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MR. CHRÉTIEN'S PROPOSED SCHEME FOR
MATERNITY BENEFITS
In his
grand plans to leave a legacy, PM Chrétien has been
throwing out all sorts of ideas to see whether they resonate
with the public.
One idea
is to extend parental leave from its current one year (as
set out in the 2000 budget) to two years' duration. REAL Women's
response to this? NO THANK YOU!
As much
as we support parents being with their babies, we know this
will not be the result if maternity leave is extended to 24
months.
This
conclusion is due to the fact that, at present, only 40% of
parents who are eligible take advantage of the full one-year
leave. The average leave is less than ten months. This is
because the maximum amount paid out by Employment Insurance
for maternity leave is $413 per week, less taxes, which is
not sufficient for many families. (See Reality, May/June
2002, "The Problem with Canada's Maternity Benefits",
p.13.) Moreover, since the mother has to have worked 600 hours
(up from the previous 300 hours), and because no benefits
are available for mothers working on contract or who are self-employed
- not many mothers actually qualify for these benefits. Those
who gain the most from maternity benefits are parents who
both have good incomes and full-time jobs.
According
to a 2001 Human Resources Development Canada report, only
169,000 parents filed for maternity benefits in 1999-2000,
and of these, only 5% were fathers (an option extended to
them in 1990). The rate of fathers participating in parental
leave has remained consistent for over 10 years. In short,
many mothers and fathers cannot afford the financial luxury
of taking extended time off from work for even one year, and
most certainly would not be able to do so for a two-year period,
as suggested by Mr. Chrétien.
Business
groups are also unhappy with Mr. Chrétien's suggestion
to extend maternity benefits to two years. Employers contribute
to Employment Insurance, $3.15 for every $100 an employee
earns. Small businesses, which provide about half of all Canadian
jobs, are least able to withstand the financial burden of
an extension of maternity leave. According to Catherine Swift,
President of the Canadian Federation of Independent Business,
businesses are having a tough time as it is, finding and keeping
skilled workers. To have young people leave the labour market
for two years would be devastating. Moreover, recruitment
and training to cover workers on leave are key expense areas
for businesses. The last change to maternity leave of one
year cost small businesses approximately $1 billion.
Walter
Robinson, Federal Director of the Canadian Taxpayers Federation,
has come up with a far better idea than extending the time
for maternity leave. He suggests a tax break for all parents
which would give them more flexibility for staying at home
with children. Tax breaks would allow families to have a greater
choice to not be forced into the work force. Another idea
is to continue the one-year maternity leave, but to widen
the eligibility requirements so that more mothers can qualify
for benefits. Also, raising the benefits paid out during maternity
leave is a must. In short, we need to fix the existing program
before we extend it further.
No thanks,
Mr. Chrétien. Your trial balloon, under examination,
has burst!
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