As a mother of three children and the owner/manager of a business I am obviously very interested in the debate relating to EU proposals concerning parental leave, which include the extension of maternity from the current statutory fourteen weeks to twenty weeks and the introduction of two weeks paternal leave.
I still recall clearly the first two weeks after the birth of my first child. I was obviously not in top shape physically, as any woman who has given birth will know. Furthermore my husband and I were both exhausted, swept off our feet by the constant demands of our newborn. With the second and third babies it was a little easier – if nothing else because we knew what to expect – however it was still not something that I could cope with alone. On the basis of my personal experience, therefore, I immediately conclude that enabling fathers to be home during those first weeks of their child’s life is a very good idea indeed.
The EU is also proposing to increase paid maternity leave from fourteen weeks to eighteen weeks, with the Women’s Rights and Gender Equality Committee (FEMM) led by MEP Edite Estrella pushing for a further extension of two weeks to twenty weeks. On the face of it this is also a good suggestion. The more time a mother can stay at home with her child, the better for both of them.
There is no way around it - the proposals are a good idea and I can find no way to fault them. In fact in my own company I have already gone beyond what is being proposed by the EU, giving mothers a full 26 weeks maternity leave and having arrangements in place for reduced hours, flexitime and even teleworking.
However it is important to point out that the fact that I agree with the maternity leave extension and the introduction of paternity leave does not mean that I agree that employers should pick up the tab.
The Malta Business Bureau (MBB) this week published a report that showed that increasing maternity leave from the 14 weeks to 20 weeks would potentially cost the economy €7.5 million worth of value added per annum - equivalent to 0.18% of GDP. Of this, the cost to private business would amount to €5.3 million worth of value added in a year - equivalent to 0.14% of private sector GDP. In addition, introducing two weeks of paternity leave would cost the economy €4.8 million in terms of value added in a year - equivalent to 0.12% of GDP. Of this, the cost to private business would be €3.7 million in a year in term of value added - equivalent to 0.1% of GDP.
I was astounded to read some of the comments posted under news items about the MBB report. It is clear that many people do not differentiate between the private sector and the Government department of social services, expecting businesses to shoulder a burden which frankly should not be their responsibility.
I agree that it is important to bolster the birth rate and I agree that investing in our children is an investment in our future. However Malta is practically the only EU member state where the cost of maternity leave is borne fully by the employer. That is why local businesses are concerned about the initiative. They are right, increasing maternity benefits will increase their costs and make them less competitive compared to their counterparts throughout the EU.
In other member states things are done in more equitable manner. Governments throughout the EU have set up various schemes that fund maternity leave costs through the national insurance fund, national public health funds, specific funds for maternity leave and unemployment funds. All these schemes have been created to ensure that the cost of nurturing babies is shared by all society and not just the hapless employer!
When preparing for this article I discussed the situation with Anna Borg, of the Malta Confederation of Women’s Organisations (MCW0). The MCWO is well aware of the anomaly in the way maternity benefits are financed throughout the EU – and in fact they published a press release stating that the “MCWO can appreciate the reaction of the Malta Business Bureau and the business community in Malta.”
The MCWO have been looking into the matter in earnest, and in fact they kindly provided me with invaluable information relating to how maternity leave is financed throughout the EU (for which I thank them).
Ultimately the onus is on the government to put its money where its mouth is on family values and supporting the family, and come up with a scheme to finance these measures. If we want TRUE equality in the workplace we need to set up a system where the cost of maternity leave is not associated solely with employing women. A baby is the product of a mother and a father - however the way things are at the moment, it is the company that employs the mother that picks up the tab for the baby. If this were to change, splitting the cost evenly per employee, this discrimination would end once and for all.
We now have an opportunity for Malta to change its system for the better – we should take a leaf out of the books of countries such as Slovenia, Cyprus, the Czech Republic, Estonia, Finland (and many more) where maternity benefits are viewed as part of public insurance, with employers and employees (both males and females) paying a part of their income every month towards a fund that is used for maternity (and paternity) handouts.
This would be a wonderful scenario because it would eliminate the burdens on businesses, while at the same time finally freeing women from the big Euro sign that hangs over their head every time they attend an employment interview.