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1.

MATERNITY LEAVES

At present, almost every country has provisions for maternity leave that provided to the female employees. Most industrialized countries have some form of maternity or parental leave policy that effectively grants employment protection to women around childbirth and in some cases to either parent for an even longer period after childbirth (Puhani and Sonderhof, 2009). Maternity leaves are the temporary leaves that allowed by the company or institutions to a female employee for delivering and taking care a baby with the full salary payment. Bourne and Lentz (2009) indicates that Maternity leave is the time away from paid employment for mothers to recuperate from childbirth or adoption and care for their new child. This maternity leaves is important to ensure the health of a baby, recovering process for a mother and also the time to manage a baby welfare and nursery before a mother ready for coming back to work.

However, the duration or the provisions provided for the maternity leaves by one country is different from another country and it had become the major concerns in the world regarding the minimum length of the maternity leaves that enough and sufficient for a mother and baby before return back to the work. The country around the world views that maternity leaves as a women privileges for the childbearing roles and contribute to the population in the world. The duration of maternity leaves are relying to the governments policy in one country on how they manage and handle the maternity leaves as the employment act in their country.

The International Labor Organization (ILO) is the International organization responsible for drawing up and overseeing international labor standards. Protecting maternity has been among the first concerns of the ILO and they are responsible to review the employment protection for female workers in the international level. In 1919, the first Convention on maternity protection (Convention No. 3) was adopted during the first International Labor Conference (ILC). This Convention was followed by two others: Convention No. 103 in 1952 and Convention No.183 in 2000, which progressively expanded the scope and entitlements of maternity protection at work.

In 2010, ILO suggested that the minimum length of maternity leaves should be at least 12 weeks and they recommend the best maternity leaves are 14 weeks. 183 of ILO member countries already practice with minimum standard of maternity leaves and fewer than 30 countries do not practice the minimum length of maternity leaves. ILO review the policy that helps to protect the workers rights especially in terms of maternity leaves that important to female employees around the world. O the other hand, the country needs to study and investigate the suitability and compatibility of policy to their current situation before they implement such policy in their country.

2.0

BACKGROUND OF MATERNITY LEAVES IN MALAYSIA

Previously in Malaysia, the duration of maternity leaves is 60 days that was equal to 8 weeks. The provision of this maternity leaves are effectively practiced by the both sectors which are public and private sector. The government had enacted the Employment Act 1955 in the Section 37(1) (a) and (b) has stated about the length of eligible period as not less than 60 consecutive days in respect of each confinement. A female employee is entitled to commence her maternity leave at any time during the 30 days immediately preceding her confinement or not later than the day immediately following her confinement. According to Employment Act 1955, the employers need to bear the salary for maternity leave up to five surviving children for the female employees with the full salary.

Historically in 2007, the issues of the duration of maternity leaves had been brought by The Minister of Women, Family and Community Development Datuk Seri Shahrizat Abdul Jalil, she had presented the issue of the extension of maternity leave from 60 days to 84 days in the cabinet for approval but this issue are not resolved and approved by government. (The Star, 2007). Even though the proposal to increase the duration of maternity leaves was not approved by government, Datuk Seri Shahrizat Abdul Jalil still deliberately review and propose the provision of 90 days maternity leaves in the cabinet.

This issue also had attracted the attention from the union of employees in Malaysia, the union forces the government to increase the duration of maternity leaves from 60 days to 90 days follow the minimum duration of maternity leaves as suggested by the International Labor

Organization (ILO) . In 2010, this issue continuously to arise when National Unions Bank Employees (NUBE) launched the campaign to gain the support from the public for extends the maternity leaves from 60 days to 90 days for female workers in private sectors. They managed to acquire 1 million signatures that support their campaign of 90 days for Mom. (The Star, 2010).

Due to the forces from the employees union and the Minister of Women, Family and Community Development, on 15 October 2010 Prime Minister, Datuk Seri Najib Tun Razak had presented during the 2011 budget at Dewan Negara announced that government had decided to make consideration by extending the 90 days maternity leaves, however this extended of 90 days maternity leaves was only effective to the female civil servant. (New Straits Times, 2010). The government had implemented the 90 days maternity leaves starting from a year of 2011 and the female civil servant can apply for the 90 days maternity leave but the government yet still not amend the provision of maternity leaves in the Employment Act 1955.

