What is Pay Equity?

Pay equity, also called comparable worth or fair pay, is a remedy for one type of wage discrimination against women and people of color. It tackles the type of discrimination that occurs when jobs filled predominantly by women and/or people of color are paid less than other jobs filled primarily by men that require similar levels of skill, effort, responsibility and working conditions.

In the late 1970s, pay equity emerged as one of the most pressing women’s rights issues, and AFSCME took the lead in winning higher pay. AFSCME members in San Jose, Calif., staged the first pay equity strike, and AFSCME members in Washington state reaped the benefits of the largest pay equity court settlement to date. Thousands of other AFSCME members benefited from over half a billion dollars in pay equity adjustments which have resulted from pay equity agreements at the bargaining table, in state and local legislatures, and through political action.

Many of these victories were won following a pay equity study of the workforce that identified systematic underpayment of jobs held primarily by women. Pay equity, however, can often be achieved more quickly, more easily, and less expensively without a full pay equity study. AFSCME's experience shows that there are many routes to success. Here are suggestions for winning and keeping fair pay:

• Raise the floor—Often the lowest paid classifications in a workforce are filled primarily by women and people of color. By eliminating the lowest pay grades, many employees will receive 
  fairer pay. In addition, this approach may set the stage for raising the pay of other underpaid classifications later. 
  
  
• Start small—Sometimes large pay equity studies are politically unpopular and take a long time to implement. Instead, consider targeting several underpaid classifications for equity increases or upgrades first and gradually include other classifications. 
  
  
• Bargain flat-dollar increases—If the union bargains for a cents-per-hour wage increase, rather than a percent increase, the lower paid classifications will get a larger raise. This bargaining strategy will help the lowest paid classes move up and will decrease the difference in pay between the lowest and highest paid employees. 
  
  
• Make the most of employer job evaluation studies—If you find out that the employer is conducting a job evaluation study, try to ensure that the study will address pay inequities. In particular, advocate for the following provisions:
  • use a bias-free job evaluation system;
  • analyze male and female employment patterns to determine if men and women are segregated in different jobs and if women’s jobs tend to be lower paid; 
  • reach an agreement with the employer that no jobs will be downgraded as a result of the study; 
  • establish an appeals process for employees who feel their jobs were incorrectly evaluated; and 
  • implement the study through collective bargaining.
    
    

• Implement previous studies—Sometimes employers conducted studies several years ago that showed inequities, but they never implemented the results. If you dust off the study and implement it now, significant equity can still be achieved. 
  
  
• “Piggy-back” on studies from other jurisdictions—You can use a shortcut to implementing pay equity by using the results of a job evaluation study from another jurisdiction and modifying it to address inequities in your workplace. 
  
  
• Start or join a Living Wage Campaign in your area—AFSCME-led coalitions in many parts of the country are succeeding in passing laws which establish minimum pay for employees of state or city contractors at a level high enough to provide a living wage. 
  
  
• Organize—Women who belong to unions make more than those who are unrepresented. Union-represented women earn 38 percent more than non-union women, and 6 percent more than non-union men. 
  
  
• Support the Fair Pay Act and the Paycheck Fairness Acts—Advocate in your community for these important pieces of legislation and ask your senators and representative to pass them. The National Committee on Pay Equity (NCPE), the only national organization devoted to pay equity, maintains a network of local activists who are working to win fair pay. Call NCPE at (703) 920-2010 to hook up with activists in your area. 
  
  
• Pass state or local pay equity legislation—Much of AFSCME’s success at the bargaining table has grown out of legislation calling for public employers to conduct pay equity studies or requiring jurisdictions to implement pay equity. Although many states have taken steps toward pay equity, only Minnesota has comprehensive legislation covering state and local government employees — so much remains to be done! 
  
  
• Keep up the good work—Once you've implemented pay equity, keep alert so that inequities don’t creep back in. Pay particular attention if the employer conducts a market study. Such a study could cause pay inequities in the private sector to move back into the public sector. Prior to bargaining or your local budget cycle, take another look at the pay plan and address any new inequities right away.