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2002-10-28 15:04:16, 조회 : 407 |
A Proposal to Diversify the Daycare Service Supported by Employers / by Seungju Yang
/ KWDI Research Reports/Women's Studies Forum, Vol.13/December 1997
* This paper is the condensation of the 1996 Research Report 200-7, A Proposal to Diversify the Daycare Service Supported by Employers by Seungju Yang.
Ⅰ. INTRODUCTION
At the present time the government is implementing the day-care-at-work policy centering around the establishment of daycare centers at the work place. It is required that companies with more than 300 female employees should establish daycare facilities. However, as of 1996, only 5.4% of the 329 companies in that category have daycare centers at work. Even the major companies do not have daycare centers, and the policy is simply not being implemented very well.
Among the companies with more than 300 female employees, many have a few women with daycare needs. It costs much to newly establish daycare centers or to remodel the existing facilities. Considering the administrative costs of changing the usage of the building, costs go even higher. Further, the number of female white collar workers in the field of non manufacturing sector is increasing, where the employee number is relatively small and it is difficult to establish daycare centers at work. In the case of service companies, there are a few with more than 300 female employees, and they tend to be located on expensive real estate, which makes it difficult to find room for daycare centers.
The support of the companies in establishing daycare centers is urgently required. However, because of the above reasons, there is a clear limit to such daycare at work centering around establishing facilities within the work place. In order to solve the problem, there is a need to change the policies from limiting the daycare at work to the work place or to the facilities located nearby, to the policy of encouraging the employers to share the costs of daycare. In other words, emphasis should be put on cost sharing rather than on the location of facilities.1) Un Cho, 1995, "What is a Daycare at Work?" in Our Children Growing Up Together, ed. Common Childrearing Research Association 138.
The purpose of this study is to promote the effectiveness and equity of the daycare at work projects by expanding daycare at work through the diversification of daycare services.
Ⅱ. THE SITUATION OF DAYCARE AT WORK BY TYPES
1. Establishment of Daycare at Work by Types
A. Industries Surveyed
A mail survey was conducted of a total of 64 companies which had established daycare centers after August 1995. Only 38 companies replied, but there were the total of 42 companies since one of the companies had five daycare facilities in headquarters and branches.
1) Industries.
Looking at the industrial distribution of the companies, 17 were manufacturing and 21 were non-manufacturing. In the case of the manufacturing industry, three were textile companies, four were clothing and four were electronic companies. Among the non manufacturing industries, seven were public institutions, si. elementary schools, si. hospitals, and two insurance companies.
2) The number of workers.
There were 19 companies with more than 300 female employees which had the responsibility of establishing daycare centers at work. The other 19 had less than 300 female employees. Among the latter, there were six public institutions and si. elementary schools, as well as four small and medium manufacturing companies. Looking at the distribution of the number of married women workers, it was mostly in the companies with more than 100 married women where the daycare centers were established at work.
B. Facilities
1) Background for establishment.
The reasons given for establishing daycare centers were to promote the welfare of workers (19 responses) and to secure women's labor forces (9 responses). The demands by workers and labor unions (6) was another reason for the establishment. In private companies, the necessity for securing women's labor forces and the demands by the labor union had more impact than the motivation for promoting the welfare of workers.
2) Openness of facilities.
Altogether, 27 daycare centers were open exclusively for the workers. However 13 companies opened the facilities to neighboring companies and local citizens.
3) Age of children and daycare hours.
There are 25 facilities for children over three years of age, which leaves more than 17 facilities for children under three years of age. Eleven facilities provide services for more than 12 hours, and nine of them provide more than 13 hours of service. Those which provide more than 13 hours of service for children under three years of age are mostly the daycare facilities attached to hospitals. The daycare facilities of large hospitals provide practical daycare services that cannot be provided by local facilities.
