A national government funded parental leave scheme should not be committed to without first undertaking a comprehensive investigation into the impact on business, the Chamber of Commerce and Industry of Western Australia said today.
The CCI today appeared before the Productivity Commission as part of its national inquiry into the benefits of providing paid maternity, paternity and parental leave to Australians.
The CCI said it supported paid parental leave on the condition that it is fully government funded and administered and that business should not be expected to foot the bill for any future compulsory scheme.
In its submission to the Productivity Commission, CCI favours a 14 week parental leave scheme that is paid at the rate of the Federal Minimum Wage.
CCI is seeking assurances that the introduction of paid parental leave will not be an additional regulatory burden on small, medium, and large businesses.
Western Australian employers are looking to the Federal Government to uphold its pre-election commitment that it will not impose additional costs and red-tape on business.
With labour shortages remaining the greatest challenge for businesses across the state, employers are also concerned that it will become increasingly difficult to recruit new staff on short term contracts to backfill parental leave vacancies.
Government must assist small business to ensure that any parental leave scheme does not serve as a disincentive for the employment of women.
CCI's submission contains a number of recommendations to ensure the scheme does not have any unintended adverse consequences for employers. These include;
There should be no mandatory obligation for employers to top up payments above the Federal Minimum Wage.
CCI supports a government funded and administered scheme providing 14 weeks leave paid at the Federal Minimum Wage.
Undertake further research to determine the effect that any paid parental leave scheme will have on business, especially small firms.
If the Australian community considers that paid parental leave is a worthwhile initiative, it must not represent an additional financial burden on an already highly taxed business sector already facing significant wage pressure.
