Women

HREOC releases maternity leave report

The Human Rights and Equal Opportunity Commission has released a report on maternity leave. The media summary is below. The full report is available on http://www.hreoc.gov.au

Valuing Parenthood: Options for paid maternity leave - Interim paper 2002 canvasses various options for implementing a national paid maternity leave scheme and invites further options. The paper does not make recommendations. However, what became clear during preparation of the paper is that many stakeholders oppose a national scheme of paid maternity leave funded entirely and directly by individual employers.

The Federal Government needs to take the lead on the debate over maternity leave for reasons discussed in the paper and highlighted briefly in this summary. The Sex Discrimination Commissioner calls on Government to advance this issue.

Towards Equality in the Workplace for Women
Although there has been significant progress in removing systemic discrimination in the labour force, women continue to be at a disadvantage relative to men in the workplace - in remuneration, appointment and promotion - because of their responsibilities as the primary bearers and carers of children.

The biological role of child bearing and the need for a temporary absence from the workforce places women at an economic disadvantage at the time of birth and later.

Women on average receive lower pay, are under-represented in management and over-represented in casual work. Women working full-time earn on average 84 cents in the male dollar (average weekly ordinary time earnings), compared to men working full-time. Adding part time and casual workers into this equation, the disparity grows, with women earning 66 cents in the male dollar. [1]

A national paid maternity leave scheme would go some way to addressing this disadvantage and compensating for the period of childbirth and time shortly after when women take time off work or reduce their labour force activity.

Currently, access to paid maternity leave depends on the type of organisation and the industry in which women work. Women in smaller organisations and the private sector are less likely to have paid maternity leave compared to those in large organisations and the public sector.

Maternity leave is generally restricted to long term, permanent employees. Industries with high proportions of women and casual workers, such as retail and hospitality, are generally less likely to offer paid maternity leave.

The Fertility Strike
In response to the demand on modern Australian families of having to combine work and family responsibilities many couples decide to delay childbirth while they carry out work and training commitments. Others decide not to have children at all.

Australia's fertility rate is 1.75 babies per woman. This is below the replacement rate of 2.1. It reflects a downward trend in births over the last century - from 3.5 in 1961; 2.9 in the early 1970s; 1.9 in 1980; and 1.9 in 1990.

The majority of mothers will at most have two children - three quarters of Australia's total birth rate is currently being accounted for by first and second births.

Currently 70.8% of women in prime child bearing years (25-34) participate in the labour force. A strong attachment to the labour force amongst this group means that having children is avoided, or delayed, with most women likely to have children between the ages of 30-34.

The lowest fertility levels are recorded amongst women with higher attachment to the labour force, higher income and greater educational attainment.

Economic and social factors mean that most women work part time or full time. However, women with young children or a number of children are less likely to be in the labour force. Maternity choices clearly have a direct bearing on employment.

While paid maternity leave alone will not necessarily alter the choices women make about having children or provide sufficient payment to compensate for years of financial dependency, paid maternity leave could provide necessary support for women who must remain in paid work.

For couples who save money to afford each child, a period of paid leave would enable them to bring forward their decision to have a child. It may also encourage some couples to have an additional child.

A national paid maternity leave scheme is a means of supporting modern Australian families.

Health and Welfare of Mothers and Newborn Children
Pregnancy, childbirth and the feeding schedule of a newborn child affect a woman's health.

The period of time necessary for recovery from childbirth will vary according to a woman's individual experience. The World Health Organization suggests that a minimum of 16 weeks absence from the workforce is necessary for a woman to recover from child birth and accommodate breastfeeding. However, some women return to work within 6 weeks of the birth, with no apparent detriment to their health.

There is a rapid decline in the number of women breastfeeding by the time the infant is six weeks old. Studies in the US and Australia suggest that there is a link between return to work and the cessation of breastfeeding.

The WHO, Australian government publications and community and professional groups in Australia including the AMA advocate breastfeeding for a newborn. They recognise breastfeeding as one of the most important contributions to infant health, including improved growth, immunity and development.

Paid maternity leave would support women who want to take time out of the workforce to establish and maintain breastfeeding. It would also assist women who plan to breastfeed their children beyond six weeks of age.

The purpose of paid maternity leave is not to enforce a period of leave on women but to ensure that financial concerns do not force women back to work before they recover from childbirth.

