Running head: Economic Position related to maternity leave Mothers’ economic position impacted by policies related to maternity leave Kathryn Kotecki Dr. Strassberg SOC 1100 April 28, 2013 1 Maternity leave and economic impact 2 Mothers’ economic position impacted by policies related to maternity leave To what extent do Policies related to maternity leave impact mothers’ economic position in Poland and in the United States? In terms of “policies related to maternity leave” and “economic position” I’m referring to policies related to women in the workforce that decide to take a temporarily leave of absence to give birth and to raise their children. Maternity leave refers to the period of time that a new mother takes off from work following the birth of her baby (American Pregnancy Association, 2013). How long is a maternity leave? Once they have taken maternity leave are the women assured their jobs once they decide to return from leave? Are these women able to maternity leave with pay? If so, how long will they be able to take a paid leave and how much are they being paid on leave? Do they have to return once they are no longer receiving a paid leave or can they still take time to raise their children without using sick or vacation days? This research question as well as the several other questions above are important to research and to clarify for women. The maternity leave policies are crucial to understand so that women are able to estimate their economic position once they return from leave if they choose to do so. Some women are currently facing economic insecurity when deciding to have a family during their career. If they decide to have children and a family, they must deal with the two different groups, family and laborer, conflicting with one another. Furthermore, women may receive consequence from their occupation if they decide that family is more important to them. For instance, in Karen Sternheimer’s Everyday Sociology Reader Arlie Russell Hochschild discusses her findings after doing several interviews of women working at a major corporation. One such finding was that of a mother’s commitment to her family clashed with the absentee rules. Maternity leave and economic impact 3 The kids have been sick all winter. Todd has the chicken pox now. Two weeks ago, Teddy got pneumonia and they put him in the hospital. We called up my supervisor and asked for some time off so I could stay with Teddy. But he said no. I took three sick days and then some vacation days, and they put a note in my file. But I can’t take my kids to my mom or my mother-in-law every time they get sick. They both work, too. And besides, when Teddy is sick, he wants me, not anyone else (2010, p 250). Though this woman had not just given birth to a child, she still faced with job insecurity. She later went on in the book to describe that when employees’ miss so many days they receive letters in their employee portfolios which may lead to termination. Furthermore, we can assume from this woman’s description of being a working mother within the company what the company’s attendance policy related to maternity leave may be. These women struggle deciding what is more important, keeping their job or being with their family. Furthermore, implying women face job insecurity. Globally, countries have various policies regarding maternity leave. Some policies are more beneficial to a mother while others are not. According to a survey on the website Catalyst: The United States is one of the few industrialized nations that do not provide paid family leave for new parents. Some parents can take time off under the Family and Medical Leave Act of 1993, which guarantees eligible employees at companies with more than 50 employees 12 weeks of unpaid, job-guaranteed leave for the birth of a child or care of a newborn, adoption of a child, to care for an immediate family member with a serious health condition, or to take medical leave for a serious health condition. Similar statutes exist in Washington D.C. and Maternity leave and economic impact 4 some states: California, Connecticut, Hawaii, Maine, Minnesota, New Jersey, Oregon, Rhode Island, Vermont, Washington, and Wisconsin. California became the first state to enact a paid family leave act in 2002, allowing employees to take 6 weeks leave up to 55% of their weekly wages (with a benefit cap) to care for a newborn, newly adopted child, or sick family member, and every employee who contributes to the State Disability Insurance is covered, not just those in companies with 50 employees or more. Although some individual companies offer a paid maternity leave benefit, many parents end up using a combination of short-term disability, sick leave, vacation, personal days, and unpaid family leave (Catalyst, 2013). 28.5% of mothers in the United States received paid maternity leave. 18.4% received other paid leave use for maternity such as sick leave, disability and vacation. 