Again In December 2010, Women, Family and Community Development Minister ,Datuk Seri Shahrizat Abdul Jalil had announced that her ministry is in the midst of formulating a cabinet paper to increase maternity leave from 60 to 90 days for the private sector. (The Malay Mail, 2010). This issue was against by private sector, they are hesitant about the implementation of 90 days maternity leaves, and there are many objections from the company in the private sectors especially from Malaysian Employers Federation (MEF). executive director Shamsuddin Bardan claimed that, Malaysian Employers Federation

the additional 30 days would cost

employers an extra RM1.2 billion yearly and currently employers had spent some RM2.4 billion

yearly in order to cover the cost of paid salary for 60 days maternity leave. Shamsuddin Bardan also stated that, the private sector is the engine of growth for the country. Therefore, the government should not make a move that will add to the cost of running a business in Malaysia (The Malay Mail, 2010).

In addition, Yasmin Masidi, Sisters in Islam (SIS) programme officer for media and communication cited that, government need to consider other factors and angles. It is important women are not penalized by employers for their leave and employers will feel hesitant to employ or promote a female employee because of the maternity leave." (The Malay Mail, 2010). There are many objections from the employers around the Malaysia that question the Datuk Seri Shahrizat Abdul Jalils action about to extending the maternity leaves to the 90 days. Malaysia had practiced the 60 days maternity leaves for many times and there have no complaint from the employees regarding the duration. Government needs to consider many aspect of positive and negative impact from the extended maternity leaves for all the stakeholders before implement the 90 days maternity leaves to the private sector.

The issues of extending maternity leaves had attracted attention from many parties in Malaysia including employers, employees and also among the civil servant. This issue had been discussed and become the major interest in the parliament, forums, news and blogs. Even though the government had implemented the 90 days maternity leaves to public sector, government yet still not amend the provision of maternity leaves in Employment Act 1955. The extending of 90 days maternity leaves for private sector are still pending and have not resolved until today. This paper argue whether should government implement the 90 days maternity leaves to private sector and either it is practical for Developing country like Malaysia.

3.0

COMPARISON OF MALAYSIA AND OTHERS COUNTRIES

The clear picture of how maternity leaves works in Malaysia relative to the other countries will be discussed by comparing the length, percentages of salary covered and provider of benefits among the country. The tables of 3.0.1 and 3.0.2 below shows the several provisions of

maternity leave in the developed and developing country compared to the Malaysia.

Table 3.0.1: Maternity leaves duration of Developed country

Country or area

Length leave Period

of

maternity

Percentage of wages paid in Provider of benefit covered period % Note Employer 1/8 National Treasury, 7/8 Employment Insurance Fund Employment Fund Employer Insurance

Brunei Darussalam

Weeks

100

Japan

14

Weeks

30%

Republic of Korea

90

Days

100

Hong Kong

10

Weeks

80 100

Denmark

52

Weeks

Municipality and Employer

France

16

Weeks

100

Social security Statutory health insurance scheme, state, employer Social Insurance Fund

Germany

14

Weeks

100

Russian Federation

140

calendar days

100

Singapore

12

Weeks

100

Employer and Government

Source: United Nations Statistic Division, 2010

Table 3.0.1 shows the provisions of maternity leaves among the developed country in Asia. Indicates that most of the developed countries in Asia follow the minimum length of maternity leaves as suggested by ILO. Japan, Korea, Hong Kong, Denmark, Singapore, France, Germany and Russian Federation offer the maternity leaves over the minimum length. However, Brunei Darusslalam did not follow the minimum duration as suggested by ILO and only offer maximum of 9 weeks to the female worker with fully paid salary and the salary was fully paid by employers. Singapore provides 12 weeks or 3 months maternity leaves to their working women. The first 8 weeks was paid by employer and the last 4 weeks funded by the Government however, employers only bear the 8 weeks salary up to 2 surviving children only and Government was responsible to bear the full salary of 12 weeks for the third and subsequent birth.

