Persisting with imposition is in no one’s interest

The Malta Chamber of Commerce, Enterprise and Industry supports gender equality and agrees with the objective of increasing women’s participation in decision making positions. However, it does not agree with the heavy-handed manner in which the European Commission, in particular Vice-President Viviane Reding, is persisting with the introduction of quotas or legislation to stimulate women’s presence on boards of public listed companies.

Merit, experience and achievement should be the most important qualifications for any post and most definitely not gender- Tancred Tabone

The Malta Chamber believes that setting such mandatory quotas will force entrepreneurs to be sidetracked from making the right decisions in the interest of their companies. With quotas taking precedence over skills and competencies, women candidates may be given jobs on the merit of their gender rather than on the basis of academic qualifications and merit. This is counter-productive for women’s long term career progression. It is neither in the interest of business. In fact, international experience has already shown that quotas may not necessarily work.

To take a specific case, in Norway, where 40 per cent of directors must be women, the Professional Boards Forum reported that the “increased number of women on boards has diminished company performance and reduced the number of female senior executives”. In the UK, 15 per cent of FTSE 100 executive committee members are women. This is equal to Norway’s percentage despite the set quota. In Sweden, where there are no quotas, 25 per cent of board members are women, while 21 per cent of executive level employees are women. This model shows that increased female participation at decision making level can be achieved on merit, without the need for quotas and by ensuring a holistic approach is in place.

Moreover, a report by McKinsey published in March this year revealed that “there are now more women on corporate boards [in Europe]. But women’s representation is lower where, perhaps, it matters most – on executive committees”. Commissioner Reding’s approach to populate boardrooms with token skirts is pointless because, whilst numerical targets may be reached at the very top, further down, women in their 30s are finding it hard to reconcile executive positions with their family commitments. Ms Reding’s approach is therefore deemed piecemeal and short-sighted.

Last July, when Viviane Reding first launched her “Women on the Board Pledge for Europe”, the Malta Chamber had already gone on record to state that quotas will not solve the compatibility of work and family life. Official statistics present a telling picture of the situation in Malta. The employment rate of women aged between 15-24 currently stands at 42 per cent, while for those aged 25-34 it rises closer to European averages at 65 per cent. The rate declines to 30 per cent thereafter reflecting (a) the difficulties to reconcile career and family commitments and (b) the fact that historically, Maltese society did not encourage women to study or work.

Recent NSO figures also show that employed women average 35 hours of work per week which is six hours less than men and that more than two-thirds of women aged 15-64 had a secondary level of education. Besides, 17 per cent had a post-secondary level of education and a further 14 per cent had reached a tertiary level of education

It is clear, at least locally, that Malta must address the issues that are hindering women from occupying employment and high-positions post-motherhood. In this regard, rather than quotas, the Malta Chamber believes there is more merit in diversity and in a more holistic approach. This will aim to raise the number of women in the workplace at the decision making level, while offering full support for them to do so. In this regard, more attention needs to be given to supply-side measures to achieve better work-life balance, such as the establishment of easily accessible and affordable child care facilities and school-hours extension. Such nation-wide measures provide peace of mind and flexibility at the place of work without burdening parents or private employers.

In his report on the scarce representation of women at the top of British business, Lord Davies said: “It is imperative that boards are made up of competent high calibre individuals who together offer a mix of skills, experiences and backgrounds. Board appointments must always be made on merit, with the best qualified person getting the job,” with quotas not being the answer.

This opinion is also reinforced by women’s organisations in the UK. The Women’s Business Forum (UK) surveyed its members in the beginning of March when it emerged that 82 per cent were opposed to Reding’s quota plan. Heather Jackson, the organisation’s founder and CEO commented: “My members are too damn good at their jobs to want to be seen as tokens”.

Writing in The Sunday Times of London on March 11, Eleanor Mills said: “For the EU to open the door to positive discrimination would be a mistake. Research from America demonstrates that such policies often backfire and reinforce the prejudices and problems they were meant to erase. Women don’t want or need that kind of special pleading. We want to rise to the top on merit.” She closed off her article with a final message to Reding: “Thanks. But no thanks.”

Likewise, the Malta Chamber believes that merit, experience and achievement should be the most important qualifications for any post and most definitely not gender. It believes that it is neither in the interest of business nor women to force matters otherwise. The Malta Chamber urges the European Commission to take heed of the above advice and pursue its gender equality objectives in a manner which is acceptable to both women and business.

Mr Tabone is president of the Chamber of Commerce, Enterprise and Industry.