AWU welcomes paid parental leave introduction

13 May 2009

Unions have welcomed the historic introduction of a universal, government-funded paid maternity leave scheme covering the majority of Australian women and their families.

"The campaign to win this essential piece of social infrastructure has taken 30 long years," AWU National Secretary, Paul Howes, said.

"This is a major achievement by union members, for the thousands of women and men who have worked so hard to bring this scheme to fruition.

Parental leave at a crucial time

Paul Howes praised the Rudd Government for delivering on this historic union demand for workers to have parental leave to support their families at a crucial time in their lives.

"The Rudd Government has rightly concluded that this money will go directly into spending on the necessities that go with having a new baby at a time when most families have been reduced to living on one wage."

Improves job security for working women

" This decision also recognises that this paid leave is good for business and the economy because it will help keep skilled, experienced female staff attached to the workforce," Paul Howes sai.

This government-funded scheme will provide the primary carer with 18 weeks post-natal leave, paid at the adult federal minimum wage (currently $543.78 per week).

Investing in improved workforce participation

The cost of the scheme - approximately $260 million per annum - is a vital investment in improved productivity and workforce participation.

The scheme will not commence until 1 January 2011, giving the community and businesses time to prepare.

Paid Parental Leave will be delivered in a responsible and sustainable way which takes into account the impacts of the global recession.

Australia and USA were last hold-outs against paid parental leave

The scheme will come into effect when the economy is expected to be recovering and the economic outlook improved.

Currently, Australia is one of just two OECD countries without a national statutory paid parental leave scheme, along with the United States.

This parental leave scheme will boost workforce participation which will be essential in meeting the economic and social challenges of an ageing Australian population.

Paid leave at a vital time for newborns

Paid Parental Leave will help Australian families find a better balance between work and caring responsibilities and will allow mothers to spend vital time with their newborn babies.

The scheme is a huge step forward for all mothers and especially for low and middle-income earners who generally have less access to employer-funded parental leave schemes.

In 2007, less than one quarter of women on very low wages had access to paid maternity leave, compared to three quarters on high wages.

AWU proud to work with Rudd Govt on delivering this important workplace right

The Baby Bonus and Family Tax Benefits will continue to be available for mums who choose to stay at home. A stay at home mum with a partner on average earnings will continue to receive around $12,000 in government assistance in the year after the birth of their baby.

The AWU is proud to work with the Rudd Government and Australian mothers, families and businesses ensuring these progressive changes are implemented to meet the challenges of the 21st century.