The state of parental (and paternity) leave in Canada (vs other countries)

I have been asked to write an editorial by my very good friend Tihomir Bajić, VP #Engineering at LTSE, who himself is a father of three (3) wonderful boys and wrote this great medium article 10 days ago titled Startup Fathers Need to Start Taking Parental Leave and then asked me to give it a Canadian spin.

In his article, Tiho talks about the impact that having #children has on women’s pay scale vs what it does to men (it’s negligible).  This is something that has hit home with my wife and I as well, as we plan to eventually have children of our own.

Also, being part of a properly woke organization helps, as Tiho goes on to explain about LTSE itself.  The team he has amassed and the communication borne out of his leadership is inspiring and many other companies could see this as an example (and Tiho’s journey as proof positive that being a “present” (early childhood) father is possible, desirable and should be expected by senior members of startup teams).

As I read his post, I was jazzed up and thought that him and I really do share very similar trains of thoughts and positions on important matters (which is why we’re great friends and have both flown out of country to attend each other’s weddings). When he did ask me to write an editorial about this topic I sort of cringed at the idea of writing about something that I am not (yet) too concerned with and as I examined my own experiences, I thought that I actually did have a point of view on this topic.  With Tiho being in the valley and me in #Toronto, I thought I could give it a uniquely Canadian perspective.

I’m not a father

As mentioned above, I’m definitely not a father yet. My wife and I have discussed the life journey we’re on and how we are both looking to have children (well, at least child) and possibly even adopt at a later stage. We think that with the plentiful resources we have at our disposal and the the love and dedication we know we possess, it would be a shame to be selfish and keep it all to ourselves.  We are currently very typical 30-somethings with a dog (and possibly about to get another one) and know that at some point, soon enough, the time will come when we will stop the precautions geared to not having a baby.

https://www.instagram.com/p/BOtgZu5l8By

What I’ve heard from friends who are fathers

We obviously have many friends that have had children.  As far back as 20 years ago (in my own case), a few of my friends began their parental journeys. Until I really gave it some thought, I had not even noticed that it had almost exclusively been the wives who were (nearly) the sole caregiver in the first year of life. Now that I critically examine it, I see that my friends (mostly) fell into the mean (for #Canada at least):

Why don’t dads take the time?

As you can see in the chart above, Canadian dads (outside #Quebec) only take a marginal amount of leave when their children are born (yes, Quebec kicks all our butts in this). Among the 3/4 of fathers who did not take any leave, here are some of the more common reasons (in no specific order):

• Pressure on the job
• Mothers want to take all responsibility
• Financial reasons
• Fear of social reactions
• Disapproval from work place
• Career penalties due to leave
• Not fit for the parental duties

My friends hadn’t done it. I didn’t really think it was an option. I felt dedicated to my job. I didn’t know where I would be placed when I came back to work. And fear, fear of being the guy in the finance world who bails, and fear of sucking at it.

And the reaction of some fathers who actually took time away from work:

Most people seemed surprised that I would want to take such significant time away from work, I guess there was this misconception that I should want to be more career focused and let my wife deal with the child rearing.

It seems that this is the norm among the very “macho” society we live in, that traditional roles are truly not abolished and that men are still expected to do “men” things and women are supposed to do “women” things (this is not my point of view, it’s simply part of this thesis).

One thing that I have found across the board is that any friends that I have who have had children in Quebec fared differently than this.  My sister (and my wonderful twin nephews) are part proof of this (and so many great social programs aimed at young parents).

Quebec government’s focus on family

Quebec’s system provides up to five weeks of paid leave to new fathers that covers up to 70 per cent of their income. The province has seen the share of dads taking or planning to take #parental leave increase to 86 per cent in 2015 from 28 per cent in 2005, according to Statistics Canada.

