Parental leave top-ups push way into contract negotiation spotlight

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This article was published 20/08/2024 (472 days ago), so information in it may no longer be current.

A recent Manitoba lawyers contract came into force without the parental -leave financing union negotiators were seeking.

The case highlights the regularity of unions fighting for post-natal benefits amid Canada’s current employment insurance system, according to one labour professor.

The Legal Aid Lawyers’ Association had sought to increase parental-leave top-up pay in its newest contract, association president Gary Robinson wrote in a Free Press letter to the editor last week.

The federal government covers a portion of a worker’s usual pay when they leave to care for a newborn or newly adopted child. Payment is broken into maternity leave and parental leave; the latter is often used after maternity. Just one-third of Canadian employers offer top-up pay for parental leaves, a 2021 Aon survey found.

“We were met with unexpected resistance,” Robinson wrote of contract negotiations.

Legal Aid Manitoba provides free and low-cost services to low-income clients. It operates at arm’s length from the Manitoba government and bargains its collective agreement with the province.

In his letter, Robinson called the top-up pay opposition “counterintuitive,” given the province’s goals of population growth.

“If we are to truly prioritize the well-being of families and encourage population growth, it seems essential that our policies reflect a commitment to supporting parents during one of the most critical periods of their lives,” Robinson wrote.

He was unable to comment further when reached.

Adam King, a University of Manitoba labour studies professor, considers the new Legal Aid Lawyers’ Association contract “somewhat strange.”

Members receive a top-up for a maternity leave — covering roughly four months post-partum — but not parental leave, which can begin once maternity leave ends.

“Typically, if you have a top-up on one, you have a top-up on both,” King said.

There’s been a long-standing demand from Canada’s labour movement to reform the country’s employment insurance program and “make it more generous,” King added.

“Because employment insurance in Canada is relatively stingy … you have this problem of unions trying to negotiate benefit top-ups.”

Some people can’t afford to stay home with their baby on the government’s employment insurance alone, King added: “That’s obviously a bad thing for family care and work-life balance … A top-up allows employees to access their job protected leave.”

Legal Aid Manitoba referred a reporter to the province’s Workforce Relations branch, which refused to comment on the contract.

The Manitoba Association of Crown Attorneys has top-up pay for members on maternity and parental leave. The parental top-up came roughly 10 years ago through an interest arbitration award, Finance Minister Adrien Sala wrote in a statement.

He declined to comment on Legal Aid’s contract, adding the New Democrats believe “the best deals are reached at the table.”

The feds can pay 55 per cent of a worker’s salary, up to $668 weekly, during a 15-week maternity leave. (Manitoba’s Employment Standards offers up to 17 weeks of job-protected maternity leave.)

Parental benefits, which differ from maternity, are offered to both parents. Couples can take a collective 40 weeks off, receiving 55 per cent of their previous earnings, up to $668 weekly; alternatively, they can choose to share 69 weeks and get 33 per cent of their previous earnings, up to $401 per week.

Manitoba’s Employment Standards covers 63 weeks of job-protected parental leave.

Canada’s post-natal benefits surpass the United States, where there’s no universal paid job-protected maternity leave. Federal employees in the U.S. can take up to 12 weeks of paid parental leave.

Still, several European countries outshine Canada, King noted.

Sweden offers 480 days of paid parental leave when a child is born or adopted, its government website touts. Should there be two parents, each get 240 days paid; 195 days from each includes 80 per cent of the worker’s salary (to a cap).

Private-sector companies can’t always offer parental-leave top-ups, Manitoba business advocates highlighted.

“It’s a tough time to be a small business,” said Brianna Solberg, Canadian Federation of Independent Business director of legislative affairs for the Prairies and northern Canada.

Companies generally face higher operating costs and increased debt, she continued.

“Given the tight labour market, small-business owners are doing all they can to attract and retain employees … but many businesses lack the financial capacity to go too far down these roads.”

Small enterprises sometimes work out arrangements with expecting employees, Solberg added.

Companies often look at what benefits bring “the highest value” for staff and draw up plans accordingly, explained Loren Remillard, president of the Winnipeg Chamber of Commerce.

Parental-leave top-ups are offered among some Winnipeg businesses, but it’s not a widespread practice, he added.

“Any benefit you offer, once you start, you need to be able to ascertain … whether you can continue to offer that benefit, even in difficult financial times,” he said. “There’s the expectation that it will continue.”

Benefit packages play a key role in employee recruitment and retention, he noted.

gabrielle.piche@winnipegfreepress.com