One of the biggest worries – apart from the cost to the economy – of extending maternity leave across Europe to 20 weeks looks to be discrimination in employment.

Out of the 27 EU countries, Malta is one of only three where the full cost of this leave is borne by the employer, something which the Malta Employers Association has lambasted. President Joe Farrugia remarked that in EU countries aside from Malta, the UK and the Netherlands, maternity leave comes out of the health or social security budget, the funds of which are contributed to by both employer and employee.

While no one can argue that time for mother and baby to be together is of paramount importance, one cannot ignore the fact that it might create discrimination against women – especially younger ones – seeking employment.

While it is illegal to advertise for staff of a particular sex, there is absolutely nothing to stop an employer from engaging the services of a male, rather than a female. The reason is simple. Under the new rules – which are yet to be rubber stamped during next week’s summit, and then have to be implemented by national parliaments – men will be entitled to two weeks leave, while women will be entitled to 20.

If the employer is to bear the cost of those 20 weeks leave, many would simply employ a man over a woman. This would seriously impact on Malta’s (very slow) drive to get more women to work – and to stay in work after having a baby. The government tried to incentivise women to return to work after having a child by offering a tax holiday.

Looking at the matter from an economic point of view, the Malta Business Bureau believes that extending maternity leave in Malta by six weeks to 20, would cost some €12m per year. PL MEP and economist Edward Scicluna disputes that figure, saying that it would cost some €5 million.

Let us be straight – the rights and salaries of Maltese workers are behind those of our European counterparts, and employers had it good for years. But things have improved over time and protectionism has given way. Employers are forced to make their businesses viable, to pay their own way (especially in regard to utility bills) and to ensure employee rights. In fact, the government has come down rather hard in recent times. But this is clearly going to be a burden on businesses and companies. For many, it might be the straw that breaks the camel’s back.

Others might be able to absorb it, but it is clear that some type of reform is needed. One cannot implement such a measure without providing the necessary safeguards to ensure that it will be sustainable.

What is certain is that there will be a raft of meetings between the relevant representative associations and the government. One must also await the outcome of the summit to see if the raising of the bar will in fact be endorsed by EU heads of state. Malta is expected to make an objection, especially in view of the PN’s (in government) position, which was to increase leave to 18, and not 20 weeks.

Once this becomes law, employers will be obliged to pay it, and this is where we fear that discrimination will creep in. These are very strange times for Europe. Austerity measures are in full swing, yet due to our own bizarre national system of maternity leave, we will in effect increase direct costs…