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| The case for generous parental leave | |
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| Last week, The Australian reported that the country’s four major banks are strong opponents of the Coalition’s paid parental leave scheme. They’re among the country's biggest companies and, should Tony Abbott be elected prime minister, they will be paying a levy to fund the scheme. The policy, like no other in the federal space, is dividing supporters and opponents along peculiar lines. | Last week, The Australian reported that the country’s four major banks are strong opponents of the Coalition’s paid parental leave scheme. They’re among the country's biggest companies and, should Tony Abbott be elected prime minister, they will be paying a levy to fund the scheme. The policy, like no other in the federal space, is dividing supporters and opponents along peculiar lines. |
| The big end of town, together with many in the Coalition, are putting pressure on Abbott to drop the scheme. On the other side, the Labor party is in the awkward position of opposing a scheme that would introduce a more generous entitlement for working women. | The big end of town, together with many in the Coalition, are putting pressure on Abbott to drop the scheme. On the other side, the Labor party is in the awkward position of opposing a scheme that would introduce a more generous entitlement for working women. |
| The Labor government introduced the country’s first universal paid parental leave scheme back in 2009, and now provides paid leave for up to 18 weeks at minimum wage. I had my first child in 2005, several years before the scheme was introduced, but I was lucky enough to receive paid maternity leave. Back then, mothers like me with high salaries and secure, professional jobs tended to negotiate leave with our employers. In fact, ABS data from that time shows roughly 70% of mothers earning $1,800 per week had access to paid maternity leave, while less than 25% of mothers earning under $400 per week enjoyed the same entitlement. Low income mothers were just as exhausted as me and their babies just as demanding as mine, but they were missing out. It was grossly unfair. | The Labor government introduced the country’s first universal paid parental leave scheme back in 2009, and now provides paid leave for up to 18 weeks at minimum wage. I had my first child in 2005, several years before the scheme was introduced, but I was lucky enough to receive paid maternity leave. Back then, mothers like me with high salaries and secure, professional jobs tended to negotiate leave with our employers. In fact, ABS data from that time shows roughly 70% of mothers earning $1,800 per week had access to paid maternity leave, while less than 25% of mothers earning under $400 per week enjoyed the same entitlement. Low income mothers were just as exhausted as me and their babies just as demanding as mine, but they were missing out. It was grossly unfair. |
| The introduction of a universal scheme in this country was about helping those women and their babies catch up to the rest of us. For one to now argue, when advocating for Abbott’s scheme, that what is most needed by mothers is to transform the entitlement so that the greater your income the greater the amount you receive requires tricky lines. Just ask Abbott. | The introduction of a universal scheme in this country was about helping those women and their babies catch up to the rest of us. For one to now argue, when advocating for Abbott’s scheme, that what is most needed by mothers is to transform the entitlement so that the greater your income the greater the amount you receive requires tricky lines. Just ask Abbott. |
| Even economics writer Jessica Irvine floundered: “But why pay wealthy women more than poorer women for performing essentially the same act of raising a child?", she asked. "High income earning women embody a lot of skills and know how that boosts not only their own economic productivity but that of their children. Studies show that the children of highly educated women have better income prospects themselves.” | Even economics writer Jessica Irvine floundered: “But why pay wealthy women more than poorer women for performing essentially the same act of raising a child?", she asked. "High income earning women embody a lot of skills and know how that boosts not only their own economic productivity but that of their children. Studies show that the children of highly educated women have better income prospects themselves.” |
| That’s nice, but the reason children with wealthier mothers perform better isn’t good breeding – it is because of the advantages afforded by wealth. If anything, this is an argument for financial assistance for children of poor families, not wealthy ones. Women in rural areas are among those more likely to become low income parents, which is why some National Party members are also troubled by Abbott’s scheme. | That’s nice, but the reason children with wealthier mothers perform better isn’t good breeding – it is because of the advantages afforded by wealth. If anything, this is an argument for financial assistance for children of poor families, not wealthy ones. Women in rural areas are among those more likely to become low income parents, which is why some National Party members are also troubled by Abbott’s scheme. |