Along with this, Quebec parents can rest assured that when they do have children, it will not sink them financially to send them to daycare.  In Quebec, the price of daycare is capped at $7 per day; that means an average month will run parents $140.  This is also not some bargain basement daycare, my nephews’ daycare had nearly daily field trips, organic food and many choices for the children.

starting from September 1997, the government implemented a plan to create new child-care facilities and pay for additional daycare places. The parental contribution was set at $5 per day per child, irrespective of family income. In the first year, the low fee policy applied to four year olds; in 1998, to three year olds, and in September 2000, to all children aged 0-59 months (who were not in kindergarten). Currently, Quebec finances this program to the tune of $1.3 billion.

Those statistics speak to numbers from 2005.  The reason the Quebec government went down this path was (in the end) to incite more parents to have more children, thus creating more tax payers in 18-20 years.  I have yet to see the numbers from Stats Canada, but I would guess that the 2018 the $1.3 billion is being brought back in just in taxes and not in all the extra #benefits (i.e. development, business growth, etc…) that comes with a larger population.  Further, having a larger population leads to other economies of scale (an increasing population – to a point – leads to better services at cheaper prices for the city planners).

That level of childcare in Toronto would run upward of $2000 per month which is a travesty. This has been a major talking point among my urbanite friends who can’t quite figure out where to get $2000 per month to send their children to daycare.  It’s often a choice of whether or not one parent will go back to work, especially if that parent is not a high-earner.

Advantages of paternal leave (or split parental leave)

• Even for as little as a few weeks, #paternity leave after birth can bring equality to gender roles of the family.
• Fathers naturally develop better parenting instincts after taking paternity leave.
• Fathers who take paternity leave are happier and have long lasting relationship with their kids.
• Paternity leave creates more stable and happier families with less conflict.
• Children whose fathers are involved for their care at early stages tend to be happier,healthier, do better at school, have greater self-esteem and fewer behavioural problems.
• Couples who use paternity leave are less likely to divorce.
• Couples share domestic tasks mutually and have 11% fewer conflicts over the division of household labour.
• Help your wife when she is in need of support as she recovers from labour (it’s a huge operation and often just glossed over).
• Help with any possible issues that may arise post-partum.

Historically, post-partum care of new moms fell onto grandmothers, but now with the boomer generation, many of those grandparents are in the labour force

What should startup founders do to help foster healthier families

I have seen some (big) companies treat this well, but have yet to see a really great startup (or been part of one) that had thought this through.  Generally at early stages, many tech #startups are (typically) comprised of young(er) male entrepreneurs who are not thinking about (their) families and mostly do not think about the well-being of their staff’s family.

Many startups believe that their only reason for existance is to drive productivity and/or get to next round of funding, so they often incentivize (or push) their staff to work gargantuan hours and don’t promote work-life balance.

There has definitely been a shift in this over the past 7-10 years, as millennials have entered the workforce, many of the boomers’ ways of thinking have dissipated from management and have led to a more friendly way to manage (and retain) our people.  For as much as we do complain about millennials being stubborn or entitled, they have really forced us managers to do better by our employees.

I have read of and seen some places where daycare is offered for free, whether it be as a co-operative between several businesses (which I think is a preferred model) or if it is one very large conglomerate like Alphabet (Google). This must be the way of the future as our startups (and #founders) grow into useful, contributing members of commerce.

The truth is, a highly engaged and supercharged workforce at your startup means you will do better.  De-moralizing the staff in any way is a path to the scrap heap (and it’s something I am weary of when working at a startup, founding one or simply investing in one).

How are you protected (just like mothers) when taking parental leave

Some fathers may be afraid to take paternity leave in case it adversely affects their career. It’s important to know that fathers taking parental leave have the exact same rights as mothers taking maternity leave. This means:

• The right to reinstatement – You have to get your job back , or a similar one if yours is no longer available, at the same salary or higher.
• The right to be free from penalty – This means the employer cannot punish you in any way for taking the leave.
• The right to continue to participate in benefit plans – Your employer must continue paying their own share of the premiums on your insurance.

So the fears seem to be unfounded and more of a societal stigma than anything.

