Employment Equity Act: Annual Report 2014

Message from the Minister

The Honourable Dr K. Kellie Leitch,
Canada's Labour Minister

The Employment Equity Act: Annual Report 2014 outlines progress made by federally regulated private-sector employers to achieve equality and fairness in the workplace.

All Canadians have the right to work in an environment where opportunities are based on skills and abilities. That’s why it’s important to remove barriers to employment and allow all Canadians to fully participate in the labour market.

By promoting the equitable representation of women, Aboriginal peoples, people with disabilities, and members of visible minorities in federally regulated workplaces, the Employment Equity Act helps employers identify and address workplace barriers by implementing fair practices and policies.

Our efforts are making a difference. The 2014 report indicates that the representation of all four designated groups has increased in the past year. Ensuring that the representation of these groups reflects their labour market availability remains a priority.

To this end, the Labour Program recently launched the Workplace Opportunities: Removing Barriers to Equity grants and contributions program. It is designed to support federally regulated private-sector employers covered by the Employment Equity Act in their efforts to improve designated group representation through partnerships and industry-tailored strategies.

Our Government will continue to work with employers, the province and territories, and other stakeholders to eliminate barriers to employment and give all Canadians access to the same opportunities. It is our duty to keep Canadian workplaces fair, safe and productive.

A workforce that reflects the diversity of our country will grow the economy and ensure the long-term prosperity for all Canadians.

The Honourable Dr K. Kellie Leitch
P.C. O. Ont., M.P.
Minister of Labour and Minister of Status of Women

Introduction

“The purpose of this Act is to achieve equality in the workplace so that no person shall be denied employment opportunities or benefits for reasons unrelated to ability and, in the fulfilment of that goal, to correct the conditions of disadvantage in employment experienced by women, Aboriginal peoples, persons with disabilities and members of visible minorities by giving effect to the principle that employment equity means more than treating persons in the same way but also requires special measures and the accommodation of differences.”

- Section 2 of the Employment Equity Act

The Minister of Labour is mandated by the Employment Equity Act (the Act) to submit a report to Parliament describing the status of employment equity in the federally regulated private sector^{Footnote 1}. The Act requires employers in the federally regulated private sector with a workforce of 100 employees or more to file a report with the Minister by June 1 every year. The Employment Equity Act: Annual Report 2014 consolidates the information submitted by employers on June 1, 2014 and highlights the progress that employers have made during the 2013 calendar year in achieving an equitable workforce for the four designated groups: women, Aboriginal peoples, persons with disabilities and members of visible minorities.

The most common indicator of progress is the representation rate. The representation of designated groups is compared to their labour market availability (LMA). Progress has been made when the gap between a group’s representation and its LMA narrows, or when the group’s representation exceeds its LMA.

About the data

This year marks the release of LMA data based on the most recent census and post-censual surveys. The LMA data for women, Aboriginal peoples and members of visible minorities is obtained from Statistics Canada’s 2011 National Household Survey (NHS). Data for persons with disabilities is obtained from the 2012 Canadian Survey on Disability (CSD), also conducted by Statistics Canada.

The 2011 NHS and 2012 CSD show that LMA has increased for all groups except persons with disabilities. The change in LMA for each designated group is indicated in the Chart.

Previous and most recent LMA for each designated group

Despite the release of the new LMA data, there remains a time lag in measuring representation gaps because the 2013 representation is being compared to 2011 NHS and 2012 CSD availability data.

Section 1 – Year in review

In 2013, the representation of all four designated groups increased in the federally regulated private sector compared to 2012. Employers continue to make progress towards achieving a fully representative^{Footnote 2} workforce.

• Members of visible minorities achieved a representation rate that continued to surpass their LMA. The representation rates for the other designated groups – women, Aboriginal peoples and persons with disabilities – remained below their respective LMA, but were higher than the previous year.
• The representation of women increased from 40.9% in 2012 to 41.6% in 2013 and remained below their LMA of 48.2%. This represents an LMA attainment rate of 86.3%, a shortfall of 13.7%.
• The representation of Aboriginal peoples reached 2.1% in 2013 after remaining at 2.0% during the two previous years. This represents an attainment rate of 60.0%, a shortfall of 40.0%.
• The representation of persons with disabilities increased to 2.7% in 2013 from 2.6% in 2012, a rate that had remained unchanged since 2010. This represents an attainment rate of 55.1%, the lowest attainment rate for all designated groups.
• The representation of members of visible minorities increased a full percentage point from 2012 to 2013, reaching 19.6%. This surpasses the group’s most recent LMA of 17.8% (LMA in 2006 was 15.3%). Members of visible minorities continue to be the only designated group in the federally regulated private sector whose overall representation surpasses its LMA.

Chart 1: Progress in representation over time in the federally regulated private sector

Sectors

The federally regulated private sector is made up of four sectors:

Banking

Includes all major Canadian banks.

Communications

Comprises radio and television broadcasting, telecommunications and postal and courier services.

Transportation

Consists of employers in the air, rail, bus and water transportation industries; inter-provincial trucking; pipelines; and investigation and security services.