[Table 1] Distribution of Facilities by Children's Age and Daycare Hours
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Age N Facilities Daycare Hours(weekdays) N Facilities
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Under 1 2 Under 8 hours 3
1yr 3 8∼10 hours 20
2yrs 12 10∼12 hours 8
3yrs 21 12∼16 hours 8
Over 4yrs 4 Over 16 hours 3
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Total 42 Total 42
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4) Monthly daycare fee.
The average daycare fee of manufacturing companies is mostly under US＄33.00(30,000 won) a month. In contrast, a relatively high daycare fee of over US＄133.00(120,000 won) is required for facilities operated by elementary schools, hospitals, and public sectors. In the case of the medium and small companies, the daycare fees are cheap, but since the companies are often not capable of providing quality daycare service, the quality of the daycare is in question.
[Table 2] Distribution of Daycare Centers by Monthly Daycare Fee
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Monthly Daycare Fee Number of Facilities
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Free 9
under＄33.(30,000 won) 6
＄44.(40,000)~＄56.(50,000) 6
＄78(70,000)~＄111.(100,000) 10
over ＄133(120,000) 11
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Total 42
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5) Distribution of Workers Using Daycare Centers by Gender
Among the respondents, 21 centers had no male workers using daycare centers; 11 companies had less than 20% of males among the workers using daycare centers, six had over 50% of males and three companies had 100% males among the workers using daycare centers. Those with more than 50% male workers are electronic companies and heavy industries located in special regional industrial areas, which established daycare centers mostly for the welfare of male workers.
C. Current Situation of Daycare Centers at Work and Its Evaluation
1) Effect of establishing daycare centers.
Most companies evaluated that the establishment of the daycare centers were a positive factor in promoting productivity. There are direct effects on increased productivity such as enhancing recruitment and lowering turnover and absenteeism,but a considerable investment effect is obvious in promoting the motivation of workers as well as public relations and corporate image.
[Table 3] Effects of Establishing Daycare Facilities
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Enhancing Decreased Decreased Increased Improved
Recruitment Turnover Absenteeism Motivation Corporate
of Worker Image
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Very much 8 7 3 13 17
Mostly so 8 11 16 15 15
So so 6 8 7 7 --
Not much change 9 8 9 2 3
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Total 31 34 35 37 35
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2) Difficulties in the management of daycare facilities.
The companies were having difficulties due to excessive operation costs (11 companies) and a decreased number of children(nine companies). Especially the medium and small companies and schools which have few women workers pointed out difficulties due to the decreased number of children. The reasons for the decrease were the reduced number of workers (three companies) and the parents' decision not to send their children to daycare(five companies). When the companies cannot provide a good quality of daycare, it finally leads to the parents' choosing not to send their children to daycare.
2. Examples of Different Types of Daycare
A. Linkage with Local Daycare
1) Designate private daycare centers.
G Company which manufactures men's formal suites designated a private daycare center near the company in 1992 and provides a daycare allowance for the workers who use the center. Because the workers’ residential homes were centered around the factory, it was possible to designate the nearby daycare center.
2) Support local daycare.
S Group is a representative company which supports local day care projects. In order to promote the welfare of the urban low income stratum through daycare projects, it has a plan to establish a total of 97 daycare centers between 1989 and 2000, investing US＄264,000,000(237.6 billion won). L Group also supports local communities and local daycare facilities.
B. Consortium Centers
In banking industries, there has been a high demand for daycare because they employ large numbers of women between 25~34 years of age and the labor unions are active. Some banks have established daycare centers, but it was not easy to establish such centers because banks are dispersed into branches. It was also difficult for the workers to bring their children to downtown areas due to traffic jams. Therefore, the bank worker's unions decided that the form of the day care at work was not suitable, and changed the plan to establish daycare facilities in local areas. The banks will jointly invest money to establish and operate consortium centers in local areas. They plan to operate about 10 daycare centers in Seoul.
