Paid Parental Leave

‍Some of the largest employers on the ASX not paying parental leave: Jewelry retailer Lovisa (ASX:LOV); retail company Premier Investments (ASX:PMV) - the owner of brands like Just Jeans, Peter Alexander and Smiggle; and childcare provider G8 Education (ASX:G8), don’t offer employer-paid parental leave.[1]

Growing the gender pay gap and ‘motherhood’ penalty: A third of the gender pay gap can be attributed to the time women spend outside of the workforce undertaking unpaid care, including looking after newborn children. Women in Australia face a ‘motherhood penalty’, with earnings reduced on average by 55% in the first five years of parenthood.[2] No wonder Australia was ranked 38th in the world for women’s economic participation and opportunity.[3] G8, Lovisa, and Premier Investments have a largely female workforce, helping grow the gender pay gap by not paying parental leave. 

Retail and childcare workers are already underpaid: The enforceable minimum wages in retail and fast food means some workers under the age of 21 are paid a “poverty wage” (50% of median adult full-time wages).[4] Wages for childcare workers, which can be as little as $24 an hour, have prompted a leading union to call for them to receive a 25% pay rise to help address the industry staffing crisis.[5] No employer-funded parental leave on top of their low wages is contributing to  economic inequality. 

Lagging behind competitors: These three companies employ over 27,000 people combined in industries like retail and childcare that are dominated by younger, female employees. These companies are bucking the trend, as female dominated companies are more likely to offer paid parental leave and make it available regardless of gender.[6]