Korea provides the 90 days maternity leaves with full salary to the female workers but the salary was funded by employment insurance fund. Japan also provided the maternity leave over the minimum length to their female workers as much as 14 weeks but they only paid 30% of salary and it funded by National Treasury and Employment Insurance Fund. On the other hand, certain country likes Denmark, Russian and France offered the very long maternity leave to the female workers. Denmark offer 52 weeks of maternity leaves to the female workers but after the 32 weeks of leave period it may be divided freely between both parent and the salary was borne by Municipality and employers. Meanwhile, Russian provides the 140 days and the salary was fully funded by social insurance fund. France provides the 15 weeks to the female workers and the salary also was paid by social security.

Table 3.0.2: Maternity leaves duration of Developing country

Length leave: Country or area

of

maternity

Percentage of wages paid in covered period Provider of benefit

Period Weeks

Note

% 66

Note

Myanmar

12

Social security

Malaysia

60

Days

100

Employer Employer and Social insurance system Employer

Thailand

90

Days

100

Cambodia

90

Days

50

Philippines

Weeks

100

Social security or employer

Indonesia

Months

100

Employer

India

12

Weeks

100

Employer

China

90

Days

100

Social insurance

Source: United Nations Statistic Division, 2010

The table 3.0.2 shows the length of maternity leaves in certain developing countries such as Myanmar, Malaysia, Thailand Cambodia, Philippines, Indonesia, India and China. For example, Thailand provides 90 days of maternity leaves to the employees with full paid. Under the Labor Protection Act of Thailand, an employer is required to pay an employee for up to 45 days of maternity leave and the rest of the maternity payment which is another 45 days was paid by the Social Insurance System. Myanmar and Cambodia also provide 12 weeks maternity leave to the female workers but only 66% salary payment that funded by Social Security in Myanmar and only 50% salary payment that paid by employer in Cambodia.

In addition, Indonesia and India also provide 3 month of maternity leaves to the female workers with fully paid salary that bears by employers. Philippines only provide 6 weeks maternity leaves to the female workers with fully paid salary that can be paid either by employer or Social Security. In term of our country, Malaysia provide 60 days maternity leaves to the female workers with fully paid salary that solely paid by employers compared to the most countries that funded by the social security and shared between government and employers.

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As stated in tables 3.0.1 and 3.0.2, most of the developed and developing countries excluding Malaysia offer the long maternity leaves to the female workers over the minimum length that suggested by ILO. However, most of developed and developing countries have their own social security fund or social insurance fund that used to fund the cost of all the salary that paid to the female workers while they in the maternity leave. By using this fund, employers are not really burdened with the huge cost. Unlike in Malaysia, the cost are solely bear by employers and this was really burden the employers and incur the huge expenses for the company and reduce the growth and profit for the company.

Malaysia is developing country that plan to heading towards the developed country in the Vision 2020. For the developed country, they have the high Gross Domestic Product (GDP) rather than developing countries, means that they already have a high productivity and human capital in the country. They are able to give the long maternity leaves to the female workers because they are already stable and high in the productivity and human capital. The developed countries afford to give the long maternity leaves because high GDP also indicates that the company profit and growth relatively high in developed countries rather than developing countries. This support the reason why the most of developed country afford to give the long maternity leaves to their female workers and the negative effect of long maternity leaves are not really affecting their economy development. For a developing country like Malaysia the extended maternity leaves to the 90 days will definitely slow the productivity and profit for the company and thus will slower our GDP growth and development.

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Furthermore, Puhani and Sonderhof (2009) indicate in their study that from a labor perspective, employment protection through maternity leave might increase the attachment of mothers to their employer or the labor force in general. It may also have the opposite effect in that maternity leave combined with maternity benefits can be seen as a subsidy to leave the labor market temporarily with potential long-term consequences. The effect of prolonged parental leave on the human capital investments of women of working and childbearing age is relatively negative. In contrast, the mean ratio of female to male labor force participation for countries that mandate at least 14 weeks of maternity leave as suggested by ILO is 77.3% compared to 65.3% for countries that do not follow the minimum length of maternity leaves (Newton, 2011). This finding contradict with the findings of Puhani and Sonderhof (2009), the government needs to review and investigate the relevant facts and figures in order to determine the decisions on whether the government should implement the extending maternity leaves to 90 days in private sectors.

