Penalty rates in the gun
Waiters, hairdressers and beauticians face losing their Sunday penalty rates following last month’s Fair Work Commission decision slashing Sunday bonuses from workers in hospitality, retail and fast food.
The Fair Work Commission is now taking submissions on the procedure for cutting rates.
The Fair Work Commission draft decision will see hospitality employees getting their Sunday pay reduced from 175 per cent to 150 per cent, Sunday rates for fast-food employees going from 150 per cent to 125 per cent for full-time and part-time staff, rates for fast food casuals being slashed from 200 per cent to 175 per cent and Sunday penalty rates for full and part time workers in retail going from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent.
In his submission, Opposition leader Bill Shorten said the decision “must be set aside entirely”, claiming it would affect 700,000 low paid workers and warning that it was the beginning of a broader push to wipe penalty rates.
“Millions of workers who rely on weekend penalty rates risk having their pay cut as employers continue to apply for penalty rates to be reduced across a range of other sectors,” Mr Shorten said.
“The fact that the Commission is continuing to review other awards is further proof that the first round of penalty rates is just the thin edge of the wedge of a broader assault on the take-home pay of Australian workers.”
The Federal Government’s submission says take-home pay orders could not be used to top-up affected workers pay cheques.
As far as transitional arrangements, the government submission left it up to the Fair Work Commission saying it would see “positive employment benefits flow to businesses” while considering the “potential economic impact and effects on employees”.
The Australian Chamber of Commerce and Industry wants Fair Work to enforce the reduced rates without delay.
The Chamber in its submission says lower penalty rates means shops would open longer on weekends, providing more hours of work for youths and underemployed people.
by Leon Gettler, March 27th 2017