Ⅲ. EVALUATION OF VARIOUS KINDS OF DAYCARE AND FUTURE PROSPECTS
1. Prospects of the Needs for Daycare.
The size of the stratum which need daycare in each company is an important variable in choosing the type of employer supported childcare services. In [Table 4] the average number of female workers per company was calculated by dividing the total number of female workers in each industrial field by the number of companies in each field. According to the table, the size of the company should reach that of 500 employees or more to constitute 300 female employees or more. Among the companies with 500 999 employees, those with more than 300 regular female employees are textile, clothes manufacturing, and communication facilities industries. As a non manufacturing business, hospitals belong to the category.
[Table 4] The Average Number of Regular Female Employees per Company
Classified by Industrial Field and Employee Size
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100~199 200~299 300~499 500~999 over 1000
Manufacturing 44.9 77.0 115.4 202.2 787.6
Textile 59.5 107.6 194.5 375.9 1,162.6
Clothing, leather 90.6 165.6 249.0 368.6 783.2
Pulp, paper 25.0 42.5 54.6 100.3 803.0
Publication, printing 37.6 70.3 107.1 118.6 405.8
Oil extract 48.4 76.5 45.8 48.5 223.0
Chemical products 36.9 60.1 132.3 142.3 444.6
Other machineries 26.2 43.0 51.5 103.2 301.6
(General, special machineries, home appliances)
Office appliances 42.3 101.6 107.6 213.7 2,644.0
Electronic machineries 52.3 86.6 127.2 228.3 804.9
Communication facilities 56.0 109.1 157.0 304.8 1,635.0
(electronic pipe, communication equipment, audiovisual, soundtrack)
Medical, precision 65.1 111.0 142.9 206.0 771.0
Automobiles 28.1 49.0 75.9 89.3 323.6
Other transportation 15.4 41.1 35.7 81.1 418.5
Finance 59.8 104.0 147.0 259.2 544.4
Insurance, pension 42.4 42.1 101.4 100.6 415.9
Finance related services 54.5 75.2 109.1 204.0 503.7
Information processing 58.0 52.9 101.7 121.7 -
Research and development 30.1 64.1 72.2 113.0 294.8
Education 35.2 66.0 107.6 155.0 375.2
Health 93.2 169.0 257.6 467.0 1,169.5
Recreation and culture 36.2 73.6 73.7 214.0 490.5
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Source: Ministry of Labor (1995) Report on the Survey of the Labor Situation by Industries, pp. 70~113.
The number of companies with more than 500 employees accounts for less than 1% of all the companies in manufacturing field. Further the number of companies where women workers are concentrated such as textile and clothing is rapidly decreasing. In contrast, where the number of married women is increasing, in the service industries except the health related sector, the number of female workers per company is less than the average in the manufacturing industry. This shows that the choice of on or near site center service has limits.
[Table 5] reports findings on the industries with more than 300 female employees per company, in order to survey the industrial sector which can provide the on site daycare services. Those marked with ◐and ●are the industries which are expected to have a high demand for daycare considering the age structure of female workers among industries with more than 300 female employees per company. Among the manufacturing industries, these are machinery related companies and audiovisual and soundtrack industries, which are growing industrial sectors. In non manufacturing industries, as in foreign countries, the demand for daycare is expected to increase in such knowledge intensive industry areas as research and development.
[Table 5] Industries with More than 300 Female Employees per Company
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Regular Employees 500-999 More Than 1000 Regular Employees
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Manufacturing
Meat, fruits, and other food Drinks and others Home appliances
Textile, spinning ● Textile, spinning ● Office appliances ◐
Clothing ● Clothing ● Electromotor machines
Shoes Shoes Electric control
Commercial printing ● Wood, cork Electronic pipe
Other electronics ● Pulp, paper ● Communication
Electronic pipe Publication Audidvisual, sound ◐
Audiovisual, sound ◐ Commercial printing ● Optical instruments◐
Furniture Chemical products ◐ Furniture
Other nonmetal Other manufacturing
Structural metal
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Non-manufacturing
retail Finance ◐ Education ●
Communication Insurance and pension Health ◐
Health Research and Recreation and
development ◐ culture ◐
Business service
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Source: Ministry of Labor (1995) A Report on the Industrial Situation
Note : ◐indicates the industries where the average age of female workers is between 25~29 years of age, and ●indicates those with the average between 30~34 years of age.
