WestpacTrust is the New Zealand division of Westpac Banking Corporation, which is incorporated in New South Wales,
Australia
23 June 2002 For Immediate Release
WestpacTrust at Forefront of Parental Leave
WestpacTrust will lead the banking sector with the introduction of its new parental leave provisions on July 1, 2002.
New parents will receive 100% of their salary under the scheme that tops up the government’s 12 week paid parental
leave.
The initiative sets a new standard for the way companies treat staff and their families says WestpacTrust GM People and
Performance Andrew MacKenzie. “Parenthood is both intensely joyous and intensely demanding. We are proud to support our
staff at this critical time of life when their new child arrives.
“WestpacTrust’s scheme is leading edge - among the best of the best in New Zealand. The provisions will make a real
difference to the quality of life for new parents and give them much-needed reassurance.”
On 1 July 2002 paid parental leave becomes law in New Zealand, providing a maximum payment of $325 gross per week for up
to 12 weeks. The WestpacTrust scheme tops up the Government’s fortnightly paid parental leave payments to 66% of the
primary caregiver’s salary, plus a lump sum payment of the remaining 34% three months after an employee returns to work
in a full capacity. This gives employees 100% of their salary for the 12 week period.
Andrew MacKenzie says the scheme recognises that everyone benefits from a parent’s ability to make a successful
transition from home to work after the birth of a child. “The initiative is hugely important for WestpacTrust, its staff
and customers. It provides the best possible start for staff and their families, will ensure more of our highly trained
staff return, and maintains continuity of relationship with our customers. It also gives staff career continuity and
removes one of the common barriers for those women wanting to move through management ranks”.
“WestpacTrust now leads the financial sector in valuing the contribution of staff who are parents. We take our social
responsibilities seriously and are delighted to announce these new initiatives, which complement the government’s paid
parental leave. The scheme will apply to all eligible staff across the bank’s operations – not just senior management,”
he says.
Andrew MacKenzie added that the parental leave scheme responds to priority issues for staff. “We’ve listened to the
feedback of staff currently on parental leave. They’ve told us the key issues are loss of income and having flexibility
when they decide to return to work. The scheme gives greatest financial support when it is needed, in the early weeks of
parenthood. The scheme also provides a two-month graduated return to work period for the primary care-giver with options
including flexi-time, part-time or gradual return to work.”
The new provisions also make good business sense. WestpacTrust Diversity Consultant Karyn Herbert estimates the cost of
replacing an employee who decides not to return to work is an estimated 2½ times their annual salary.
“We estimate costs of over $1 million per year in staff turnover related to parenting – and this doesn’t include some
of the hidden costs such as decreased productivity and effect on customer relationships,” says Karyn Herbert, “New
Zealand research suggests only around 30-50% of employees return to work following parental leave – a huge loss of
experience and customer goodwill”.
“In contrast, international research found that organisations investing in paid parental leave report returns ranging
from 130-430%. We know from the bank’s experience in Australia that providing paid parental leave has increased the
return to work rate by over 50%.”
The new scheme also supports World Health Organisation guidelines on breastfeeding. WestpacTrust will provide the
opportunity to continue breastfeeding or expressing and ensure there is no loss of pay as a result.
In addition all new parents at WestpacTrust receive a gift bag of baby essentials, bank account for the new baby and one
years free Parent Centre membership. Parental leave conditions are exactly the same for same sex relationships and for
adoption.
Andrew MacKenzie says the Parental Leave scheme was part of WestpacTrust’s overall commitment to being a family-friendly
employer of choice. “Staff have access to school holiday programmes, medical benefits, superannuation, shares, study
grants and study leave and performance bonuses. Our Employment Assistance Programme provides free counselling services
to staff and their immediate families for work-related or personal matters.”
ENDS