Australians should get nearly triple current paid parental leave: ACTU

A tripling of the length of paid parental leave would go a long way to addressing a “profound inequality” in Australia, unions argue.

Australians should get nearly triple the amount of paid parental leave they are currently eligible for to help address a “profound inequality” between men and women.

That’s the argument from the Australian Council of Trade Unions, which is pushing for new government measures to reduce barriers to women’s economic participation, including the “significant and unequal care burden” placed on them.

The peak union body says $111bn could be generated every year through a 50 per cent reduction in gender inequality in the workplace, which currently results in men being paid on average $472 more per week than women.

In the latest of a series of policy papers to be released ahead of the Albanese government’s jobs and skills summit, the ACTU calls for paid parental leave to be increased from 18 to 26 weeks and eventually to 52 weeks by 2030.

The report said the entitlement should be offered on a shared basis between parents, with incentives to drive equal parenting and superannuation paid on all leave.

The federal government’s policy is that eligible employees who are the primary carer of a newborn or newly adopted child get up to 18 weeks’ paid parental leave, paid at the national minimum wage, which in this financial year is $812.60 per week.

Australian Council of Trade Unions president Michele O’Neil is calling for government reforms to address workplace gender inequity. Picture: Liam Kidston.

ACTU president Michele O’Neil said Australia had the second worst government funded paid parental leave scheme in the developed world.

“In 2022, women shouldn’t have to give up on having a family and men shouldn’t miss out on being involved in raising their kids because paid parental leave is insufficient,” she said.

The ACTU makes 13 other recommendations in its report, including bringing forward the Albanese government’s childcare subsidy increases from July 1 to January 1 next year.

The peak union body will also push for significant improvements to pay and job security in the aged care, early childhood education and care, disability support and other social services sectors.

“The care economy needs to be centre stage at the jobs summit. Right now, women are leaving the industry in droves, but this sector could be the biggest source of secure, well paid jobs in the future,” Ms O’Neil said.

The release of the ACTU paper on Monday coincides with “equal pay day”, which marks the 60 additional days women need to work on average to earn the same amount as men.

Prime Minister Anthony Albanese used his speech at the National Press Club to pledge improvements for women in the workplace. Picture: NCA NewsWire / Gary Ramage

The gap between men’s and women’s average full-time weekly pay has grown to 14.1 per cent, up by 1.9 per cent from the previous year, according to data from the Australian Bureau of Statistics.

The Workplace Gender Equality Agency has renewed its own push for employers to address the pay gap, including the introduction of a “robust gender neutral paid parental leave policy”.

Anthony Albanese has committed to amending employment laws to include gender pay equity requirements by the end of 2022.

The Prime Minister used his speech to the National Press Club in Canberra on Monday to pledge “cultural change” for working women and to address the gender pay gap.

“After 30 years in which the gender pay gap has hardly budged, we need serious improvement in economic equality for women,” he said.

“This will take more than legislative change. We need a cultural change, too … and new leadership on respect and safety and fairness for working women.”