Canadian Lawyer InHouse

9 CANADIANLAWYERMAG.COM/INHOUSE MAY/JUNE 2018 A roundup of legal department news and trends process — not wage parity — became the main demand and rallying cry for LANEQ members after their collective agreement expired in March 2015. The rejection of five government offers and counter-offers led to an 84-per-cent vote in favour of the strike that began on Oct. 12, 2016. Despite widespread public support from Quebec's legal community and a mid-strike vote in which they rejected the government's final offer by a whopping 97 per cent, the strik- ing lawyers emptied their $4-million strike fund, took out an $8-million loan (which is currently being repaid through an increase in union dues to three per cent from 0.75 per cent of members' salaries) and dropped strike pay to zero from the 60 per cent of members' weekly salaries paid at the start of the strike. But the government tabled its back-to- work legislation and brought in the special law that imposed a 105-day negotiating and mediation period on both sides — but notably excluded the issue of negotiation mechanisms from being discussed. Not surprisingly, those discussions failed and the Quebec government last summer imposed the first and lowest of the formal offers it made to LANEQ — a 5.25-per- cent increase over five years. IH Wage gap narrowing for in-house A ccording to the "2018 In-House Counsel Compensation & Career Survey Results" done in partnership with the CCCA, while the wage gap has been reduced to 11 per cent from 15 per cent in 2016, the survey shows that when compared to men in the same roles in the profession, women still earn less and the largest gaps are seen at higher wage levels. "It's quite consistent with what we're see- ing occur in the market," says Dal Bhathal, managing partner with recruitment firm The Counsel Network. As more respondents this year came from the lower salary range, the byproduct is that it caused a slight drop in the average base salary to $163,000 in 2018 from $165,000 in 2016. As the junior base of respondents increases, the wage gap is not going to be as great. For the first time, female participants out- numbered males (51 per cent female com- pared to 48 per cent male). In 2018, the aver- age male base salary stands at $173,000, which is $19,000 higher than the average female base salary of $154,000. The gap narrowed because the male mean salary has decreased while the female mean salary has increased. However, 13 per cent of males have a mean salary of $180,000 to $200,000, while only eight per cent of women receive this level of pay. And 26 per cent of men earn $200,000 or more, compared to 15 per cent of women. The survey found: "Women are paid less than men at all job role levels." One factor at play that explains part of the discrepancy between males and females relates to an analysis of gender and sector. A higher percentage of females are in-house counsel for government, Crown corporations and not- for-profits. In comparison, a slightly higher percentage of males are employed by privately owned and publicly quoted companies. The highest average base salaries are found in the oil and gas sector at $196,000, resourc- es/mining/forestry at $193,000, construc- tion at $183,000, pharmaceuticals/medical at $177,000, retail/hospitality at $173,000, real estate at $172,000 and manufacturing/auto/ aerospace industries at $165,000. Pharmaceuticals/medical and oil and gas saw the largest gains in annual base salaries, up $26,000 and $15,000, respectively. Both Ontario and Alberta report average base salaries above the national average, con- sistent with results in 2016. However, base salaries in Alberta, when compared to the national average, have dropped over the past two study periods. The big drop occured in Edmonton. Average salaries in Atlantic and Central Canada continue to lag behind the national average, according to the survey. Overall, the survey did not find a decrease in base salaries across the country, but the trend to recruit more junior lawyers in-house is consistent with what Bhathal says she is see- ing in the market. The 2018 results show that 40 per cent of this year's respondents had less than 10 years of experience compared to 30 per cent in 2016. And the longer the period of time in private practice, the higher the compensation is likely to be. It used to be that in-house departments re- quired a minimum of four or five years experi- ence and that is being pushed down to one to three years experience. "What we're seeing is that legal depart- ments are growing and when they are look- ing to add lawyers as they grow they are hiring more and more junior lawyers," says Bhathal. "It used to be the requirement was four or five years experience minimum. That's being pushed down now to two or three years. As that is happening, we find that the [gender wage] gap at the junior level is not as great as at the senior level." So, although the gap is closing, Bhathal says, the big gap at the top remains and it seems little is being done to address that disparity. "There is this huge issue where you've got the gap at the senior end for work that is equivalent. That gap is still occurring and the respondent pool of candidates at the senior end is more men than women," she says. "Until we see all these junior people funnel through, and provided females are exposed to the same opportunities along the way, it's go- ing to keep occurring." At the same time, comparing positions can be difficult as, at the senior end, positions for lawyers can vary and the roles and responsi- bilities according to title vary. Financial services and insurance compa- nies continue to be the sector most repre- sented by in-house counsel, followed by oil and gas and government. The survey was sent to about 8,500 in- house counsel on Oct. 4, 2017. A total of 904 respondents took part, representing a re- sponse rate of 11 per cent. IH Until we see all these junior people funnel through, and provided females are exposed to the same opportunities along the way, it's going to keep occurring.

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