'Other'

Encompasses a diverse group of employers working in industries such as nuclear power generation; warehousing and storage; metal ore mining; professional, scientific and technical services; finance; construction management; food, wood, chemical and equipment manufacturing; wholesale trade; waste management; arts, entertainment and recreation; and public administration.

Federally regulated private sector: Overall workforce

A total of 507 employers filed a report with the Minister of Labour for the 2013 calendar year. Together, these employers had a total of 738,053 employees across Canada, representing about 4.1% of the Canadian workforce.

The total number of employers decreased by nine from 2012 to 2013: three in the communications sector, five in the transportation sector and one in the ‘other’ sector^{Footnote 3}. The transportation sector continued to have the most employers (342 or 67.5%).

Overall, the federally regulated private sector saw a net decrease of 34,427 employees over the previous year. The banking sector is the only sector to have seen a workforce increase (656 employees). The transportation sector had the largest reduction in employees with a decrease of 31,826 employees (a 12.5% reduction from the previous year).

Most workers in the federally regulated private sector are evenly distributed among the banking (30.9%), communications (31.3%) and transportation (30.1%) sectors. The smallest sector, ‘other’, employs 7.7% of the federally regulated private-sector workforce.

Table 1 shows the federally regulated private-sector workforce composition by sector for the 2013 calendar year.

Section 2 – Designated groups

Chart 2: Representation and availability of women in the federally regulated private sector

Table 3 provides details on the employment situation of women in overall and in each sector of the federally regulated private sector.

• There was a net decrease of 34,427 employees (4.5%) in the federally regulated private sector from 2012 to 2013. Of these employees, 9,167 were women.
  • The number of women declined by 9.3% in the transportation sector, by 5.3% in the ‘other’ sector, by 1.4% in the banking sector and by 0.04% in the communications sector.
• The representation of women increased overall from 40.9% in 2012 to 41.6% in 2013.
  • The representation of women increased in the transportation sector, decreased in the banking sector and remained unchanged in the communications and ‘other’ sectors.
• The largest proportion of women in the federally regulated private sector continued to be in the banking sector (46.6%). This is followed by the communications, transportation and 'other' sectors with 28.3%, 19.5% and 5.6% respectively.
• All sectors combined, more women left the federally regulated private-sector workforce than entered it.
  • Only the transportation sector reported a positive net effect between the number of hires and terminations^{Footnote 4}, meaning that more women entered the workforce in this sector than left it.
  • The banking, communications and ‘other’ sectors reported shares of terminations that exceeded shares of hires.
• The transportation and ‘other’ sectors reported shares of promotions for women that exceeded their representation.

A higher proportion of women in permanent full-time positions earned $60,000 or more in 2013 than in 2012. Of women in permanent full-time positions, 40.3% remained in the lowest salary range (below $50,000) compared to 43.4% in 2012. In contrast, 25.0% of men were in this salary range in 2013 compared to 29.3% in 2012. Most men (55.6%) earned $60,000 or more, while only 38.7% of women were in that salary range.

Aboriginal peoples

The representation of Aboriginal peoples has increased from 2.0% in 2012 to 2.1% in 2013, achieving 60.0% of LMA. LMA for Aboriginal peoples is 3.5%.

Chart 3: Representation and availability of aboriginal peoples in the federally regulated private sector

Table 5 provides details on the employment situation of Aboriginal peoples overall and in each of the four sectors comprising the federally regulated private sector.

• Similar to the net decrease in the number of employees in the federally regulated private sector from 2012 to 2013, the total number of Aboriginal employees also decreased by 109 (0.7%).
  • At the sector level, the number of Aboriginal employees decreased only in the transportation sector, by 233 (3.5%). Their numbers increased in the banking, communications and ‘other’ sectors.
• The representation of Aboriginal peoples continues to be highest in the ‘other’ and transportation sectors (4.1% and 2.9% respectively). Representation increased by 0.3 percentage points in each of these two sectors, while remaining steady in the banking (1.3%) and communications (1.7%) sectors.
• The largest proportion of Aboriginal peoples in the federally regulated private sector is in the transportation sector (41.2%).
• The ‘other’ sector has the smallest proportion of Aboriginal peoples (14.9%), yet is the only sector to have achieved a representation level that exceeded LMA (4.1% representation compared to 3.5% LMA).
• The ‘other’ sector reported shares of hires that surpassed LMA and that also exceeded shares of terminations. This means that Aboriginal peoples are being hired at an equitable level and are entering the sector’s workforce at a higher rate than they are leaving it.
• Each of the sectors reported that shares of promotions for Aboriginal peoples are at least equal to their internal representation.

A higher proportion of Aboriginal peoples in permanent full-time positions earned $60,000 or more in 2013 than in 2012. However, the proportion of Aboriginal men and women in this salary range continues to be lower than all men and all women respectively. Aboriginal women in particular are much less likely (29.2%) to earn $60,000 or more compared to Aboriginal men (51.2%) and to all women (38.7%). As is the case for all women, the largest proportion of Aboriginal women (49.4%) earn salaries below $50,000.

Persons with disabilities

In 2013, the representation of persons with disabilities increased to 2.7% after remaining at 2.6% for the previous three years. This represents an attainment rate of 55.1% of the group’s 4.9% LMA.

