Innovative childcare at the workplace enables women to participate in the labour market in Moldova and Ukraine
24 June 2024
Mothers often stay out of the labour market for lack of available, reliable and/or affordable childcare services. The ILO has been testing new models of childcare that can help them re-join the labour force.
Orange Kids
In a ground-breaking initiative, telecommunications operator Orange Moldova has unveiled "Orange Kids," an on-site childcare facility for their employees. The project is supported by the ILO, the National Confederation of Employers of the Republic of Moldova (CNPM), and financially supported by Sweden.
"Orange Kids" offers a child-friendly environment tailored to meet the needs of young children, featuring rest and play areas to keep kids engaged in recreational activities while their parents are at work. The space can accommodate up to 10 children at the same time, meaning that each month, up to 400 children can benefit from this service. Of the 1200 children of the employees, 600 are eligible to spend the time at Orange Kids.
This service fills a critical gap in Moldova, where only 15 percent of children under three are enrolled in preschool. The lack of childcare options has left 53.6 percent of the population, mainly women aged 25-34, inactive due to family responsibilities, despite their qualifications. By supporting working parents, this initiative aims to reduce economic inactivity among qualified young women, boosting the workforce and economy.
"I am pleased that we can support employees with young children to work from the office when needed. Also, I am proud that we are the first company in Moldova to have the courage to implement such a project and hope to set an example for other local businesses," said Olga Surugiu, CEO of Orange Moldova.
The on-site childcare facility aims to help parents on parental leave and employees with family responsibilities return to the labour market. Launching the crèche at Orange Moldova will strengthen team spirit, reduce turnover, and attract new talent, stated Leonid Cerescu, President of CNPM.
Gheorghe and Ana Luchian, who work at Orange Moldova, praise the new childcare facility for allowing them to be present at work while staying close to their daughter. "For our daughter Eva, this modern space is perfect, as it meets all the needs and safety requirements for children. Additionally, Orange Kids saves us the expense of hiring a nanny , especially since children under two are not accepted at state kindergartens."
“I have always had this dream of helping parents in Moldova balance their professional and family lives. Because investments in this field have been lacking, we currently have over 150,000 women out of work,” said Alexei Buzu, Minister of Labour and Social Protection of the Republic of Moldova.
The Ministry of Labour and Social Protection, with ILO`s support, has also established a child-friendly facility on its premises to support its employees. This space offers a safe and engaging environment for children while their parents are at work. Designed to accommodate approximately 10 children up to the age of five, it is intended for after-school activities and school holidays.
“We aimed at creating a conducive environment where parents can focus on their work without neglecting family life. Many women give up their careers to care for their children, and we aim to give them more opportunities and develop a parent-friendly job market. I encourage public institutions and private companies to offer similar services for their employees,” added Minister Buzu.
In Moldova, the government incentivizes employers to set up childcare services for’ employees' children up to three years old by offering a non-taxable monthly payment of 2500 lei (US$137) per child.
Government funding programmes, along with support from international organizations and civil society, have led to the renovation and expansion of several other public childcare facilities across Moldova for children up to 3 years old. In 2023 alone, 23 new nursery groups were created and 32 were renovated. Furthermore, through the "European Village" programme, around 50 kindergartens have been renovated.
Looking ahead, investments for the next year have been doubled, with 20 million lei (US$1.1 million) allocated from the National Regional and Local Development Fund to further expand nursery services.
“Child-friendly policies are attributed to Scandinavian countries. We aim and aspire to be known for that in the Eastern European region and thus increase the participation rate of women in the labour market," stated Minister of Education and Research, Dan Perciun.
BohusLOVE, Ukraine
In Ukraine, the situation is similar: women's participation in the workforce is hindered by the scarcity of affordable and accessible childcare services. The ongoing war with Russia has exacerbated the need to engage more women in the labour market. To address this, the ILO is piloting innovative childcare solutions designed to be accessible and affordable for all, particularly targeting children under three years old. These new models include family-type arrangements, mini kindergartens, and workplace-based solutions.
“Facing unprecedented challenges, the government and employers’ organisations of Ukraine are actively seeking ways to support enterprises to meet their human resource needs. One of these solutions is to engage women in the labour market now and during the post-war recovery period and to strengthen their economic capacity. This is especially relevant for mothers of small children,” says Anatolii Kinakh, President of Ukrainian League of Industrialists and Entrepreneurs, Chair of Association of Employers Organizations of Ukraine, a partner of the ILO project.
In a collaborative effort between the ILO and the United Nation High Commission for the Refugees (UNHCR), the Bohuslav Professional Humanitarian College in Bohuslav, Kyiv region, has inaugurated its first on-site childcare facility. Originally a smaller-scale commercial service, the childcare centre has been expanded and transformed into a nurturing environment tailored for children. Serving families of college staff and internally displaced persons (IDPs) seeking refuge in the college's hostels, the facility addresses a critical need for accessible childcare. With ILO support, the college managed to register the childcare centre as a formal preschool education facility, which will also offer an internship for college students.
Olena Muzychenko’s twin sons will stay at the kindergarten while she is at work. “Knowing that my children are safe and close is crucial to me,” she says. Tamara Prytoliuk is an IDP from the Russian-occupied Kherson region. She has been living in the college hostel with her three children for two years now. Her youngest has turned four. “He will be attending the kindergarten while I will be looking for a job as it is obvious, we will not be going back home any time soon,” explained Tamara.
The pilot program, already gaining traction, serves as a model for future initiatives. Two additional pilots are set to launch soon. The first is in a public hospital located in a municipality, where maintaining traditional, large-scale kindergartens has become increasingly cost-prohibitive. The second involves a union of two manufacturing plants in an industrial city. These plants face significant challenges in attracting employees due to the lack of accessible childcare services. As word of this initiative spreads, the list of enterprises eager to join the endeavour continues to grow. By offering on-site childcare, companies not only support their employees but also create a more inclusive and productive working environment.
Based on the outcomes of the pilots, the ILO will develop recommendations for the improvement of legislation on preschool education and other policies that enable the activation of Ukrainian women in the labour market.
Research shows that there are many reasons why employers should support the provision of care services. These include worker retention, increased productivity, and enhanced corporate reputation. Such investments also strengthen recruitment, support parenting and work-life balance for employees and increase gender equality. Kindergartens and creches offered by employers reduce childcare-related absenteeism and workplace disruptions.
Investing in the care economy generates jobs in the care sector and indirectly in other sectors by unlocking economic potential. It reduces gender and intersecting inequalities and improves workers’ well-being, making it a smart investment for economic growth and sustainable development.