Gender quotas ‘a necessary evil’ – Labour

The Labour Party (PL) has declared itself in favour of mandatory quotas for female participation at executive level on all government boards and public listed companies - in line with a directive proposed by EU Commission Vice-President Viviane Reding, which is expected to be opposed by Malta and a number of other EU states.

Describing the proposal as an example of "positive action", Labour spokesperson on public service on gender equality Helena Dalli said that the PL has already introduced such quotas within its own ranks.

In fact gender quotas have been in place in the party structures for 15 tears.

In comments to MaltaToday, Dalli said that "quotas are a necessary evil as they are a means to address the informal unequal opportunities and outcomes of women in society."

According to the European Commission's database gender quotas, Malta's 19 largest quoted companies trading on the Malta Stock Exchange are all chaired by men with the company boards having just three women, while the remaining 97 members are men - a participation rate of just 3%.

The law is seeking to have a female participation on boards of directors of companies listed on the stock exchange of 40% by the end of 2020 or face tough sanctions, a move that will hit companies such as BOV, HSBC Malta, GO plc, International Hotel Investments, Fimbank, Lombard Bank, Farsons, Middlesea Insurance, Island Groups and Maltapost. 

The proposed EU law will exclude publicly listed companies that are classified as SMEs, having fewer than 250 employees or an annual turnover of €50 million or less.

To date the private sector has been allowed to elect board members as it sees fit. However the argument that women are not as capable as men to take on the responsibilities of top jobs no longer holds water. The European Business Schools have just published a list of 7,000 "board-ready" women.

Elsewhere, Renee Laiviera - chairperson of the Malta Confederation of Women's Organisations, which is backing Reding's call for quotas - drew attention the situation in Norway, which is one of the leading performers with regards to gender equality.

The World Gender Gap Report of 2011, published by Harvard University, ranks Norway 2nd in gender equality stakes among 134 countries worldwide, with an index of 0.84 (where 0 represents total inequality and 1 represents total inequality).

In the same report Malta is ranked 83rd with an index of 0.666. 

As early as 2003, quotas were imposed on publicly traded Norwegian companies whereby at least 40% of board members were to be composed of women in 2003 or face dissolution, resulting in much higher female participation rates.

Laiviera said that the reasoning behind the legislation was that private companies did little to spontaneously provide opportunities for women to reach board level before the laws were enacted.

"Commissioner Reding was quoted as saying that without quotas it would be some fifty years before EU states are able to bring parity in the board room.  One must wonder how long it would take Malta, given our regularly poor performance in this regard," she said.

The initiative will also meet with opposition from the UK as well as Malta and eight other member states.

Quotas on their own, however, will not solve the gender gap issue at management level, only hasten the process. Both Dalli and Laiviera recommend addressing issues of childcare and elderly care, flexible working conditions, teleworking, job sharing and sharing of parental responsibilities.

Laiviera said, "this action plan should include clear female participation targets with realistic and achievable set time frames.  Incentives to private companies and other stakeholders to support these initiatives should also be considered.

"However, as the situation currently stands, quotas cannot be excluded from the equation, given how they represent the most effective means of achieving the much-necessary adequate female participation within a realistic time frame."

Nonetheless Justice Minister Chris Said over the weekend hinted that his government will oppose the EU regulations saying that national governments should be able to pursue their own equality means. 

Though Said acknowledged the importance of female contribution to the workforce, imposing a "one-size-fits-all" solution may not work out as well for Malta as it would in northern Europe due to cultural differences as well as issues with accessibility to support structures for working mothers.

He said that equality needs to be achieved through developmental strategies and polices: "The real solution does not rest with numbers but with fair and effective participation between women and men in society" and a cultural change is necessary rather than a quick solution which may not produce the best results in the long run.

But in a statement issued yesterday, the MCWO rebutted Said's position.

"We are indeed very surprised that Malta is supporting a United Kingdom diplomatic move to stop the proposal altogether," Laiviera said on behalf of the MCWO.

"There is general consensus that women are hardworking, efficient and effective at the place of work. What is bewildering is why these same women cannot be trusted to use these skills to find a work-life balance and reach the highest echelons in the boardroom. Apparently only men with families can do this," Laiviera said.

"Why should [Said's claim] hold water in the business sector when a growing number of studies show a link between more women in senior positions and companies' financial performance," Laiviera said, citing the EU's justice commissioner Viviane Reding's - who is sponsoring the law - warning that without the quotas it will take 50 more years to have a reasonable gender balance on company boards.

"How many years must Malta continue to invest hugely in its human resources while refraining from taking effective action to make the best return to strengthen its economy and increase public wealth?"