by Richard Gleeson
Northern News Services

NNSL (Mar 09/98) - At the heart of the pay equity dispute between government and the Union of Northern Workers is a fundamental disagreement about the method of defining equality.

The government maintains that in adopting and implementing a system of job classification known as the Hay Plan, it has fulfilled its obligation to pay its employees on the basis of responsibility, experience and merit, rather than sex.

Herb Hunt, director of labor relations for the financial management board secretariat, said the government arranged a three-day training session on the Hay system for the union when it decided to adopt it.

"The Hay system is being used by the federal government, in Manitoba, Ontario, Newfoundland and in the United States," said Hunt. "It's the most popular evaluation system in the country."

The union's estimate of what the government owes present and past employees in retroactive pay has been tagged at more than $100 million. Payment goes back a decade, to the time the pay equity issue arose.

The government, on the other hand, has offered a total of $40 million. FMB comptroller general Lou Voytilla said the package includes $25 million to address the complaint and $9 million to correct inequities identified by the Hay system.

Contract negotiations between the union and the government are continuing under a cloak of secrecy.

Last week the government proposed a new pay plan based on the new classification system.

Pay equity negotiations were broke off last month on orders from the mediator, said the government.

Hunt said the government is determined to avoid a costly and lengthy Canadian Human Rights Tribunal hearing.

"It would take two or three years to conclude a tribunal hearing," said Hunt. "The cost of litigation versus the cost of negotiation are significantly different."

"We're confident the people at the bargaining table are capable and will work together to get this resolved," he added.