25.9% of women did not receive any paid maternity leave, 14.3% quit their job after giving birth, 2.0% of women were let go and 1.8% did not stop working at all. According to the same website, a survey showed that in the United States in 2011 16.0% of women were offered paid maternity leave beyond what’s covered by short-term disability which is a decrease from 17.0% in 2010. To get a better look at the United States maternity leave policies the website also looks at other countries policies in comparison. Australia’s Paid parental leave (government funded) began January 1, 2011 and gives mothers up to 18 weeks paid at the national minimum wage. In China, the minimum length of maternity leave was increased in May 2012 to 98 days. On January 1st 2007, Germany replaced a much less generous system called Erziehungsgeld with their new maternity leave system called Elterngeld. Elterngeld offers a 67% replacement rate of previous labor earnings (from employment or self-employment) for either father or mother up to Maternity leave and economic impact 5 12 months postpartum. If both parents participate they are able to receive an extra 2 months. The resulting total leave of 14 months can be freely distributed between the two parents. Single parents can receive a total of 14 months alone. The transfer is truncated at a maximum of 1800 Euros per month, and a flat rate minimum of 300 Euros per month is paid to every parent who has no previous earnings. In Russia, the maternity leave is mandatory and women receive 140 days, 70 of which are to be taken prior to birth, with 70 taken after birth, with up to 100% of salary at a ceiling. In the UK, women receive 26 weeks of Ordinary Maternity Leave and 26 weeks of Additional Maternity Leave. The combined 52 weeks is known as Statutory Maternity Leave. A recent amendment makes it mandatory for women to take a minimum of two weeks’ maternity leave immediately after childbirth (four weeks’ minimum for factory workers). Pregnant employees are also eligible for a Sure Start Maternity Grant which is a one-time, taxfree payment that is offered to low-income mothers to purchase supplies for the baby and does not have to be paid back. Poland lies in the very center of Europe. It is twice the size of the state New York containing approximately 39 million people. Much like the United States, Poland is a democracy, a republic, and a member of NATO (the North Atlantic Treaty Organization) and a member of EU (the European Union). Its people vote in general elections for a President, and Representatives to the Sejm and Senate, which are equivalent to the two Houses of the US Congress. According to nationencyclopedia.com It is estimated that over 96% of Poles are nominally Roman Catholics. However, a 2001 poll indicates that only 58% of the entire population are active practitioners of their chosen faith. About 509,500 people are registered members of the Orthodox Church, 123,000 are Greek Catholics, 122,757 are Jehovah's Maternity leave and economic impact 6 Witnesses, and 87,300 are Lutherans (Augsburg). Other established Christian denominations include Old Catholic Mariavits, Polish-Catholics, Pentecostals, Seventh-Day Adventists, Baptists, Methodists, the Church of Christ, Reformed Lutherans, and the New Apostolic Church. The Muslim Religious Union has about 5,123 members. About 5,043 people are Hare Krishnas (2013). According to OECD.org, 56.4% of households in Poland are two parent families. 12.6 % of households are sole single parent. Of these households, 87.9% of which are sole single mother while 12.1% are sole single father. Poland’s divorce rate is 1.2 divorces per 1000 residents which is relatively low compared to other European countries. Also, 59% of people aged 15 to 64 in Poland have a paid job. Approximately 66% of men are in paid work, compared with 53% of women. People in Poland work 1939 hours a year and approximately 7% of employees work long hours. The maternity leave in Poland (before and after birth) is twenty-four weeks with 100% of wages paid. 14 of these weeks are obligatory. Up to two weeks can be used before the anticipated date of birth and four weeks are referred to as additional maternity leave. In the case of infant death there is eight weeks. In Poland, there are rights against unfair dismissal as well as social welfare rights (avoidance of night work; business trips; right of transfer [of position and compensation if lower pay entitlement]; right to medical visits; paid maternity leave; extended work breaks after the birth). According to Warsaw Business Journal “They say that, according to data from the Central Statistical Office (GUS), three quarters of women aged 25-34 do not work because they are tending to a household and raising a child. The sociologists say respondents are not returning to work because they fear getting fired, demoted, or being unable to juggle domestic and professional responsibilities” (2010). Maternity leave and economic impact 7 The United States is located in North America, bordered on the west by the Pacific Ocean and to the east by the Atlantic Ocean. Along the northern border is Canada and along the southern border is Mexico. The United States contains 50 states as well as the District of Columbia. The United States is the world’s third largest country in size and in population. It is more than twice the size of the European Union. In 2012, the United States population was 313,847,465 people. The type of government in the United States is Federal Constitutional Republic. 78.4% of adults in America are Christian while 51.3% are Protestant and 23.9% are Catholic. 51.7% of households in the United States are couple families while 9.2% are sole family household. Of these, 77.5% of households were sole single mother and 22.5% were sole father households. There are 3.4 divorces per 1,000 population according to statisticbrain.com (2012). According to bls.gov in the United States there were 75,555 men who are ages 16 and over in the year 2012 obtaining a job while there were 73,402 men ages 20 and over obtaining a job. There were also 66,914 women in 2012 who were ages 16 and older who obtained a job as well as 64,640 women ages 20 years and older who obtained a job. According to the American Pregnancy Association Maternity leave is usually created from a variety of benefits that include sick leave, vacation, holiday time, personal days, short-term disability and unpaid family leave time. It is important to plan your maternity leave so that