Paid maternity leave

May 21, 2008, 8:41am,  159 views

A strong push is under way for the Federal Government to increase paid maternity leave for new mothers.

Democrats senator Natasha Stott Despoja is urging a model she says will give new mums 14 weeks of paid leave.

Unions want more than six months full paid maternity leave, partly funded by a business levy, a move employers claim could lead to workplace discrimination.

The Productivity Commission is currently taking submissions as part of an inquiry into the issue.

Senator Stott Despoja says her plan would cost taxpayers $591.6 million a year - compared to the $1.23 billion projected to be spent on the baby bonus.

Women would be paid at a rate pegged to the minimum wage, now about $522 per week before tax, she said.

Employers would be encouraged to pay more through a top up provision to medium and high-income earning mums.

Unions NSW s submission called for a levy on industry to jointly fund, with the government, a scheme to pay new mums full wage replacement over 28 weeks.

It says this is the period of time the World Health Organisation recommends a baby be breastfed and an Australian model of maternity leave must take that into account.

But the Australian Industry Group told the commission any move towards paid maternity leave must be solely government funded.

Chief executive Heather Ridout expressed support for a government-backed minimum wage-related scheme, plus the scrapping of the baby bonus.

Paid maternity leave is a community issue which should be funded by the government, Ms Ridout said, adding it would increase the employment and retention of women in the workforce.

Comment: Pregnancy is not a community issue or an employer issue; it’s a matter for families.

Labor has derided “middle class welfare” but is now considering extending financial support for new mothers and adding to the cost pressure on business.

Employers will be increasingly reluctant to hire young women if these proposal go ahead.