable customers were given to male coworkers when brokers retired or left the company. Christine also alleged that the achievements of women working at the firm were downplayed. For example, when Christine and other women were given the award for the Forbes Top 200 Female Financial Advisors, they were prohibited from displaying that title in their email signatures. At the same time, their male coworkers were encouraged to do so. More so, the arbitrator found that the firm infringed on Christine's ability to grow her business and imposed rules that were disadvantageous specifically to her clients. The arbitration resulted in a US$1.5 million dollar win for Christine.