you and your family do not experience any unexpected financial challenges and you can make the most of your time with your baby (2013). The website goes on further to explain The Family and Medical Leave Act (FMLA) is a law that requires most companies to allow their employees up to 12 weeks of unpaid family leave time Maternity leave and economic impact 8 after the birth of their child. The FMLA applies to both men and women and is also available for those that adopt a child. If the parents work for the same company, the 12 weeks is then divided between the two of them and is an accumulation of both of their time(i.e.,. each could take 6 weeks off; one could take 4 weeks while the other takes 8 weeks). There are exceptions to the FMLA which release a business from the obligation of allowing unpaid time off. These exceptions include thesize of the company (less than 50 employees), the time of employment (at least 12 months), and level of wages (top 10%). Employees’ within comes that account for the top 10% of wages for the business may not have access to the unpaid benefit if the company can show with evidence that your absence creates significant financial harm to the organization. Some states have family leave acts that are broader than the federal mandate (American Pregnancy Association, 2013). A 2008 report from the Families and Work Institute indicated that 16% of companies with at least 100 employees provide full pay during maternity leave. This is down from 27% in 1998. Even for those who get some compensation during maternity leave, the norm for most women tends to be a patchwork of unused sick or vacation days. And since the majority of women can't afford not to work for a full three months, they also tend to return to work sooner than the law dictates. Perhaps that's why in May 2008, the U.S. Census Bureau reported that 55% of first-time mothers were working six months after giving birth. In the early 1970s, only 25% were working 6 months after childbirth (Forbes.com, 2013). Maternity leave and economic impact 9 In Karen Sternheimer’s book Everyday Sociology reader, Janis Inniss also discusses in her section about social institutions taking care of America’s babies. She elaborates her statement by stating that starting the late 1990’s, between 60% and 80% of women who worked during pregnancy returned to work three to twelve months after having their first babies leaving their babies to be taken care of by sitters or centers. Inniss further explains that the United States and Australia are the only two industrialized countries globally that do not give their employees paid maternity leave. However, she expresses how Australia receives 52 weeks of unpaid maternity leave to all working women. This is compared to the United States that leaves only eligible women twelve weeks. The Family and Medical Leave Act passed in 1993 allows American workers job security when they must attend to family and medical care needs. Once workers have met all of the FMLA criteria, employers cannot deny their employees the FMLA leave as well as they are unable to use such leave for reason of termination. However, the FMLA does not apply to all American workers. The FMLA does not apply to employers of fewer than 50 employees. Therefore, leaving many employees who work in smaller companies to return to work when their children are just a few weeks old because few sick and vacation days available. Working mothers can be classified into two different groups: mothers and laborers. These women face identity conflict much like groups discussed in Daniel Chirot’s Contentious Identities (2011). The women must decide what is more valuable to them: raising their babies while struggling to support their own family because of issues at work related to their maternity leave or going back to work to support their family but not being able to help raise their family. Either situation is stressful and has a negative effect whether it be economical or emotional. I think the best way to understand how women’s economic position are impacted by maternity leave through further research. Such research may be more surveys and statistics that Maternity leave and economic impact 10 can be found and are more recent. Also, it research can be done to find the opinion of whether women should be receiving paid maternity leave and if so, how much and for how long? That is going to be the best way in understand what is going to be beneficial for mothers and for the companies that employ working mothers. Once research is done, polices can be crafted better to help improve maternity leave for mothers and for employers. Maternity leave and economic impact 11 Works Cited American Pregnancy Association. 2013. http://americanpregnancy.org/planningandprepar BLS.gov. 2012. www.bls.gov/cps/cpsaat09.htming/maternityleave.html Brown, Heidi. 2009. http://www.forbes.com/2009/05/04/maternity-leave-laws-forbes-womanwellbeing-pregnancy.html Catalyst. 2013. http://www.catalyst.org/knowledge/family-leave-us-canada-and-global Chirot. Daniel. 2011. Contentious Identities. Routlage. New York and London. Encyclopedia of the Nations. 2013. http://www.nationsencyclopedia.com/Europe/PolandRELIGIONS.html Forbes.2009. http://www.forbes.com/2009/05/04/maternity-leave-laws-forbes-womanwellbeing-pregnancy.html OEDC Family Database. 2010. http://www.oecd.org/els/soc/41919509.pdf Statistic Brain. 2012. http://www.statisticbrain.com/u-s-divorce-rate-statistics/ Sternheimer, Karen. 2010. Everyday Sociology Reader. W.W. Norton and Company. New York and London. Urban-Klaehn, Jagoda. 2013. http://culture.polishsite.us/articles/art138fr.htm Warsaw Business Journal. 2010. http://www.wbj.pl/ Maternity leave and economic impact 12