Unintended Effects
Wednesday, May 21st, 2008A pressing issue at the U has opened my eyes to how business decisions impact employees. The University of Iowa is proposing to cut a benefits package that supports many families’ day care expenses. It is proposed to make benefits more equitable and save the university money. There are many reasons that I do not support this cut, but I want to focus on how it may be a step backwards in regard to women in the workforce.
There are many employees at the university that are considered ‘dual spouse,’ where both spouses work for the university. Because they can combine their health benefits, they have left over money that can be used for health spending accounts or dependent care accounts. Many couples with young children use this money to cover the cost of daycare. For those unfamiliar with daycare, its expensive! A couple can easily spend $900 per month on daycare for just 1 child. With the benefits being cut, couples will lose out on most of that money (it is difficult to measure the exact amounts for people because there are many unique circumstances – cost of daycare, amount contributed toward dependent care accounts, amount spent on dental and life insurance, etc).
I want to take a moment to recognize that this is at most a difference of $5000 a year towards daycare that would be lost. That would be under half of the annual cost of daycare if it were $900/month. Thus, couples were still having to pay half a year’s worth of daycare already.
Consider being a new mom though. You have a beautiful new child to care for and have been home for several weeks on maternity leave. It’s close to time to return to work and you just don’t know if you can do it. What motivation do you have? With the current benefits package, you have 6 months of daycare paid for! Alright, you can go to work knowing that the university appreciates how much you are giving up by not being home with your child. Then consider the new benefits, you will be paying $900 each month to go spend time with people you don’t love as much as your child. Is it as easy to make that choice?
The proposed benefits cuts do not target working mothers. In fact, it targets giving more money to single mothers. But are there other (unintentional) effects getting lost in the rush to get this signed by July 1? Are we sacrificing one set of mothers for another?
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Genealogy
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