Chart 4: Representation and availability of persons with disabilities in the federally regulated private sector

Table 7 provides details on the employment situation of persons with disabilities overall and in each of the four sectors comprising the federally regulated private sector.

• The total number of persons with disabilities in the federally regulated private sector decreased by 179 (0.9%) from 2012 to 2013.
  • The number of persons with disabilities decreased in three of the sectors and showed a slight increase in the banking sector by 28 (0.3%).
• The representation of persons with disabilities increased in the transportation and ‘other’ sectors. The banking and communications sectors maintained their representation levels from the previous year.
• The largest proportion of persons with disabilities in the federally regulated private sector was found in the banking sector (43.5%). This is followed by the communications, transportation and ‘other’ sectors with 26.5%, 22.6% and 7.4% respectively.
• The shares of terminations for persons with disabilities (overall and in each sector) exceeded their shares of hires. This means that persons with disabilities are leaving the workforce at a higher rate than they are entering it.
• Overall, as well as in each sector, the share of hires for persons with disabilities is well below their LMA of 4.9%.
  • The banking sector reported the highest share of hires at 2.4%. This is followed by the ‘other’ sector with a share of 1.4%, and the communications and transportation sectors with shares of 1.3% each.
• All sectors have reported that shares of promotions for persons with disabilities are below their internal representation.

A higher proportion of persons with disabilities in permanent full-time positions earned $60,000 or more in 2013 than in 2012. The proportion of men with disabilities earning a salary of $60,000 or more increased from 48.9% to 51.2%; the proportion of women with disabilities with earnings in that range increased from 32.5% to 34.3%. Similar to all men and all women, men with disabilities fare better than women with disabilities: the highest proportion of men with disabilities is in the top salary range, while the highest proportion of women with disabilities is in the lowest salary range.

Members of visible minorities

From 2012 to 2013, the representation of members of visible minorities has increased a full percentage point to 19.6%, surpassing its LMA of 17.8%. Members of visible minorities are the only designated group to have achieved a representation level that is above their LMA.

Chart 5: Representation and availability of members of visible minorities in the federally regulated private sector

Table 9 provides details on the employment situation of members of visible minorities overall and in each of the four sectors comprising the federally regulated private sector.

• Members of visible minorities are the only designated group whose number increased (by 0.4% or 520 people) in spite of the overall workforce decrease in the federally regulated private sector.
  • The transportation sector is the only sector that reported a decrease in the number of members of visible minorities employed compared to 2012. This decrease (12.3%) is comparable to the decrease in the overall transportation sector’s workforce (12.5%).
• Only the banking sector has achieved a workforce representation of members of visible minorities above the group’s LMA (29.6% representation compared to 17.8% LMA).
  • With the release of the most recent LMA estimates, the communications sector is 0.1 percentage points away from reaching LMA, reporting a representation of 17.7% (an increase of 0.6 percentage points from the previous year).
  • The representation rate of members of visible minorities has remained the same in the transportation sector (13.4%) and increased from 10.7% to 11.4% in the ‘other’ sector.
• The largest proportion of members of visible minorities in the federally regulated private sector continued to be in the banking sector (46.7%). This is followed by the communications, transportation and ‘other’ sectors with 28.3%, 20.6% and 4.4%, respectively.
• All sectors reported that shares of hires for members of visible minorities are higher than their shares of terminations. This means that members of visible minorities are entering the workforce at a greater rate than they are leaving it.
  • The banking, communications and transportation sectors reported recruitment levels that are at least equal to the group’s LMA.
• All sectors reported shares of promotions that are at least equal to their representation of members of visible minorities.

Conclusion

Each year, the Employment Equity Act Annual Report presents the progress made by federally regulated private-sector employers in achieving employment equity. The report highlights the representation of each designated group as well as other indicators of equity such as salary and shares of hires, promotions and terminations.

The 2014 Employment Equity Act Annual Report indicates that progress is being made but more work needs to be done. From 2012 to 2013, the representation of all four designated groups increased in the federally regulated private sector – a trend that has not been observed since 2001.

Building diverse and inclusive workplaces where each person is valued for their skills and contributions will bring benefits to individuals and their families, to employers, and to the Canadian workforce as a whole. Employers are encouraged to continue their efforts to eliminate barriers to the recruitment, promotion and retention of under-represented groups and contribute to the creation of safe, fair and productive workplaces for all Canadians.

Appendix A

Appendix B: Technical notes

Appendix A - Employment Equity Act: Annual report 2014 - Table A

* Source: Statistics Canada, 2011 National Household Survey (NHS) and 2012 Canadian Survey on Disability (CSD).

Appendix A - Employment Equity Act: Annual Report 2014 - Table B

* Source: Statistics Canada, 2011 NHS and 2012 CSD.

Appendix A - Employment Equity Act: Annual report 2014 - Table C

Appendix A - Employment Equity Act: Annual report 2014 - Table D^{Footnote 7}

Appendix A - Employment Equity Act: Annual report 2014 - Table E

Appendix A - Employment Equity Act: Annual Report 2014 - Table F