Maternity leave vote: What does the extension mean for Maltese business?

The outcome of the European Parliament’s vote on the revision of the maternity leave directive has generated several reactions from different quarters. The Malta Business Bureau and the local business community have reacted with disappointment insofar that the six-week extension of maternity leave will translate into additional costs for Maltese employers, especially since Malta is one EU member-state (out of only three) that does not provide public funding to support employers funding the cost of maternity leave.

The adoption of the Estrela Report on Maternity Leave brings on a series of new elements. In the first instance, MEPs voted in favour of extending the minimum maternity leave from 14 to 20 weeks, going beyond the European Commission’s proposal to extend it to 18 weeks. The EP also adopted amendments allowing member-states’ governments the discretion to substitute the last 4 weeks of maternity leave with another form of family-related leave which would be covered at 75 per cent of full pay.

The EP has interpreted this to mean that the first 16 weeks only of maternity leave would be covered at 100 per cent pay. This means that in Malta it would be possible to have two weeks at full-pay and the remaining four weeks at 75 per cent of pay, out of the total additional six weeks. Additional costs for employers will also be ushered in through the introduction of paternity leave whereby fathers are given the right to fully paid paternity leave of at least two weeks.

The EP vote also reinforced the employment rights of pregnant and breastfeeding workers. The Estrela Resolution bans the dismissal of such workers from the beginning of a pregnancy to at least six months following the end of the maternity leave while it entitles women to return to their job or to “equivalent posts”, as prior to maternity.

Maltese business augurs that the forthcoming Council discussions on the draft directive will take a more balanced approach, which takes both work-life reconciliation and economic competitiveness into account.

Making the case for market surveillance: The adoption of mandatory origin marking?

The adoption of the Muscardini Report on the indication of the country of origin of certain products imported from third countries has been well received by Maltese businesses. The report calls for the urgent adoption of an EU regulation to introduce an EU-wide scheme of mandatory origin marking on selected goods that are destined for final consumers.

It is the conviction of the local business community that EU legislation is required to enhance market surveillance at the point of entry into the EU’s internal market. A mandatory origin-marking scheme is in itself not a protectionist measure but it would enhance the transparency on the origin of imported goods whilst ensuring that consumers can make a better informed choice.

An “origin-marking” scheme would help promote the competitiveness of local manufacturing industry particularly in the textile, glassware, furniture and machinery sectors. While many European products are already well-known worldwide for their quality, many other EU businesses cannot rely on recognition of renowned global trading “brands”. For such companies, the ‘origin-marking’ scheme will enable EU customers to distinguish their products from goods imported from outside the European single market.

Currently there are no harmonised origin marking rules at EU level and the discussions on the Commission’s draft regulation has ground to a halt due to the stern opposition of some member-states’ governments. Thanks to the European Parliament’s approval of the Muscardini Report, it is envisaged that the discussions on mandatory origin-marking will start again soon.

For more information on EU affairs related to business, one may contact the Malta Business Bureau on 2125 1719 or via email on info@mbb.org.mt. One may also visit the business portal www.mbb.org.mt