We, as (non Quebec) Canadians, need to be leaders rather than followers, or at least be in second place (behind Sweden). Sweden is the first country with approved paternity leave and encourages fathers to share the parental leave with their partners. Fathers are required to take 3 months paternity leave with the payment of 80% of their salary. That benefit can be used anytime up until the child turns 8 years old.

How Canada actually compares to the rest of the world

In Europe, “the seven countries with the highest male shares of parental leave users (Iceland, Sweden, Portugal, Norway, Luxembourg, Belgium, and Germany) all have father-specific (or partner-specific) entitlements to paid parental leave,” reads a 2016 report from the Organisation for Economic Co-operation and Development. Aside from these countries (I’m very proud right now being both Portuguese and Canadian), we do compare quite well.

In terms of comparing Canada to the United States, something we (the little brother) often like to do, first, let’s look at maternity leave:

And next, where most of the world does poorly, let’s see how the US does in paternity leave:

The current programs and how they work

If your workplace does not top you up or give you great benefits, here is what the current government plans do for you in Canada (all available here: https://www.canada.ca/en/services/benefits/#ei/ei-maternity-parental/benefit-amount.html).

• Canadian government mandates maternity leave, paid leave is offered for one or both parents through #employment insurance plan.
• New mothers can take between 17 and 52 weeks of leave from their jobs.
• Either mother or father can take 35 weeks of parental leave after the baby is born or adopted. The parents can share the leave however they choose.
• If eligible for the program, the benefits equal 55 per cent of the parent’s average weekly insurable wage, up to a maximum of $485 per week.
• Employment insurance benefits are taxable in the same way as wages.
• Only Quebec fathers are entitled to a leave without pay of 5 consecutive weeks at the birth of their children. However they can add paternity leave to parental leave to get payment.
• Paternity leave may begin no earlier than the week of the birth of the child and end no later than 52 weeks later.
• The basic rate for calculating EI parental benefits depends on the option you choose:
  • Standard parental benefits are paid at a weekly benefit rate of 55% of your average weekly insurable earnings, up to a maximum amount. For 2018, this means that you can receive a maximum amount of $547 per week for up to 35 weeks.
  • Extended parental benefits are paid at a weekly benefit rate of 33% of your average weekly insurable earnings, up to a maximum amount. For 2018, this means that you can receive a maximum amount of $328 per week for up to 61 weeks. (The amount of $328 can be increased if you are eligible to receive the Family Supplement).
    

Under new rules that came into effect in December (2017), new parents can spread 12 months of employment insurance benefits over 18 months.

The caveat (regarding EI payments for concurrent leaves)

Both parents are definitely allowed to be on leave concurrently, however they have to share the (EI) benefits.

In total, there are 35 weeks of parental benefits available to eligible parents of a newborn or newly adopted child. There are many ways you can decide to use your parental leave. For instance, one of the parents can take the entire 35 weeks of benefits, or both parents can share them.

Hopefully you are part of a (rare) workplace that actually tops up your pay to a percentage of normal / expected pay during these leaves (which I’ve seen all the way up to 100%) and this point becomes moot.

What the Trudeau government is trying to change

The #Trudeau government has been talking about paternal leave in their negotiations for the 2018 budget. It’s good that Justin had a foundation of early childhood in Quebec because he and his cabinet really seem to get it (and understand the benefits) of paternal (parental) leave.

The idea would be similar to the paternity leave policy in Quebec, which is the only province that provides funded leave for new fathers.

The Liberals have heard from experts that the popular program in Quebec should be replicated at a federal level along with other changes to parental leave policies, including increasing the value of benefits paid out for parents who opt for an 18-month parental leave and creating a new, six-month leave option with a higher income replacement rate to help low-income families that can’t afford a year at only half salary.

Conclusion

Canada seems to be well on its way to a much better state, not just for fathers, but for families in general.  My hope is that by the time my wife and I decide to have children, Trudeau’s liberals will have implemented Iceland and Sweden like levels of benefits and that the company(ies) we work for are smart enough to make this a priority.