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Mandatory sick pay "will lead to job losses and absenteeism"

That is according to the business owners who took part in a survey for ISME, who said that mandatory sick pay of four weeks will have a “disastrous effect” on businesses.

BUSINESS OWNERS HAVE said that mandatory sick pay will lead to job losses and absenteeism.

That is according to a major survey of members carried out by ISME, the Irish Small & Medium Enterprises Association.

The survey confirmed that the proposed mandatory sick pay of four weeks for employers will have a disastrous impact on competitiveness, jobs and absenteeism levels, ISME said.

The survey was carried out last week and involved 766 respondents.

According to the results:

  • 93 per cent of companies anticipate job losses.
  • 90 per cent of companies outlined that their cost base would increase if the proposal is introduced.
  • 72 per cent of companies feel that absenteeism levels will increase with only 3 per cent expecting a reduction.
  • 75 per cent of SMEs do not have a sick pay scheme in place.

Commenting on the results, ISME CEO Mark Fielding said that the survey” clearly indicates SME opposition to a plan that will put further pressure on costs, will lead to increased absenteeism and will result in the loss of thousands of jobs, adding to exchequer costs”.

He said that the typical number of days lost per annum due to absenteeism in SMEs is three days and well policed.

It is estimated that the business cost of the measure will be an additional €150m per annum, but this fails to take into account increased absenteeism and loss productivity, said ISME.

Fielding questioned where Minister Joan Burton, who proposed the sick pay, thinks that businesses will find the money to pay sickness benefit on top of replacement pay.

In conclusion Fielding said that the government:

is supposedly promoting and encouraging enterprise and job creation on the one hand while, on the other, this ‘mad-cap’ proposal is a definite ‘job-killer’ creating an atmosphere of uncertainty among the small business community, which is stymieing business activity, investment and employment creation.

He said the proposal to introduce a mandatory sick pay scheme should be ‘binned’.

Comments from the participants in the survey included:

These proposals are definitely stopping me from hiring a new employee in the coming months.
Small companies would be unable to fund the new proposals.

We had a sick pay scheme of 12 weeks but when thing got bad we had no choice to stop it. When we stop we had a 90 per cent drop in our absenteeism.
I had to introduce a “no sick pay” policy last year. Absenteeism has reduced hugely.
This proposal will make it impossible for small businesses to function. It will increase absenteeism and bottom line costs. In our case we will downsize our business to one or two key employees and family members. We had a sick pay scheme where we paid 7 days per year. Everybody took 7 days.

Read: Small firm workers take few sick days – survey>

Read: Employers slam Burton plans to make them cover sick pay>

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    Mute Jay Coleman
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    Oct 29th 2016, 7:05 AM

    Can’t believe this is only being implemented in the US when it’s been well documented in Europe. Another one that’s just been realised in the past 2-3 years is giving them a soother. This again drives the percentage down lower still as they reckon using a soother helps the baby regulate their breathing.

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    Mute dearg doom
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    Oct 29th 2016, 11:00 AM

    I know someone who lost a baby to SIDS but still insists it’s fine for babies to sleep on their front because she was always placed on her front and her mother’s a nurse. Apparently studies have shown it’s fine, but I think you’ll find a study to support anything.

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    Mute Stephen
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    Oct 29th 2016, 1:22 PM

    Sounds like a coping mechanism. Poor woman.

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    Mute Gone Feisin
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    Oct 29th 2016, 7:33 AM

    Any articles not from AFP? Any non-American viewpoints on these sites?

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    Mute Jumperoo
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    Oct 29th 2016, 8:13 AM

    AFP is Agence France Presse. Cheese eating surrender monkeys instead of hot dog eating blubber monkeys.

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    Mute Macus Mc Mahon
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    Oct 29th 2016, 8:40 AM

    When was placing a baby front way down ever a good idea.

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    Mute Sinful Dreary
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    Oct 29th 2016, 10:24 AM

    They do in the hospital especially if baby has a lot of mucous, obviously this is completely supervised

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    Mute john healy
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    Oct 29th 2016, 8:55 PM

    General concern was that if you left a baby on its back it could choke on its own vomit so there was some thought behind it… Parents predating 1992 weren’t idiots..

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    Mute Linda Hughes
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    Oct 29th 2016, 1:06 PM

    I don’t know why you would put a baby in a room on it’s own?

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    Mute Anto Curran
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    Oct 29th 2016, 8:41 AM

    “Other strategies include offering a child a pacifier at nap time and night as well as ensuring they have all the recommended vaccinations” – this is a hard hitting report that doesn’t half speak the obvious.

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    Mute Chris Martin
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    Oct 29th 2016, 7:15 PM

    My babies always slept better once they moved into their own room. I think I was keeping them awake and vice versa. But for my own peace of mind I purchased an Angel Mat which beeps to let you know if baby stops breathing.

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    Mute Big Red
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    Oct 30th 2016, 7:26 AM

    We bought the ‘Angel Care’ monitor with the mattress sensor and it went off twice for our first born and once for our second born. One of the times it went off for our first born we jumped out of bed and I turned on the light – the baby didn’t move. My wife stirred/shook the child and we heard him take a massive intake of breath. I am glad we spent the 100 euros on the Angel Care monitor. It is more expensive than other monitors, but it does go off it your baby stops moving/breathing.

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    Mute Oiche Fairy
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    Oct 29th 2016, 6:35 PM

    So how are you supposed to keep a baby warm if you live in a house that gets really cold overnight and you can’t use a blanket? Just curious

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    Mute john healy
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    Oct 29th 2016, 8:56 PM

    Sleep suit, gro bag or similar..

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