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4.0

90 DAYS MATERNITY LEAVES AND MALAYSIA

Malaysia is a developing country that consists of 14,196.2 million female populations out of 28,908.8 million of total population. The age that entitled to enter the workforce in Malaysia was as early as 15 until the age of 64 years old. Department of Statistics Malaysia (2010) found that, the percentage of female participation in workforce for a year of 2010 was 46.0 % out of 9,039.4 million. Meanwhile, for male participation in workforce was 78.9 % out of 9,355.2 million. Table 4.0.1 shows the details about the population of Malaysia workforce.

Table 4.0.1: Population of Malaysia Workforce

AGE 0-14 15-64 65 AND ABOVE TOTAL POPULATION

MALE 4,723.8 9,355.2 633.6 14,712.6

FEMALE 4,441.2 9,039.4 715.6 14,196.2

NO.OF POPULATION (000) 9,165 18,394.6 1,349.2 28,908.8

Source: Department of Statistic Malaysia, 2010 Female employees have a privilege to get a benefit from the maternity leaves and Malaysia had enacted the maternity leaves as a one Womens right and employers need to obey this law. Malaysia had enacted the maternity leaves in the Employment Act 1955 that are compulsory to followed and practiced by the all company or organization. The extending of maternity leaves to 90 days was questioned by many party either the government should implement it in the private sector. As reported earlier in this paper, the government had implemented the 90 days maternity
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leaves for the public sector effectively in a year of 2011. The government need to bear the extra cost of another 30 days and this directly has an effect on governments expenditure. This really needs a huge expenditure by government every year in order to support the salary of the mother during the maternity leaves.

The relevant of whether should government implement the 90 days maternity leaves to private sector in Malaysia can be holistically viewed by discussing the advantages and disadvantages of this long maternity leaves to the involve stakeholders which are Female employees and baby , Employers, and also the country itself. This paper will discuss on each stakeholders that will give the clear picture whether should government implement the 90 days maternity leaves in private sector.

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4.1

ADVANTAGES OF 90 DAYS MATERNITY LEAVES IN MALAYSIA

Advantages of 90 day maternity leaves can be divided into 3 categories which are advantages for female employees and baby, advantages for employers and advantages for the country.

4.1.1 ADVANTAGES FOR FEMALE EMPLOYEES AND BABY

The 90 days maternity leaves will encourage the participation of female employees to enter the workforce because it helps them to reconcile work and family life. By extending the 60 days to 90 days maternity leaves, the female will be more encourage a to participate in to the workforce in Malaysia. They feel secure because there will be enough time for them in order to reconcile between work and their newborn. This was supported by Zveglich and van der Meulen Rodgers (2003), Job-protected, paid maternity leave in Taiwan has been shown to increase womens labour input (employment and hours) by about 7 percent.

Besides, Kluve and Tamm (2009) also claimed that, likewise the German maternity reform, which replaced 67% of earnings for up to 14 months after birth of the child, has been shown to cause a significant increase in mothers employment probability at the end of this period. This will lead to the increase in the family income due to the increase in the female participation in workforce. The rising of family income also can lead to the increase in the family purchasing power which is good enough to support the domestic business. Other than that, this phenomenon will directly help the family to the better life with the better education for their children and better health which are good for the human capital development in Malaysia.

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Not only that, the extending of maternity leaves will help the development of health and mental of the female employees and baby. Berger, Hill and Waldfogel (2005) claimed that, maternal return to work within the rst 12 weeks of her childs life is associated with reduced breastfeeding and immunizations and increased behavior problems in early childhood. Rossin (2011) also support that, maternity leave policies also affect child and mother outcomes by increasing the amount of time a mother can spend with her child, especially in the rst year of life. The baby also becomes more immune and healthy because the baby gets the sufficient amount of nutritious milk from the mother. This will ensure that the baby early development will be protected and ensure the positive development of childhood. Carneiro, Loken, and Salvanes (2010) found that, the long term effects of a maternity leave expansion in Norway nds that children of mothers who were eligible for the leave are less likely to drop out of high school. This show that, the expansion of maternity leaves to 90 days effect the early development of baby that will directly affect the next stages of development of children.

