The Malta Business Bureau continues to oppose the EU’s proposal for additional maternity and paternity leave despite Labour MEP Edward Scicluna’s claim that the measure would not be too costly for employers.
The EU is proposing that employees should be entitled to an additional six weeks’ maternity leave and two weeks’ paternity leave.
Prof. Scicluna last week presented a paper questioning the results of a study on the EU’s proposals conducted on behalf of the MBB by fellow economist Gordon Cordina earlier this year.
According to the MBB, the voice of Malta’s employers in Brussels, if the EU proposal is implemented, it could cost Malta a further €12 million. However, Prof. Scicluna dismissed the main findings of the MBB report and in a paper aimed to “rebalance the stated costs and benefits assumed by the MBB report”, slashed the potential costs of such a proposal to just €5 million.
A spokesman for the MBB told The Times Business that despite Prof. Scicluna’s paper, Maltese employers will be sticking to their position.
“Although Prof Scicluna’s paper does question the assumptions underpinning our study, it does clearly acknowledge that the MBB report is based on a correct technical approach,” he said.
“In substantive terms, the Labour MEP’s report makes two fundamental departures from the MBB report on maternity leave. First, it states that the economic benefits of extending maternity leave in Malta can be estimated and derives an estimate of such benefits as amounting to an increase in the female employment participation rate of nine per cent.
Secondly, it states that the cost cannot be estimated at this stage and calls for further surveys in this regard, and in any case, it estimates that such costs would not exceed €5million per year, as compared to the potential €12 million per year as found in the MBB Report.”
The MBB spokesman said that despite the Labour MEP’s claims, employers will be appealing to the government not to give its consent to the EU proposals.
Until now Malta has not taken a final position on the Commission’s proposal preferring to await the final deal to be struck at the European Parliament over the issue. However, member states are known to be divided over this proposal. In order to become law, the new legislation needs to obtain a qualified majority at European Council level.
Last February, the EP, which has already approved at committee stage an increase of six fully paid maternity leave weeks over and above the current 14 week minimum threshold, decided to postpone the final vote to a plenary session until a new study on the impact of such a move, particularly its financial burden, will be concluded.
Officially, Malta is taking a cautious position over the issue.
“Although Malta is in favour of more incentives so that families will have a better work/family balance, there is a cost to all this. We have to be very cautious as this may not be the right time to increase the burden on businesses,” a government source said.
At the same time, Malta is insisting that if an increase in maternity leave is to be granted, all member states should be able to apply the same rules, particularly on how maternity leave should be paid.
Although Malta sticks to the minimum leave entitlement allowed by EU rules - 14 weeks – such leave is fully paid. On the other hand, other member states grant more leave than Malta but in many cases this is only partially paid or not paid at all.
“Malta is insisting on a level playing field where all member states grant the same payment entitlements,” the government source said.
The Commission made its proposal in October 2008. It had said that existing legislation on maternity leave, which dates from 1992, was not enough to balance work and family life. According to Commission figures, only 65.5 per cent of women with dependent children work, compared to 91.7 per cent of men.