Family Friendly Firms' Financial Fears

Companies within the printing industry could face a significant financial burden if the UK government goes ahead with proposals for extending its family friendly policies, Picon has warned.

Companies within the printing industry could face a significant financial burden if the UK government goes ahead with proposals for extending its family friendly policies, Picon has warned.

Picon is the business support organisation for UK suppliers and manufacturers in the printing, publishing and paper converting industries.

A survey by the Engineering and Machinery Alliance (EAMA) of which Picon is a founder member, has concluded that government proposals to extend maternity leave could, in future, cost the average SME double the current GBP5,000 - GBP14,000 involved in getting replacement cover.

The government's proposals include the extension of paid maternity leave, first to nine months and then to 12, as well as giving mothers the right to share their leave entitlements with the child's father.

In addition, the right to flexible working will be extended will be introduced as well as getting mothers who are on leave to inform their employer earlier about their return to work date.

The EAMA report entitled 'Turning a good idea for the family in to a practical idea for manufacturing employers' is based on companies' experiences.

It concludes that the proposed extensions could cost small companies GBP10,000 - GBP28,000 a year per case, depending on the skills set required.

Picon's chief executive, John Brazier, said: "Currently firms use a range of measures to lessen the impact of the absence on the business, such as taking on temporary workers, sharing work amongst existing staff, training and changing work procedures.

Paternity leave is far easier to handle at the moment because it is much shorter, currently just two weeks.

But when the government's plans to lengthen leave become reality companies may well have to redouble their efforts.

And this will have a big impact on an industry like printing, which is dominated by small companies." The report also concluded that the proposals will create problems with existing employment law in two ways.

The first consequence will be to reduce the appeal of the manufacturing sector for women.

EAMA's chairman Graham Hayes pointed out that SME engineering and manufacturing companies are not popular career path choices for young women leaving university.

"In fact, the typical employment profile for most SME companies in the sector is overwhelmingly male, and beyond childbearing age.

I can see that many companies will feel that these additional complexities force them to carry on recruiting in a similar vein," said Hayes.

The second unintended consequence under current employment law is that the 12-month extension will enable temporary workers to claim permanent employment status.

Overall, the report shows that six in 10 companies affected by maternity leave have to take on a temporary worker for the period.

Amongst small employers (with less than 50 people) that rises to three in four firms, said Picon.

Amongst all companies taking part in the survey, the extension of maternity leave to 12 months is seen as having the biggest impact on business.

However, when the data are de-aggregated by company size, EAMA concludes that large manufacturers are much more concerned about the extension of flexible working rights to parents and carers, added Picon.

There is little understanding just yet as to how transferring some of the mother's leave entitlement to the father would work in practice and companies therefore find it difficult to assess what sort of an impact that proposal will have on their businesses, said the report.

Picon added that not all the issues are negative to business.

The government proposes that new mothers should give earlier notice of the date when they will return to work.

Over 80 per cent of firms see that as making a difference, albeit a small one.

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