By extending the 90 days maternity leaves, the mothers become healthier and more ready to come back to work again and to taking care of the baby and family because they get the sufficient time to recover and recuperate form the delivery. The female employees can be more productive after come back from the leaves because they get sufficient time to rests after deliver the child and also had settled down all the welfare of a baby when they come back to work. The female employees can be more focus and commit to their work and this will increase the productivity of the female employees thus, directly will contribute to the companys performance and profitability.

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4.1.2 ADVANTAGES TO THE EMPLOYERS

The extending maternity leaves also give the advantages or benefit to the employers. The extending maternity leaves can creates an attachment between employers and employees. According to Puhani and Sonderhof (2009) in their study that from a labor perspective indicates that, employment protection through maternity leave might increase the attachment of mothers to their employer or the labor force in general. By extending the 60 days maternity leaves to 90 days maternity leaves, the female employees feel the engagement with the company. The employees engagement can lead to the job satisfaction and loyalty. The female employees feel that the employers really appreciate their contribution to the company and this will lead to the more productivity and high performance of the female employees in order to generate the profitability of the company and also companys sustainability.

As supported by Heymann, Earle and Hayes (2004), the Benefits of maternity leaves can reduce the staff turnover, which can lower recruitment and training costs and improve workers productivity. When workers feel supported, they have higher levels of job satisfaction that, in turn, increase their commitment to the companys success. The female employees will loyal to the company and committed to contribute the new ideas and systems that will give the benefits to the company development. The success and high profit company definitely helps develop the economy of Malaysia and can helps Malaysia as a country that economically attractive to the foreign market in order to invest in Malaysia.

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Besides, by extending the maternity leaves the employers can reduce the other costs in the company. Giving the female employees enough time to rest and recover after delivering can increase the female employees and baby health. If the both of them in the health condition, the female employees can increase their productivity and can reduce the costs of medical expenses and the sick leaves taken by female employees because of the sickness of baby. As cited by Puhani and Sonderhof (2009), the maternity leaves can increase the employers and employees attachment. This means that, the female employees become more loyal and committed to successful of company. The high possibility the female employees to return back to the work and this will beneficial to the employers by reduce the employees turnover costs, recruitment costs for replace the new employees, and also the training costs for the new employees.

4.1.3 ADVANTAGES TO THE COUNTRY

World had realized the importance of women participation in the workforce and economy activity. Women participation in workforce can help to increase the family income thus lead to increase in economy of country. Abdul Ghani Azmi, Syed Ismail and Basir (2011) cited that women contribution is important for the development of country and developing country also feel the need for women contribution to their economy especially Malaysia. Newton (2011) stated that ensuring women can participate in the workforce on equal terms with men is important for gender equality and poverty reduction. The importance of women roles in a development of country and the women participation in the workforce had been brought to the provisions of maternity leaves as an employment protection to them around the world.

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The potential advantages if the government extending the 60 days to 90 days maternity leaves, the females is more encourage entering workforce because of they feel secured and balance between building the family and career. The participation of female employees in the workforce can ensure the gender equality and also to reduce the poverty reduction in Malaysia. This will help government to achieve the 10th Malaysia Plan, which is the government focus on to increase the women participation in the workforce from 46.1 % to 55 % in the next three years. (10th Malaysia Plan, 2010). Government put an effort in order to promote gender equality in the workforce and the poverty reduction in Malaysia.

The case of gender equality is often regard as a human rights or social justice argument, but it is a growing body of evidence reveals that gender equality is good economics as well. If the number of women participation in Malaysia which is 46.1 % increased to 70% it would boost Malaysias GDP by 29.3 %. (United Nation Development Program, 2010). The GDP for 2011 is $ 237.803 billion in U.S. dollars (The World Bank Group, 2012) and if the women participation increases to 70%, this positive growth will definitely help Malaysia to achieve the status of developed country in a year of 2020.

The relevant of government intention in order to increase the women participation to ensure that government leveraging the human capital or women talent and help the development of Malaysias economy. This will help Malaysia to achieve the Vision 2020 that had been

introduced by the Former Prime Minister of Malaysia Tun. Dr. Mahathir bin Mohamad during the Sixth Malaysia Plan in 1991. In order to achieve the Vision 2020, Mahathir estimated that the nation required an annual growth of 7% over the thirty-year periods (1990 to 2020), so that the

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economy would be eightfold stronger than its 1990 GDP of RM115 billion. This would translate to a GDP of RM920 billion (in 1990 Ringgit terms) in 2020.

