Chesnot | Getty Photos Information | Getty PhotosSwedish automaker Volvo Vehicles is growing paid parental go away for workers globally to 24 weeks
Chesnot | Getty Photos Information | Getty Photos
Swedish automaker Volvo Vehicles is growing paid parental go away for workers globally to 24 weeks no matter gender, the corporate introduced Tuesday.
Workers — each hourly and salaried — who’ve been with the automaker for no less than one yr are eligible for the brand new “Household Bond” program, the corporate mentioned.
It covers those that develop into dad and mom by start, adoption, everlasting foster care and surrogates. Non-birth dad and mom in same-sex {couples} are eligible as properly. This system takes impact Thursday, Volvo mentioned.
Workers will probably be paid 80% of their base pay by default underneath this system. They can use the time without work from work through the first three years of parenting a brand new youngster. U.S. workers even have the choice of 19 weeks of absolutely paid parental go away inside 36 months of turning into a mother or father, in keeping with Volvo.
The brand new coverage is supposed to help the corporate in expertise acquisition and retention because it focuses on turning into an all-electric automobile producer by 2030, in keeping with Volvo CEO Hakan Samuelsson.
“It is one thing we imagine is setting a brand new customary within the enterprise,” he instructed CNBC. “We do that, to not introduce some sort of new favorable profit to our workers, we do it extra as a result of we expect it is good for our firm. We will probably be extra engaging as an employer. There is a competitors happening for expertise.”
Samuelsson mentioned the corporate expects the brand new program to value a “appreciable sum” — doubtless within the “single-digit thousands and thousands.” He mentioned so long as “it provides us higher, numerous administration and a stronger model, it would undoubtedly be price it.”
What we do as an organization resides our values.
Hakan Samuelsson
CEO, Volvo
Volvo’s present program permits for six weeks of pay for use within the first yr of turning into a mother or father, in keeping with the corporate.
Volvo’s new parental go away program is among the many most complete within the automotive trade. For instance, Common Motors and Stellantis supply U.S. salaried workers as much as 12 weeks of paid household go away for brand new dad and mom, whereas Ford Motor affords as much as eight weeks. These are along with six to eight weeks out there to start moms by the Household and Medical Depart Act.
Volvo determined to launch the brand new parental go away program following constructive outcomes of an analogous pilot program for hundreds of its gross sales workers in Europe, Samuelsson mentioned.
“What we do as an organization resides our values,” he mentioned. “Will probably be good for our repute in every single place.”