Paternity leave could 'cripple retail industry'
11/06/2008(3:44 PM)
Paying paternal leave for new parents could cripple some smaller sized groups, according to an industry body.
An employer-funded scheme is being proposed across the whole retail industry, but the Australian Retailers Association (ARA) said the enterprise should be able to decide on their own terms, with the government funding the proposals, reports the West Australian.
"The ARA acknowledges that the momentum towards a national parental leave scheme is inevitable. However, we strongly dispute that such a scheme needs to be supported by employer contributions," a statement said to the inquiry into the plans.
It added the costs would "seriously harm the economic viability" of some retail groups and would lead to further costs for small and medium businesses.
Richard Evans, the executive director of the association, told the newspaper a split would occur in the industry, by which larger retailers would be able to afford the costs but smaller ones would not.
Woolworths, one of the country's largest employers, recently revealed it is to offer employees paid maternity leave.
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