2. Prospects for Industrial Support for Daycare
A. Plans to Support the Establishment of Daycare at Work
According to a survey conducted by the Ministry of Labor in 1995, 206 companies (63.8%) of the total of 323 companies are classified as those having responsibilities to establish daycare centers at work. The remaining 117 companies (36.2%) have less than 300 female employees. Looking at the industrial distribution, manufacturing industries comprise 62.6% of these and non manufacturing industries comprise 36.8%. Among the non-manufacturing industries, hospitals account for 15.3%.
As to why the companies have not established daycare centers yet, 52.6% of the respondents said it is because there are no or very few women workers who need daycare. Among the remainder, 15.8% mentioned the burden of costs, and 15.1% said they did not see the need to employ married women. There is not much difference between those that are responsible for the establishment of daycare centers and those that are not in respect to how they mention these reasons.
[Table 6] Reasons Why Companies Have Not Established Daycare Center
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Total Responsible Others
Companies
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No or very few workers 170( 52.6) 104( 50.5) 66( 56.4)
who need daycare
Costs too much to establish 51( 15.8) 32( 15.5) 19( 16.2)
daycare centers
Difficult standards for 11( 3.4) 9( 4.4) 2( 1.7)
establishment and operation
Harmful or dangerous environment 12( 3.7) 9( 4.4) 3( 2.6)
of work place
No need to employ married women 47( 14.6) 31( 15.1) 16( 13.7)
Others 32( 9.9) 21( 10.2) 11( 9.4)
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Total¹ 323(100.0) 206(100.0) 117(100.0)
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1. Excluding the three companies that did not respond
Of the 323 responding companies, 87 companies (26.9%) answered that they have plans to establish a daycare center in the future. Surprisingly, there was no meaningful difference between the responsible companies and those who are not as is seen on [Table 7]. However, when analyzing the difference between the establishment plan by distinguishing between the industries with more than 100 married women workers and those with less than 100, there was a statistically meaningful difference. While 33.8% of those companies with more than 100 married women had a plan to establish daycare centers, only 20.0% of those with less than 100 did. Thus, the managerial condition of the personnel composition rather than legal responsibilities had more impact on the decision making of the companies.
[Table 7] Future Plans to Establish Daycare Centers
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Responsible Less than 100 More than 100
Companies Others Married Women Married Women
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Have a plan 59(28.6) 28(23.9) 32(20.0) 52(33.8)
No plan 147(71.4) 89(76.1) 128(80.0) 102(66.2)
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Total 206(100.0) 117(100.0) 160(100.0) 154(100.0)
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χ²=7.589 DF=1 P=0.006
B. Evaluation and Future Prospects of Daycare Services Supported by Employer
In order to survey the prospects for the various kinds of daycare services supported by the employer, 30 major companies that will take a lead in the development of the enterprise based welfare program were surveyed. Questionnaires were mailed to the persons in charge of the planning division, and 15 companies responded. The groups with few women workers such as heavy chemical industries did not respond. Because the number of responses is small, there is a caution in explanation. However the responses are meaningful because they indicate us the attitudes of major companies towards the various kinds of daycare services supported by the employers.
1) Attitudes of companies towards family support.
First we asked about the responsibilities of the enterprises in solving the family problems of workers. Most companies, excluding one group, showed positive attitudes. They responded that the welfare system supportive of the family has already taken root and will continue to be expanded in the future. However, diverse perspectives were found, from that of companies that recognize responsibility for solution of family problems in a limited way as related to increased productivity, to those that regard the problems not only as related to productivity but as related to the broader social responsibility of a company. It was also found that male centered patriarchal attitudes are very strongly maintained in their answers such as "because it is a company where the head of the family is working" or "because the head of the family gives a lot of time for the company, the company has a responsibility in solving family problems."
