As Britain slides into depression, the EU insists on TREBLING maternity
pay
By Michael Lea12th March 2009
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An extension of existing rights would more than triple the amount
currently received by new mothers in Britain
Women will be entitled to full pay for the first 18 weeks of maternity
leave under radical EU plans.
The dramatic extension of existing rights would more than triple the
amount currently received by new mothers in Britain - but leave
businesses and the taxpayer saddled with a massive bill as the recession
bites.
The current UK entitlement is six weeks at 90 per cent of average
salary, with another 33 weeks at a flat rate £117.18.
Industry leaders said such a change - trebling the full-pay period -
would damage an economy struggling to recover.
There was also concern that the changes would deter employers from
hiring younger women at all, and limit promotions and career
opportunities for female workers.
Details of the new maternity pay plan were spelled out by Business
Minister Pat McFadden, who said the UK was fighting to block it.
The Government faces an uphill battle, however, because most other EU
countries support the idea and Britain does not have a veto on it.
Ministers are trying to negotiate an opt-out to reduce the salary
entitlement.
Under current rules, firms can reclaim part of their maternity pay costs
- and in some cases all - from the Treasury. It is not clear if that
would still apply.
Either way, it will mean companies or taxpayers footing the bill.
For the Tories, shadow small business minister Mark Prisk said: 'Soaring
costs and unnecessary red tape are needed by businesses like a hole in
the head.
'When you run a small firm, the loss of one member of staff - even for a
short period of time - can be critical. It's time bureaucrats in
Brussels understood this and stopped trying to interfere in the running
of British firms.'
Jill Kirby, director of the Centre for Policy Studies, the free market
economics think-tank, said: 'This is yet another piece of EU legislation
that is going to impose a punishing burden on businesses that are
already struggling, as well as the taxpayer.
'It is a very bad idea during an economic downturn.
'Another danger with increasing regulation designed, purportedly, to
protect women is that it makes it increasingly unattractive for
businesses to employ women. This is a heavy-handed way of dealing with
issues that should be left between employers and employees.'
Under EU rules, Brussels sets the minimum levels of maternity leave and
pay, but member countries can add to these.
The proposed new directive would increase minimum leave from 14 weeks to
18 - not a problem in the UK where women have the right to a year off.
But the maternity pay changes would be hugely significant. Mr McFadden
told the House of Lords Committee on EU Social Affairs that a new
directive would be worthwhile if it set 'minimum baselines' which member
states had to meet.
But he warned against trying to impose 'prescriptive' common standards
that took no account of the flexibility and variety of existing systems
in different countries.
Mr McFadden said: 'Enormous strides have been made in the UK in the last
decade. If you look at the whole package around support for mothers in
early days, it is an enormously different and improved situation
compared to a decade ago.'
Peter Luff, Tory chairman of the Commons' Business and Enterprise
Committee, said: 'The cries of pain coming from small and medium- sized
businesses are already very loud.
'They simply cannot take any more. We desperately need to remove the
burdens of regulation, not add to them.
'It is not too serious to say that, for many firms, this could be the
straw that breaks the camel's back.'
But the European Commission spokesman has said: 'Given that the
mortgage, the rent, the cost of food continues when people are on
maternity leave - and there are also the cost increases from having a
baby - it makes sense from our point of view.'
The proposals are currently being discussed by MEPs and employment
ministers.
If they are approved, which is expected to happen this year, Britain
would have two years to put the system in place.
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