
Issue No 121		30 November 2001

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Twelve Weeks Parental Leave For Kiwis

The New Zealand Government will introduce 12 weeks paid parental leave for parents following a birth or adoption. The scheme will start in the middle of next year.

The paid parental leave will be available to about two thirds of working mothers who will have babies or adopt.

About a third of working women are either self-employed or do not meet the eligibility criteria and are thus not covered, although they will still be covered by NZ's parental tax credit scheme.

The paid parental leave will be paid by the Government, with about 20,000 women will benefit each year. Eligible women will receive a maximum of $325 gross per week, which is about $257 in hand after tax (based on the 21% rate). The $325 is about 53% of average weekly earnings.

Those who earn less than $325 gross will get 100% of their pay rate - about a third of eligible women. Another 15-20% will get 80% or more.

The scheme will cost the NZ Government about $42 million per year, which is

not about to break the bank. The eligibility criteria is 10 hours work per week for a year with a single employer.

The payments can be shared between eligible partners, including those in same-sex relationships.

The criticisms of the scheme are that it does not meet the 14 week paid leave standard promoted by the International Labour Organisation, that the $325 maximum is too low, and that it should be extended to the self-employed and other ineligibles (it appears the Government does see extension as a next stage).

UK Also Improves Its Parental Leave

Meanwhile, the Employment Bill currently before the UK Parliament improves paternity and maternity leave.

From 2003 paternity leave will be two weeks paid leave at 100 pounds per week or 90% of earnings, whichever is less. The qualifying period is effectively 40 weeks employment prior to birth.

Adoption leave is to be introduced, with 26 paid weeks and 26 unpaid. The pay rate is the 100 pounds/90% of earnings formula.

Maternity leave will become 26 weeks paid and 26 weeks unpaid. The pay rate will be 90% of earnings for 6 weeks followed by 20 weeks at 100 pounds. The qualification period is effectively 40 weeks.

These parental leaves are administered by employers. That is employers pay the leave and reclaim from Government. Large employers can claim 92% of the cost (i.e. they make a small contribution) and small employers can claim 105% (i.e. the Govt pays them an administration fee).

The Blair Labour Government will also introduce some rights for parents of young children to ask for shorter hours. However they have steered away from establishing a right to flexitime.

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Issue 121 contents

Interview: Back to the Battle
Federal Labor's new industrial relations spokesman Robert McClelland outlines the challenges for the next three years.

Politics: The Baby and the Bath Water
ACTU secretary Greg Combet gives his take on the debate over the ALP's relations with the union movement.

Unions: We're Solid
Bradon Ellem charts the history of the Pilbara dispute, and finds a revitalised grass-roots unionism challenging BHP's individual contracts bulldozer

Organising: Benidgo Pioneer Comes Up Trumps
ACTU Delegate of the Year, Leonie Saunders, is living proof of the way unions are adapting to life under the strictures of a hostile Government.

Technology: India: Cricket, Computers and Corruption
Russell Lansbury cuts through the hype to look out the so-called hi-tech revolution on the sub-continent.

International: Soul Searching
The party of labour in Canada � the NDP - is right now undergoing a massive struggle for its heart and soul.

History: A Timeless Debate
The ALP and unions - it's a debate that's raged for years as this extract from a 1947 Lloyd Ross pamplet shows.

Review: In Fear of Security
Launching his new book, Anthony Burke argues that the cry of "security" is the last refuge of the political scoundrel

» Union Journo on Death List

» First 'Lab Rats' in Bank Hold-Up

» Monk's Mad Power Grab from States

» Big Print Merger Threatens Jobs

» Anger as Labor Staffers Shun Unions

» Unions Are Well Advanced In Change Unions Tell ALP

» Unions Step Up Organising Drive

» Education, Call Centre Unions Sweep Awards

» Bank AGMs Focus of Worker Anger

» Gender Balance in Transport Concessions

» Concern As Sydney Collapses

» Bakers Seek More Bread

» CFMEU Forces Re-Think On Asbestos

» Call Goes Out for Union Summer

» Twelve Weeks Parental Leave For Kiwis

» Organiser of the Year Nominations Open

» Activists Notebook

» The Soapbox

» Sport

» Labour Review

» Tool Shed

» What's Wrong With Labor

» Why I'm Quitting the ALP

» Compo Flak

» Union Democracy

» Multi-Skilling Corrigan Style

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