In Korean companies, a paternalistic welfare system has developed, where the employer feels a considerable amount of responsibility for the families of workers in place of the head of the family in traditional society. A large part of the enterprise based welfare system covers workers and their families, for example, houses funded by the company, family allowances, family medical service, assistance for wedding ceremonies and funerals, and children's education allowances.
As paternalism is a characteristic of Korean companies, and as a characteristic is expressed in a uniquely Korean way to promote productivity, they will have few ideological conflicts in supporting daycare for workers. As companies expand the welfare system under the equation that workers equal male heads of the family, some leading companies will naturally expand the welfare to education allowance for children of school age leading to an education allowance for children of pre school age leading, in turn, to and support for daycare.
2) Evaluation of the daycare service supported by employers.
We asked what are the present stages of the various kinds of daycare service systems supported by employers in order to comparatively evaluate them.
According to the survey responses, companies showed the most positive attitudes towards the reemployment system and the flexible work hours system which are comprehensive personnel policies to support daycare. This is because the number of the companies which already have a flexible work hours system or are in the process of introducing the system for managerial reasons other than daycare assistance was relatively high. At the same time, the companies have positive attitudes towards reemployment since they are already without too much legal and institutional burden, re employing those women who have the will and capacity for it.
In evaluating daycare services, the companies were in general negative in comparison to the personnel policies. They showed relatively positive attitudes towards assisting local daycare centers. Next they favored the establishment of daycare at work, and the least preferred alternative was to pay daycare allowances.
The large industries that are exposed to the demands to assume their social responsibilities tend to be positive towards assisting local daycare centers because it will mean fulfilling their social responsibilities, and as a one time investment, it does not constitute a continuous burden. Such attitudes of leading groups are desirable in the sense that they can induce the expansion of public daycare in partnership with local governments. Especially, it is expected to be a means to promote the participation of big industries that do not have strong needs for daycare assistance due to their employment structure.
3) Opinions on the linkage between local daycare and daycare at work.
The companies were asked their opinions on the linkage between local daycare centers and daycare at work, from the perspective that daycare at work results in a gap among industries in their welfare enefits. But most companies were positive. Some of them agreed in principle, but many pointed out concrete measures such as opening the facilities to local community citizens and sharing a partial cost of daycare projects in the local community. In contrast, the companies that are in the process of evaluating the day care at work were opposed, saying that there is a high probability that the local daycare centers might not be able to fulfil the daycare needs of their employees, in which case the companies will be forced to provide separate daycare facilities for them, resulting in a dual burden for the companies. This indicates that diverse approaches should be taken according to the size of the burden of daycare felt by the companies.
Ⅳ. RECOMMENDATIONS
1. Basic Directions for Policies and Strategy Making
In order to promote the industrial support of daycare, the governmental assistance to companies should be drastically increased, and a policy change should be made from the previous emphasis on establishing a daycare center at work to that of diversifying the ways of sharing the costs of daycare. The policy change is desirable from the perspective of the development of an entire daycare system. The entire daycare system should be operated centering around local daycare, while daycare at work can complement the functions that local daycare cannot cover, and the expansion of local daycare can be promoted through the sharing of daycare costs by the employers.
Therefore, the basic directions for daycare at work should emphasize not only the expansion of the labor supply of women workers, the promotion of skilled women workers, and the promotion of workers’ welfare, all of the which are important, but also the expansion of the daycare system through participation of the companies. Under such basic directions, the following policy tasks are suggested.
2. A Linkage System Between Local Daycare and Daycare at Work
1) Governmental Assistance for the Local Linkage Daycare Service
At the present time, assistance is given from employment insurance for childcare leave and childcare at work for the promotion of women's employment. The position of this paper is that the daycare service supported by the employers should be diversified, and the government should expand the daycare at work by diversifying its support systems. The present assistance for day care from employment insurance should be strengthened, and at the same time new measures should be sought to assist various forms of daycare services supported by employers.
