Media Release: Retailers Disappointed at Parental Leave Decision

9 March 2004

"The Prime Minister's announcement that parental leave will be available for staff after just six months employment is a further blow to smaller businesses," said John Albertson chief executive of the New Zealand Retailers Association.

This important policy change was buried in yesterday's announcement that the period of paid parental leave would increase from 12 weeks to 14 weeks over the next two years. There was no consultation on the proposal and it follows hard on the heels of the disruptive changes to holidays and the recently announced changes to the Employment Relations Act.

"We have no problem with government increasing the payment it makes to a mother after the birth of her baby, but that payment should not be confused with Parental Leave and the employer's obligation to guarantee an employees job while they are at home caring for the baby.

"Once again, Government has failed to recognise the many hard working, self-employed women who should also be entitled to payment when they stop work to have a child. These are the people who put their own money on the line and set up and run the many thousands of smaller businesses that are the lifeblood of New Zealand's economy.

"Six month's employment before taking parental leave is a very short time. An employee could take a job knowing they were pregnant and secure in the knowledge that the employer had to hold the position open for at least 14 weeks whether they intend to come back to work or not. It costs a lot to recruit and train a new employee and it is unreasonable to impose this further risk on the employer."

-end-

Further Information: 

John Albertson 027 445 9400
Chief Executive Officer
jalbertson@retail.org.nz

Cliff Daly 025 371 391
Industrial Relations Consultant
cdaly@retail.org.nz 

New Zealand Retailers Association Inc, National Office
Level 8, Willbank House, 57 Willis Street, Wellington. 
www.retail.org.nz