SHARE
COPY LINK
STARTUPS

TECH

Spotify rolls out parental leave benefits worldwide

The music streaming service has said it will offer all staff up to six months' parental leave on full pay, to ensure international workers don't miss out on a similar benefit already enjoyed in the Swedish capital.

Spotify rolls out parental leave benefits worldwide
Staff at Spotify's offices in Stockholm are already entitled to long parental leave. Photo: TT
While staff in the international company's Stockholm office currently benefit from the 480 days of paid leave that all Swedish employees legally are entitled to, those hired in other major cities including London, Sydney, Paris and New York have not been given the same deal.
 
In announcing its new generous maternity and paternity scheme, Spotify said that the perk was “consistent with the parental leave policy in place for employees in Stockholm”, stating it believed it was “the right thing to do” to have a “consistent” and “global” offering for mums and dads.
 
In Sweden, it is standard practice for employers to offer staff 80 percent of their salaries during their time away from the office (although this is capped for those earning more than 37,083 kronor – around $4,265 – a month). Mothers and fathers are both entitled and encouraged to share the leave.
 
Spotify which launched in 2008, said this week that from 2016, all of its 1,600 staff would get six months of parental leave on full pay. Employees who have had children since the beginning of 2013 will also be eligible for the benefit, since parents will be allowed to take their time off at any point between the birth of their child and his or her third birthday.
 

Swedes already enjoying the country's generous parental leave. Photo: Martin Svalandar/Image Bank Sweden
 
The Swedish firm is also introducing a so-called 'Welcome Back!' programme, allowing team members greater flexibility when returning to the company following time off, including the chance to work both flexibly, part-time and from home.
 
“This policy best defines who we are as a company, born out of a Swedish culture that places an emphasis on a healthy work/family balance, gender equality and the ability for every parent to spend quality time with the people that matter most in their lives,” said Katarina Berg, Chief Human Resources Officer for the streaming service.
 
Sources close to the company told The Local on Friday that the move was not surprising given that many of the firm's management team were now in their late 30s and based in the United States, where companies do not legally have to offer any paid leave to parents.
 
This was also hinted at in Berg's statement: “Spotify is growing up fast and the team’s responsibilities at home and at work are growing with us. With this in mind, today we’re introducing a new, global, parental leave policy, developed to support all of our staff with families, wherever they are in the world”.
 
But in practice the policy may not bring equality across the board, since salaries for senior roles in New York are typically higher than those in Stockholm.
 
The announcement of the new strategy comes as the company continues to record operating losses, despite establishing a user base of 75 million people in around countries.
 
Spotify's loss in 2014 amounted to 1.5 billion kronor ($182 million), compared to 46.1 million in 2013. The company's operating income was also negative, according to the Luxembourg-based holding company Spotify Technologies.

TECH

Cookie fight: Austrian activist in tough online privacy fight

Five years after Europe enacted sweeping data protection legislation, prominent online privacy activist Max Schrems says he still has a lot of work to do as tech giants keep dodging the rules.

Cookie fight: Austrian activist in tough online privacy fight

The 35-year-old Austrian lawyer and his Vienna-based privacy campaign group NOYB (None Of Your Business) is currently handling no fewer than 800 complaints in various jurisdictions on behalf of internet users.

“For an average citizen, it’s almost impossible right now to enforce your rights”, Schrems told AFP. “For us as an organisation, it’s already a lot of work to do that” given the system’s complexity due to the regulators’ varying requirements, he added.

The 2018 General Data Protection Regulation (GDPR) imposes strict rules on how companies can use and store personal data, with the threat of huge fines for firms breaching them.

While hundreds of millions of euros in fines have been imposed following complaints filed by NOYB, Schrems said the GDPR is hardly ever enforced. And that’s a “big problem”, he added.

He said the disregard for fundamental rights such as data privacy is almost comparable to “a dictatorship”. “The difference between reality and the law is just momentous,” Schrems
added.

‘Annoying’ cookies

Instead of tackling the problems raised by the GDPR, companies resort to “window dressing” while framing the rules as an “annoying law” full of “crazy cookie banners”, according to Schrems.

Under the regulation, companies have been obliged to seek user consent to install “cookies” enabling browsers to save information about a user’s online habits to serve up highly targeted ads.

Industry data suggests only three percent of internet users actually approve of cookies, but more than 90 percent are pressured to consent due to a “deceptive design” which mostly features “accept” buttons.

Stymied by the absence of a simple “yes or no” option and overwhelmed by a deluge of pop-ups, users get so fed up that they simply give up, Schrems said. Contrary to the law’s intent, the burden is being “shifted to the individual consumer, who should figure it out”.

Even though society now realises the importance of the right to have private information be forgotten or removed from the internet, real control over personal data is still far-off, the activist said. But NOYB has been helping those who want to take back control by launching
privacy rights campaigns that led companies to adopt “reject” buttons.

 Shift of business model 

Regulators have imposed big penalties on companies that violated GDPR rules: Facebook owner Meta, whose European headquarters are in Dublin, was hit with fines totalling 390 million euros ($424 million) in January.

One reason why tech giants like Google or Meta as well as smaller companies choose against playing by the GDPR rules is because circumventing them pays off, Schrems said.

Thriving on the use of private data, tech behemoths make “10 to 20 times more money by violating the law, even if they get slapped with the maximum fine”, he added.

Contacted by AFP, both companies said they were working hard to make sure their practices complied with the regulations.

Schrems also accuses national regulators of either being indifferent or lacking the resources to seriously investigate complaints. “It’s a race to the bottom,” Schrems said. “Each country has its own way of not getting anything done”.

Buoyed by his past legal victories, Schrems looks to what he calls the “bold” EU Court of Justice to bring about change as it “usually is a beacon of hope in all of this”.

Meanwhile, the European Commission is considering a procedures regulation to underpin and clarify the GDPR.

In the long-run, however, the situation will only improve once large companies “fundamentally shift their business models”. But that would require companies to stop being “as crazy profitable as they are right now,” Schrems said.

SHOW COMMENTS