Governmental assistance is required for the companies which provide daycare services in connection with local daycare centers in addition to the establishment of daycare centers at work. When the company has a contract with local daycare centers so that its employees can use the facilities and the employer assists or shares a part of daycare costs, the government should pay a certain proportion of the daycare costs that a company pays to the local daycare centers from the employment insurance fund.
2) Forming a Basis for a Voucher System
The United States expanded the linkage type daycare service through the development of daycare chains which secured daycare facilities in many areas. The federal and local governments made efforts to expand such services including a voucher system. It is necessary to form a basis for the implementation of a voucher system in order to expand a linkage type system between daycare at work and local daycare centers. For this purpose, local governments should first of all develop various kinds of information programs on the daycare centers in the local community and take charge of all the information regarding daycare facilities. Based on this, the local government should develop the measures to link companies and local facilities by issuing vouchers.
3) Promote Industrial Assistance to Local Daycare Projects.
Tax incentives should be strengthened so that companies can expand daycare investment for local community. It is suggested that the provision on the special case of donations allowed by the existing Tax Exemption Control Law should be revised to define as legal those "the donations spent for the daycare facilities established under the Special Act for Daycare." By recognizing all the investment in the daycare centers as donations, it is possible to promote industrial in vestment in such centers.
3. Expansion of Daycare at Work and Flexible Management
1) Relaxation of Regulations Related to Establishment and Expansion of Tax Incentives
Daycare centers at work provide longer services than other daycare facilities, and additionally, when they are established at work, there are high probabilities that they can be situated in dangerous or harmful environments. Therefore, although the companies are demanding the relaxation of the standards for facilities and teacher child ratio, the existing standards seems reasonable. If good quality daycare is not provided, daycare investment can end in failure because the parents will not send their children to the daycare centers. Considering that the daycare centers at work tend to have many problems from the perspectives of daycare teachers and children, it would be difficult to relax any more standards.
Although it is not desirable to relax the standards for the facilities and employees, it is recommended that the regulations regarding construction should be relaxed in order to promote daycare at work. Companies go through many difficulties in getting permits to build daycare centers especially in changing the purpose of the building. It is recommended that the relevant provisions of the Construction Act be revised so that the purpose of the building can be changed easily to build daycare at work.
Further, it is recommended that such regulations as measurement rate, building to land ratio, and height restrictions be relaxed in building of commercial and industrial buildings when they secure a daycare space of certain size. Then the employers will be more encouraged to build daycare centers, resulting in the expansion of daycare centers at work.
2) Proposal to Promote Daycare Centers at Work for Local Community
Big industries should consider the establishment of daycare centers for local communities in the way that bank industries have done. In this study, there was a case when a local industrial complex opened its daycare facilities not only to its employees but also to nearby companies and local community citizens, increasing the investment effect of day care. Some industries were considering ways to establish daycare centers centering around a local area so that all the employees of the affiliated company can use them. As such, big industries can establish daycare facilities centering around a local area and open them to employees, all the branch companies and nearby companies, and local community citizens, thus promoting the motivation of workers and improving the corporate image.
3) Increased Assistance for Daycare at Work
At the present time the costs of establishing daycare centers are covered by low interest loans from the national pension and the employment insurance. However, the government, as a more radical measure than such financial assistance for the construction expenses, plans to establish 33 daycare centers in the major industrial complexes or dense industrial areas in 1997 and provide US＄300,000(270 million won) for establishing each of the facilities for free. In the future, such free financial assistance for the cost of construction should be expanded for the daycare faculties of the medium and small industries and for the medium and small industries united type of daycare centers.
Along with the assistance for the construction cost, the employment insurance assists the operation of the on site daycare centers by providing one half of the salaries of teachers. The current assistance level should be raised to provide all the salaries of teachers. Such assistance should be provided to the day care centers at work which have a certain percentage of children of the employees of other companies or of local community citizens as well as provided to small and medium industries.
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