Vodafone’s leave decision

Stuff reports:

A flood of supportive messages has been the “overwhelming” response to news that Vodafone will increase the amount of fully paid maternity leave it offers.

“I didn’t expect it to be latched on to as much,” chief executive Russell Stanners said on Monday.

Vodafone announced last week that new mums on staff will get an extra four weeks fully paid maternity leave under the company scheme from April 1.

The change takes the company’s maternity leave provision from 12 to 16 weeks. It will also offer mothers who return to work within 12 months the ability to work a 30 hour week for 40 hours pay for six months. …

The move brings Vodafone into line with the government paid parental leave term of 16 weeks which will begin on the same day, increasing to 18 weeks from April 1, 2016.

However, the maximum maternity pay available from the government scheme is $504.10 gross a week while Vodafone’s scheme provides the employee’s full pay.

Good on Vodafone for their decision. But understand Vodafone are not doing this to be nice. They are doing this because it is in their commercial self-interest to recruit and retain staff, 37% of whom are women.

This decision doesn’t make the case for the state legislating more generous leave provisions for all companies. It makes the case for not doing so, and allowing those companies that wish to offer more generous leave provisions to do so. Vodafone’s move will put pressure on competitors such as Spark to do the same. But what is appropriate for a giant company like Vodafone is not necessarily appropriate for Jack’s Cafe which couldn’t afford to pay a staffer their full wages for six months, while not working.