Similarly, as found by Jackson, Kariem, Porteous and Harb (2010) an opportunity to increase female participation in the workforce, especially at the more qualified levels. This would increase overall national productivity, reduce dependence on expatriate skilled workers, increase family incomes (and reduce state dependency) and help raise womens esteem and sense of contribution to their countries. Other than that, as cited earlier, the extending maternity leaves give the positive impact toward the baby early development which will affect the later stages of baby development. The healthier baby will guarantee the future generations that will enter the workforce and become the generator for the future of Malaysia. The baby is the future generation and also the future human capital in Malaysia.

By giving the quality early development with the mother, the baby can become the quality human capital that will contribute to the economy development of family, company and directly to the country. The early development is very important for the baby in order to produce the educated, skilled and competencies future generations. As defined by Muhamad et al. (2011) human capital is critical to the success of the economic development in Malaysia and to transform productivity, significant improvements are required. The extending of maternity leaves can indirectly give the benefit to the country by produce more healthy future workforce, more productive female workforce that will directly contribute to the economy development of family, company and Malaysia.

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4.2

DRAWBACKS AND LIMITIONS OF 90 DAYS MATERNITY LEAVES IN MALAYSIA

The government should considering the drawback and limitations that potentially occur if the government implements the extending maternity leaves in private sectors. The drawbacks and limitations are also discussed in three scopes which are Female employees, employers and country.

4.2.1 DRAWBACKS TO FEMALE EMPLOYEES The drawbacks of extending maternity leaves from 60 days to 90 days in private sectors can be viewed in the four possibilities as followed;

4.2.1.1 RELUCTANCE OF EMPLOYERS TO HIRE THE FEMALE EMPLOYEES IN FUTURE

Iversen and Rosenbluth (2010) cited that, laws offering maternity leave for an extended period of time can hinder womens labor force participation. Such policies discourage employers from hiring women in the first place. The long maternity leaves will discourage the employers from hiring the future female Workforce. This is due to the long maternity leaves can make many problems to the company because of employees shortage and the additional cost of paid maternity leaves that currently funded by the company. By extending the 60 days maternity leaves to 90 days in Malaysia, employers will be more selective and hinder to select female candidates because employers need to bear all the full salary payment and also other indirect

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costs that incur during the absence of female employees. The employers will avoid selecting the women candidates even the women candidates is more qualified with high education than a males. They might be purposely reducing the percentage of female employees in the company possible to 20% female and 80% males.

In addition, as stated by Newton (2011), yet excessively generous policies can make employers less likely to hire women in the first place, and thus decrease womens labor force participation. This statement strongly support that the long maternity leaves will lead to the employers reluctance or discouragement for hiring the future female workforce, employers are become more selective and put more high standard and tight conditions that being unreasonable to the future female workforce. For example, employers state the certain standard likes only males wanted or only young unmarried women wanted. Thus, it will lead to the decreasing number of future female workforce in Malaysia. This matter will lead to the unsuccessful of 10th Malaysia plan that had been implemented by our Prime Minister, Datuk Seri Najib Tun Razak which is focus on to increase the women participation in the workforce from 46.1 % to 55 % in the next three years. (UNDP, 2010)

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4.2.1.2

GENDER DISCRIMINATION TOWARD FUTURE FEMALE WORKFORCE

In 10th Malaysia plan, government put an effort in order to promote gender equality in the workforce and the poverty reduction in Malaysia. UNDP (2010) suggested that, if the number of women participation in Malaysia which is 46.1 % increased to 70% it would boost Malaysias GDP by 29.3 %. However, the effect from extension of maternity leaves to 90 days will directly give a negative impact toward the future female workforce and also government plan in order to achieve to reduce a poverty in Malaysia. Because of the long maternity, employers practice the bias when they find the new employees, if the position available is suitable for both candidates for example trainee manager, the employers are more prefer to select and hire male employees.

