A universal paid maternity leave scheme could save employers millions of dollars in staff turnover and retraining costs, the ACTU says.
The union body says Australia lags behind most of its trading partners in the Organisation for Economic Cooperation and Development and can no longer afford not to have the leave.
ACTU president Sharan Burrow will launch its submission to the Productivity Commission today at a breakfast at the National Museum of Australia to support the push for paid maternity leave. Last week, Sex Discrimination Commissioner Elizabeth Broderick told a commission hearing that government-funded 14 weeks' paid leave on the minimum wage should be expanded after two years to one year, with four weeks available as an option if the woman's partner wanted to take paid leave.
The ACTU, along with employer representatives, the Australian Industry Group, and the Human Rights and Equal Opportunity Commission, are campaigning for 14 weeks of paid maternity leave as the national minimum standard.
While the availability of paid maternity leave has increased in Australia over the past seven years, it is still relatively rare in the retail and hospitality industries, which are dominated by women.
A study issued yesterday by the Federal Government's Equal Opportunity for Women in the Workplace Agency said 48.9 per cent of women in the workforce had access to paid maternity leave in 2007, compared with 23.7 per cent in 2001.
But it said 51 per cent of employers did not provide paid leave, particularly in the retail and hospitality industries.
Ms Burrow said the cost to employers was in the tens of thousands of dollars to replace each staff member with a few years' experience.
Figures produced by Women Lawyers Victoria estimated the cost of replacing a fourth-year lawyer was $61,400 for a small law firm, $71,600 for a medium-sized firm and $145,000 for a large law firm.
Ms Burrow said research also showed the cost to the retail industry of staff turnover was $397 million, including training replacement staff, lost productivity, recruitment and separation costs.
When staff left to have a baby without paid maternity leave, they lost their link to their job, with many women dropping out of the workforce altogether, losing their professional skills and knowledge.
''The same studies show women are more likely to return to work, and to the same workplace, after a decent period of paid leave of at least 14 weeks,'' Ms Burrow said.
''The experience of some of Australia's more progressive employers bears this out. The Holden Car Company is reporting a 90 per cent rate of women returning to work.''
Equal Opportunity for Women in the Workplace Agency director Anna McPhee said paid maternity leave was important to help mothers to fully recuperate after birth, as well as supporting their continued engagement in the workforce and reducing turnover costs for employers.
''This saving far outweighs the cost of paid leave. In addition, increased attachment will improve gender equity by raising women's total workforce participation,'' Ms McPhee said.
The Rudd Government directed the Productivity Commission inquire into paid maternity leave earlier this year and it will not report finally until next February.
Australian Democrats senator Natasha Stott Despoja, who will also speak at today's breakfast, said working women would expect decisive action from the Government once the commission handed down its final report.
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