Tay Valley Township Media Release - Compensation and Pay Equity Review

Compensation and Pay Equity Review 

At a ‘Special’ meeting of Tay Valley Township Council on June 25, 2024, Council passed a motion authorizing the updating of the pay grid for non-unionized employees, retroactive to January 1st, 2024, and providing for a 3.5% cost of living allowance increase for 2025. Council also directed a consultant and the CAO/Clerk to negotiate with unionized employees regarding updating the pay grid applicable to them.

“This move is for two main reasons,” explained Reeve Rainer. “First, the Township will be compliant with the Ontario Pay Equity Act, regarding internal pay equity. Second, compensation for employees will be more competitive with similar rural municipalities, such as Drummond/North Elmsley and Rideau Lakes. Attracting and retaining experienced and talented employees is a widespread challenge in the municipal sector. The cost of recruitment is expensive and by ensuring that employees are compensated fairly assists in the retention of employees.”

To inform Council’s decision, the Township engaged a pay equity expert, Marianne Love, to undertake the review. Ms. Love, who has deep experience in the municipal sector, determined that Township employees were underpaid relative to employees in seven comparable municipalities, with greater deviation in some positions. Ms. Love also advised the Township to conduct a market review every three to four years, to inform any changes required to pay bands in the salary grid. The previous review was 16 years ago, in 2008.

The principles of fairness (internal equity), compliance (pay equity), competitiveness (market competitiveness) and sustainability and renewal (best practice compensation tools) were considered during this review.

“Council appreciates the cost implication of strengthening the Township’s pay equity,” said Reeve Rainer. “In the forthcoming 2025 budget development process, we will do everything we can to keep the levy increase as low as possible. In support of this, Council has agreed to maintain and to not increase the compensation of Council members, relative to comparable municipalities.”