Benefits of Paid Maternity Leave
Potential benefits of paid maternity leave include:

compensating for the workplace disadvantage women experience due to child bearing and rearing;

ensuring financial concerns do not force women to return to work before they have recovered from childbirth;

assisting with the direct costs of having children, especially the increased costs faced at the time of the birth of a child;

encouraging women to participate in the labour force and promote their economic security by enabling them to retain skills and expertise and maintain income;

reducing attrition rates, particularly for women, and encouraging women who have had babies to maintain their attachment to the workforce (benefiting the employer by reducing retraining and staff replacement costs).
There is a substantial capital investment in education and training, requiring significant public funds. Women increasingly make up a large proportion of those being trained and educated. Current maternity arrangements do not enable women to derive the same level of return from their professional investment as men. Paid maternity leave reduces this loss by providing direct compensation and encouraging workforce attachment.

Many large Australian companies see the benefit of paid maternity leave which they use to attract and retain high quality staff.

Inevitably, paid maternity leave cannot meet these broad objectives alone. Paid maternity leave is just one of a suite of measures that must be provided to ensure that parents are able to manage their work and family obligations; that women in particular are not disadvantaged by their greater role in family responsibilities and that men are able to take their place as equal partners at home as well as work.

International Comparisons
Australia stands almost alone on the world stage in its failure to provide paid maternity leave.

Eighteen, soon to be 19, of Australia's top 20 trading partners provide some form of paid maternity leave. In 14 of these countries, paid leave is a statutory entitlement;

All OECD countries provide paid maternity leave except for Australia and the US and New Zealand (until 1 July 2002). Most OECD paid maternity leave schemes are funded by social security or social insurance funds. The amount of paid leave offered through these schemes varies from 55% of average weekly insurable earnings in Canada to 100 percent of the basic daily wage in a number of European countries including France. The duration of paid leave under these schemes varies from eight weeks (e.g. Switzerland) to 450 days (eg Sweden). In Europe social insurance schemes are the most common way of funding paid maternity leave. In Sweden paid maternity leave is funded by an insurance scheme to which employers, employees and government contribute;

The New Zealand plan for paid parental leave, to be introduced on 1 July 2002 provides 12 weeks' paid leave to eligible women and men. Up to half of female wage and salary earners will receive 80 per cent of their earnings and about one third 100 per cent of previous earnings. The period of paid leave may be taken by a natural or adoptive parent and can be shared with a spouse or same sex partner where they would have been eligible for parental leave. Employees will remain eligible for 52 weeks' unpaid leave;

Eighteen OECD countries provide paternity or family leave, and in 13 of these leave is paid. In most cases either parent can take this leave on top of a woman's right to maternity leave.;

International instruments, such as CEDAW and the International Labour Organization's Maternity Protection Convention (ILO 183) recognise paid maternity leave as a specific measure that fulfils State obligations to provide women with equal employment rights. 158 of CEDAW's 163 signatories provide paid maternity leave. Only Australia, Lesotho, New Zealand (until 1 July 2002) Papua New Guinea, Swaziland and the USA do not.
Funding Options
Paid maternity leave may be financed by government, employers, employees or a combination of each.

(Note: The International Labour Organisation does not support a funding model for paid maternity leave which makes employers individually and directly liable for payments to employees unless such an arrangement is negotiated at the national level)
The Federal Government provides a range of income support payments to families to assist with the costs of raising children, including newborns and provides other payments to parents through allowances and tax benefits. Paid maternity leave is not a replacement for these existing payments.

The paper sets out five models for funding paid maternity leave. Other options are possible and submissions exploring other options are welcome.

A government funded universal payment: A non-means tested payment through the social security system to women in work at the time of birth and a maternity assistance payment to women who are unemployed or not in the labour force at the time of birth.

A government funded employment based model: A flat payment would be made to women directly from the government through the tax or social security system or to employees by employers who would be reimbursed by the government.

A social insurance/superannuation style scheme: Maternity leave would be paid from a fund to which employers, employees and government contribute.

An employer levy: Employers would be required to pay a levy based on total salaries paid by the organisation in order to avoid disincentives to employ women. Small business, for example those with less than 20 employees, could possibly be exempt from the levy.

An individual employer funded payment: Employers would be required by legislation to provide paid maternity leave to eligible female employees. It could be a top-up payment for women with above average weekly earnings or be paid in conjunction with a government funded employment based model or a government funded universal payment.

© 2001 Community & Public Sector Union - State Public Services Federation (CPSU-SPSF) - National Office

http://www.cpsu-spsf.asn.au/latest_news/women/20020418_maternity.html
Last Modified: 15 Nov 2005