IAG Offers Aussie Mums Who Return to Work Double Pay
By Vittorio Hernandez | April 16, 2012 3:40 PM EST
The Insurance Australia Group (IAG) offered on Monday a generous package, called The Welcome Back Payment, to Australian mother who would go back to work after birth. IAG promised to double the wages for the first six weeks after they return to work.
It is part of a 20-week paid maternity leave at the company in which they will receive 14 weeks standard paid leave and the remaining 6 weeks would be paid double. By combining the scheme with the federal governments paid parental leave of 18 weeks that would mean female employees of IAG, which owns also CGU and NRMA Insurance, would receive almost one year's salary while they are off from work and taking care of children.
IAG Chief Executive Mike Wilkins said the incentive seeks to encourage working mums to go back to work. Since multitasking is a corporate culture in IAG, he said mothers would fit well into the organization because they are the ultimate multitaskers.
"We were finding that some women after having a child were dropping out of the system, which is not what we want.... We found that women who were going on maternity leave were saying 'It's difficult for me to come back or if I do come back it's quite difficult to be there,'" The Australian quoted Mr Wilkins.
Female employees of IAG, who comprise more than half of the company's 10,000 workers, hailed the new scheme because it would make life easier for them. Between 500 and 600 IAG employees go on maternity leave every year.
Australian Confederation of Trade Unions President Ged Kearney described the move as a major advance for female workers. She urged other Aussie firms to follow IAG's lead. Federal Minister for Families Jenny Macklin encouraged Australian companies to provide decent paid maternity leave.
"We want paid parental leave to be seen as a normal part of working life, and with businesses like IAG, it's clear that we will achieve our goal," The Herald Sun quoted Ms Macklin.
The generous package is a first in Australian's finance industry. Insurer QBE offers 12 weeks of parental leave, while Westpac and Commonwealth Bank have 13 and 12 weeks. The average in the finance industry is 13 weeks, but the national average is only 9.5 weeks.
"If we can also reduce some of the turnover that we've had, particularly in our middle management ranks, and get the opportunity to promote more people into senior ranks, I think it will pay for itself," Mr Wilkins added.
The package is part of IAG's target for women to make up one third of senior managerial posts by 2015. IAG initially had 25 per cent female senior managers but has upped the percentage to 28 per cent.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- Japanese Whalers End Pacific Hunt with 115 Whales Dead and No Disruption from Sea Shepherd
- Viral Video Cyring Sadie: 5-Year-Old Little Girl Does Not Want Her Baby Brother to Grow Up [WATCH VIDEO]
- 'Watch the MH17 Plane Missile Hit Video Tape in Mobile' Goes Viral on Facebook
- Australia Ranks High in Human Development Index But Scores Low in Climate Change
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date
- 5 Food Scandals That Shocked The World
- Iran Leader Asks Muslims to Supply Arms to Palestine, Calls Israel ‘Rapacious Wolf’