| There is also a greater good with generous paid parental leave. It keeps women attached to the workforce. As a nation, it makes economic sense to support generous paid parental leave for everyone because it fosters growth, generates tax revenue and reduces retirement welfare expenditure. | There is also a greater good with generous paid parental leave. It keeps women attached to the workforce. As a nation, it makes economic sense to support generous paid parental leave for everyone because it fosters growth, generates tax revenue and reduces retirement welfare expenditure. |
| Not only that, but women who stay around long enough to reach leadership positions gain the power to make policy changes that can improve the lives of women with less advantage. Only if you’ve felt the anguish yourself - of a meeting running so late that you missed the chance to see your sick baby before the nanny put him to sleep for the night - do you push hard for earlier meetings. And only then is it possible for the secretaries, who lack the power to change things but who also attend your meetings, to leave in time to see their babies. | Not only that, but women who stay around long enough to reach leadership positions gain the power to make policy changes that can improve the lives of women with less advantage. Only if you’ve felt the anguish yourself - of a meeting running so late that you missed the chance to see your sick baby before the nanny put him to sleep for the night - do you push hard for earlier meetings. And only then is it possible for the secretaries, who lack the power to change things but who also attend your meetings, to leave in time to see their babies. |
| Resources and goodwill for parents are finite in a federal budget - you muster it for one initiative at the expense of another. You can then forgive women struggling in low pay jobs who think focusing on the advancement of the most advantaged women and investing in this kind of trickle-down feminism is not what would most benefit their working lives. What these mothers need right now is affordable, high quality childcare and workplace flexibility. | Resources and goodwill for parents are finite in a federal budget - you muster it for one initiative at the expense of another. You can then forgive women struggling in low pay jobs who think focusing on the advancement of the most advantaged women and investing in this kind of trickle-down feminism is not what would most benefit their working lives. What these mothers need right now is affordable, high quality childcare and workplace flexibility. |
| I have little doubt that the “women of calibre” Abbott is concerned with also desperately crave flexibility. Six months leave with a newborn is valuable to a senior woman in a law firm, but if returning to work means nothing less than a 60 hour work week, then workplace flexibility is what you really want for the long haul. For that matter, if the purpose of Abbott’s scheme is retention of women in the workforce, then its focus may be misplaced. Generally speaking, higher education is associated with a greater chance of returning to work. The most vulnerable are those with low levels of education and impermanent employment. Rewarding the parents most likely to return to work may reinforce inequality. | I have little doubt that the “women of calibre” Abbott is concerned with also desperately crave flexibility. Six months leave with a newborn is valuable to a senior woman in a law firm, but if returning to work means nothing less than a 60 hour work week, then workplace flexibility is what you really want for the long haul. For that matter, if the purpose of Abbott’s scheme is retention of women in the workforce, then its focus may be misplaced. Generally speaking, higher education is associated with a greater chance of returning to work. The most vulnerable are those with low levels of education and impermanent employment. Rewarding the parents most likely to return to work may reinforce inequality. |
| If motherhood is such a political issue, it is a shame there isn’t more competition between the two major parties with the coming election. The Labor government’s increase to the childcare rebate, the boost to family payments for teenagers and the Schoolkids Bonus all help, but like Abbott’s parental leave scheme they’re somewhat playing at the margins. | If motherhood is such a political issue, it is a shame there isn’t more competition between the two major parties with the coming election. The Labor government’s increase to the childcare rebate, the boost to family payments for teenagers and the Schoolkids Bonus all help, but like Abbott’s parental leave scheme they’re somewhat playing at the margins. |
| When the banking sector’s opposition to the scheme was reported last week, it was pointed out that banks will pass costs on to customers, threatening increased mortgage repayments. None of this suggest taking women’s hardships seriously. | When the banking sector’s opposition to the scheme was reported last week, it was pointed out that banks will pass costs on to customers, threatening increased mortgage repayments. None of this suggest taking women’s hardships seriously. |
| As the debate around Abbott’s parental leave scheme intensifies, it is worth remembering this: there are flow-on costs, but also wider benefits to be drawn from helping families. In terms of global trends, leave for parental needs isn’t associated with being economically uncompetitive. In fact, it is precisely the opposite. | As the debate around Abbott’s parental leave scheme intensifies, it is worth remembering this: there are flow-on costs, but also wider benefits to be drawn from helping families. In terms of global trends, leave for parental needs isn’t associated with being economically uncompetitive. In fact, it is precisely the opposite. |