Equal Employment Opportunity Laws (EEO), this is the Title VII of the Civil Rights Act that resolves charges of discrimination that occurs in the overall Human Resources activities or functions in the company. The HRM unit needs to comply all the HRMs activities with the laws. (Ivancevich, 2010). In Malaysia, government did not implement this type of law, the employers cannot be blame if they are reluctant to hire the female candidates, eventhough they are qualified rather than males. Moreover, Chee Din, Rahmat and Mashudi (2011) also claimed that the Article 8 of the Federal Constitution fails to provide sufficient protection to prohibit gender discrimination in Malaysia. Thus, this will lead to gender discrimination and government faces difficulties in order to achieve gender equality in Malaysia. Clearly states that by implementing the long maternity will lead to employers reluctant to hire female workers then will reduce the numbers of female workforce and finally, this matter will lead to the instability of future female

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workforce and difficulties for government in order to increase women participation and promote gender equality and poverty reduction in Malaysia.

4.1.2.3 ROTTEN

OF

FUTURE

FEMALE

WORKFORCE

MARKET

COMPETITIVENESS

Miller (2009) claimed that extended absence from the workforce for maternity leave may deteriorate labour market skills, and damage future career paths and earnings, particularly when taken early in the career. The long maternity leaves will give the negatives impact on female employees career path especially toward young female workers. They cannot gain as much as knowledge and skills while need to take a long leave due to the birth of child because they are new to the workforce market and long maternity leaves can discourage employers to better plan a training for the new female workers.

Iversen and Rosenbluth (2010) found that employers are reluctant to invest in skills of women when it is expected that they will leave the labour market for extended periods of time. Employers might think twice to invest in training and development on women when they will leave the company for the long period of time. This will give an impact toward new female employees that just started to learn and gain an knowledge and skills in order to compete in the market. This skills and knowledge are very important to ensure that they will go beyond rather than just a lower position or low management in the company.

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Puhani and Sonderhof (2009) also support that the effect on training might be negative because a very long maternity leave reduces a young females labor market attachment, at least for the duration of the leave. The extension reduced training for young women, even for those who do not have children. Employers will be less likely to invest in young females human capital and place them in career paths with less training. This statement indicates that even the employers willing to hire the young females, they will place the young females in the position that need less training. Thus, this matter will lead to the lack of competencies and lack of high position among female workers in the industry. The effect of the long maternity leaves will deteriorate the women skills, knowledge, experience and analytical thinking that needed in order to hold the position in decision making and also need to compete with the male workers that have more skills, knowledge and decision making abilities result from the useful and effective training and development program provided by the company.

4.1.2.4 LOWER EARNING OR SALARY FOR FUTURE FEMALE WORKFORCE

Vahratian (2009) found that negative effects on their wages over the long term if viewed as a temporary employee. Employers view the female employees as a temporary staff that will leave company in the long term period and this will effect on the salary that will give by the employers. They are reluctant to give the expected salary that deserve for the female employees to earn. In addition, Schonberg and Ludsteck (2007) also had estimated the negative long-run effects on wages in Germany. Means that, the extension of 60 days to 90 days maternity leaves in private sector will lead to the lower earning or salary for the future female workforce. The

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employers will differentiate the salary between males and females even they have a similar education level and standard requirements for the position that offered by the company.

Employers will deeply think the cost that will incur if they hire a female worker, the possibility that the female workforce will pregnant and leave the company for a long time. This will incur them the huge cost in a year because in Malaysia employers are responsible to cover the salary for maternity leave up to five surviving children. Employers will think about the long run cost that will be imposed by giving them full salary payment for 90 days and this must be bear by the employers up to five surviving children. The employers try to reduce cost by differentiate between males and female salary and this matter will negatively affect the income for future females workforce in Malaysia.

4.2.2 DRAWBACKS AND LIMITATIONS TO EMPLOYERS

The drawbacks and limitations for the employers are the employers will bear the huge cost due to the full salary payment for the maternity leaves. Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan claimed that, the additional 30 days would cost

employers an extra RM1.2 billion yearly and currently employers had spent some RM2.4 billion yearly in order to cover the cost of paid salary for 60 days maternity leave. Shamsuddin Bardan also stated that, the private sector is the engine of growth for the country. Therefore, the government should not make a move that will add to the cost of running a business in Malaysia (The Malay Mail, 2010). The additional 30 days of maternity leaves will incur the extra costs

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and expenditure for the private sectors in Malaysia. This will directly increase the companys costs and reduce the profitability of the company.

