XYZ Co is a hair product company that has a factory (73 employees) and office (20 employees) in Guelph and a distribution outlet in Scarborough (9 employees). The factory employees are unionized; all of the other employees are non-union. XYZ Co has been in business since 1987.

1. Is this employer covered by Ontario's Pay Equity Act? Explain your answer.
2. Assuming that the employer is covered by the Pay Equity Act, what is the greatest number of establishments that this employer can have under the legislation? How many pay equity plans should it have?