Activist group presses G8 Education on absence of paid parental leave

The Sustainable Investment Exchange (Six), an ethical share trading and advocacy platform, has launched a wide ranging campaign to address what it refers to as a “motherhood penalty” in place at some ASX employers that do not offer their workforce paid parental leave entitlements. 

G8 Education, fashion accessory group Lovisa and Premier Investments, owner of the Peter Alexander and Smiggle brands, have become the focus of the recently launched campaign with all three being substantial employers with a predominantly female workforce that do not offer paid parental leave as part of their entitlements package. 

Activist groups like Six, having identified a shortcoming in an ASX list organisations operating practices, will seek to advocate for change by acquiring shares in the target company, or encouraging others to acquire shares in the company, which in turn gives them the legal right to present resolutions for change at their Annual General Meeting (AGM). 

The threshold for lodging a resolution at the AGM is that more than 100 shareholders, with less than 5 per cent shareholdings, must agree to the lodgement or a single shareholder with more than 5 per cent automatically has the right to lodge a resolution. 

These resolutions are then put to the vote at the meeting with shareholders casting their votes to determine whether the resolution is to be passed or not. Should a majority of shareholders vote in favour of the resolution then the company will not be legally bound to make the change but will be more likely to act for fear of an investor, or public relations, backlash. 

With regards to G8, James Alexander, from Six, speaking to the Guardian said the platform was preparing to lodge a shareholder resolution on the issue at G8’s AGM in May.

“The people we trust to look after our children are not supported to look after their own,” Alexander said before adding that “We’ve spoken to the company and they have refused to change their stance.”

A G8 spokesperson, also speaking to the Guardian said the company provided team members with meaningful benefits that included staff childcare discounts, six weeks of annual leave for teachers and above-award pay.

“We recognise that our team members are our biggest asset, and we do our best to provide a supportive and inclusive working environment,” the spokesperson said before adding that, “the company would “continue to evaluate our employment terms, conditions, and benefits.”

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