Session 3.3. Design, costing, implementation considerations In-depth analysis of select social security branch – Maternity Protection Session 3.3. Design, costing, implementation considerations

1. The concepts 2. Finance and economic concerns 3. Implementation aspects 4. Transferring the learning

Why should employers bother? 1. Social and economic performance Employers contribute to financing social protection through contribution (effect on labour cost) and taxes Social protection is an important element of social stability Social protection is important to equity

Why should employers bother. 2 Why should employers bother? 2. Human resources attraction and retention Social protection impacts labour supply quantity and quality: health, education, Availability to work ... Social protection impacts industrial relations and collective bargaining Effect on labour motivation – work ethics Can be used as an attraction measure

Why should employers bother? 3. Compliance and supply chain Social protection is a legal obligation for employers It is an additional administrative burden in some cases More and more social protection is included in social audits and is part of the requirements to supply multinational enterprises It is a human right!

Why should employers bother? 4. Competitiveness and global demand Social protection can boost domestic demand, and has demonstrated effects on local markets Social protection is a demand stabilizer in case of crisis Social protection, and the social protection floor in particular is supporting the transition from the informal to the formal economy Social protection provides the necessary safety net for entrepreuneurs to take risks

Social protection and employers’ liabilities Employers’ liability Social protection schemes Oblige employers to individually bear the economic costs of contingency Often results in a double burden (e.g. payment of two wages during sick leave due to the cost of replacement) It is at the time that money is lacking that it is needed the most (e.g. bankrupt) Collectively financed schemes, funded from insurance contributions, taxation or both, are based on the principles of solidarity and risk-pooling Fairer distribution of the costs State as a final guarantor Note: According to Art. 6, para. 8, of Convention No. 183: ”An employer shall not be individually liable for the direct cost of any such monetary benefit to a woman employed by him or her without that employer’s specific agreement except where: (a) such is provided for in national law or practice in a member State prior to the date of adoption of this Convention by the International Labour Conference; or (b) it is subsequently agreed at the national level by the government and the representative organizations of employers and workers.”

Social protection and corporate social programmes Are part of the benefit package, therefore impact the relative attractiveness of employers Supplement the social protection system by providing additional or complementary benefits Based on individual commitment of employers Level of protection Poor Informal economy Formal economy

What is social security/protection? Reduce Poverty Mitigate Life cycle risks with financial consequences Disasters and conflicts can intensify the need for social protection Maternity Sickness Unemployment Work injury Medical care Families with children Invalidity Death of the breadwinner Old age Life-cycle ILO sets standards that lay down obligations and guidelines for ILO member States They help in drafting laws and regulations, designing and implementing social security systems

Social protection and enterprises Social and economic performance Government / Regulators Suppliers Enterprise Consumers Human capital / Labour Unions Competitors

Goals of maternity protection To ensure that women’s economic activities do pose health risks to the mother and child To protect the economic well being of the family during confinement, child birth, and post delivery Maternity protection has different components including: paid maternity leave, delivery health-care cover (can include cash benefits), post resumption of work benefits (breast-feeding and childcare facilities), health protection and or conducive work schedule), employment protection & non-discrimination.

ILO standards – Maternity Protection Convention 183 - Recommendation 191 Protection against discrimination should be extended to include women who are job seekers Entitlements to pension, promotion, training preserved Maternity benefits must be available to all women (including informal sector, migrant, domestic, seasonal workers etc.) Protection should be afforded by way of legislature, Schemes should not have punitive eligibility requirements Sufficient administration capacity should exist to enforce legislation and implement existing programs Benefits can be embedded by way of collective agreements

ILO standards – Maternity Protection Convention 183 - Recommendation 191 Maternity leave duration minimum 14-18 weeks Least costly social security branch Universal schemes more affordable, and create a less discriminatory work environment OSH programs to ensure that the type of work undertaken and work environment not prejudicial to pregnant or nursing mothers or their children Cast transfer benefits can be designed to extend benefits to informal sectors Social dialogue important for maternity policy & scheme design Extension of maternity protection rights to fathers (adopting parents)

The argument for Maternity Protection Investment vs. Cost Loss of trained female talent Recruitment, re-training and lost production can be high on the employers / economy due to discriminatory practices Challenges to parents re-joining the work force can be exacerbated by high child-care costs (especially in developed countries) US Impact of Maternity on Employment 43% of qualified mothers exit work place (off-ramping) post maternity leave. Off these only 74% were able to re-join the work force Only 40% regained full-time employment Off-ramping resulted in 37% lower wages post resumption

The argument for Maternity Protection Investment vs. Cost Introduce re-entry programs Intensive training that reinforces lost and new skills, promotes confidence and engagement with the employer Provide flexible post maternity work programs Flexible / teleworking arrangements, on-site childcare facilities, subsidies for external child-care Tax-rebates for compliant employers? Education & Awareness Brand maternity benefits as family benefits to void discrimination Actively promote Paternal leave, and associated benefits Managers trained in maternity / paternity coaching Contributions & benefits to accrue to all

The argument for Maternity Protection Looking forward.. Employer balancing act between multiple business demands Increased international competition Consumer and labour markets Reduced profits? Increased regulation Tax / OSH / Employee relations / Product standards / Market conduct / Green growth Increased decent work labour demands Salary / Benefits / Family-friendly work schedules / Litigation Creative Labour to new business opportunities Attract, retain, engage Explore new engagement strategies with ILO

Thank you! Questions?