Likewise, the company also needs to put or transfer the extra work to the co-worker during the absence of the pregnant worker. This will lead to the overload task demand for the co-worker and can cause stress, fatigue and loss of employees productivity. (Alewell and Pull, 2005) Besides, the company also needs to find the substitutes for the task that procrastinated by the female workers during the maternity leaves. This all involves the costs to the company and to the industry as a whole that will slow the growth of company and profit due to huge expenses of paid maternity leaves and low productivity of the company. It also can lead to the low of productivity of workers that will lead to the low profitability and contribution of the company to the development of Malaysias GDP.

4.2.3 DRAWBACKS AND LIMITATIONS TO COUNTRY

Regarding the 10th Malaysia Plan, government intent to increase the female percentage in decision making position by 30%. The government will face hard challenges in order to achieve this plan; employers are less likely to invest in the training for the young women because they know that young women will leave the market for a long time. The company is reluctance to invest in the training for the female employees and they discriminate the female and male capability because of the long maternity leaves. The government also faces the challenges to increase the participation of female in the workforce as stated in the 10 th Malaysia Plan. The

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employers reluctant or hinder to hire the female employees in their company because of they consider the long term consequences on company cost and expenses.

By implementing the 90 days maternity leaves the government will give the burden to the employers, reduce the companys productivity and profitability. This will affect the to the company contribution towards the development of Malaysias economy. Aside from this, the employers reluctance to hire the female employees by intentionally practices the bias in the recruitment and purposely hire male rather than females in the company will deliberately lead to the gender inequality. Thus, the government plans to increase the women participation in the workforces in order to promote gender equality and poverty reduction in Malaysia will hardly achieved by the government. As cited earlier by Newton (2011), the increase in the female workforce can promote to the gender equality and poverty reduction in ones country which is good for the development of economy.

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5.0

CONCLUSION

The extended maternity leaves to 90 days can give the benefit and goodness to the development of Malaysias economy. The sufficient length of maternity leaves is crucial to the development of female employees and baby, the employers and most important to the development of country towards the achievement of Vision 2020. Others than the benefits or advantages, the extended maternity leaves in private sectors also has the drawbacks and limitations to the female employees, employers and also the country. The government should identify and find the solution for the drawbacks of extending maternity leaves then, the implementation of 90 days maternity leaves can also being materialize and benefited to all the stakeholders. The government should implement the 90 days maternity leaves as suggested by ILO for the private sector because the previous studies had been proven that, sufficient maternity leaves can increase the female participation in the workforce that definitely will promote to the gender equality and poverty reduction in Malaysia. As mentioned earlier, the women participation in Malaysia can boost the Malaysias GDP and directed Malaysia toward the achievement of Vision 2020. By extending the 90 days maternity leaves, the government can attract the females to enter the workforce because of the secured employment protection. Government can leveraging and empowers the females as a human capital that contributes to the development of family, company and country.

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Furthermore, the sufficient time for the mothers and baby can ensure the health of the female employees and also to build the positive early development of baby. The healthier female employees will be more productive in order to contribute to the company. As for the baby, they are the future generation or human capital, government needs to protect and preserve the right for the baby in order to ensure that the stages in their life development are better and more quality. The employers also can benefit from this 90 days maternity leaves resulting from satisfaction workers lead to productivity and companys success.

In order to implement the 90 days maternity leaves for private sector and to ensure the importance of every stakeholder in Malaysia, government needs to consider the barriers of this implementation. From the reviewing of the practices of maternity leaves in Malaysia and other countries, this paper define Malaysia solely rely on the employers contribution for the salary paid during maternity leaves. Meanwhile, most of the developing and even developed countries in Asia funded by the Social Security funds. This funds function similar to the SOCSO whereby the employers and employees make a small contribution every month. What is the most concern for the private sectors was the profitability and sustainability of the company, the Social security funds will definitely lighten the employers burden and this will offset the barriers or the drawbacks of extending maternity leaves in private sector. The females employees in the private sectors will equally enjoy this privilege and perhaps the women participation in the workforce can give the benefits to the economy development of family, the company and also for the Malaysia that directed toward the developed country in a year of 2020.

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