Full cuts to Sunday penalty rates phased in over several years
The Fair Work Commission has ruled that full cuts to Sunday penalty rates for fast food, hospitality, retail and pharmacy employees will be phased in over the next few years.
‘Small cuts will be made to rates starting from next month. The rest will phased in over several years to 2020.
The landmark decision will see penalty rates cut in three annual instalments from 1 July 2017 for workers under the Fast Food and Hospitality awards and casual workers under the Retail award and in four annual instalments from 1 July 2017 for workers under the Pharmacy award, and for full-time and part-time workers under the Retail award.
It will reduce Sunday penalty rates for fast food and hospitality workers by 5 per cent this year, then 10 per cent in both 2018 and 2019, bringing their final rate down to 125 per cent and 150 per cent from 175 per cent. Fast food industry rates will drop from 150 per cent to 125 per cent by 2020.
Sunday pay for pharmacy or retail workers will be cut by 5 per cent this year, and a further 15 per cent every year until 2020, reducing their Sunday double time to 150 per cent.
The Commission rejected lobbying from Labor, the ACTU and United Voice not to reduce Sunday penalty rates.
The decision has upset the Australian Retailers Association which had been seeking for the cuts to be made over two years, not four.
ARA Executive director Russell Zimmerman was disappointed with the decision.
“Retailers wanted this phased in much more quickly so we can get on with the job of employing more people,” Mr Zimmerman said.
“What this will do is create an incredible amount of extra work for retailers, who won’t be able to employ more people as quickly as they would like.”
The ACTU said the changes will see workers losing an average of more than $2000 each with the biggest losses occurring in urban NSW and Victoria where a combined $434 million will be cut from wages of families.
“We know that a lot of this money – more than three quarters of a billion dollars straight out of worker’s pockets in our cities – will not stay in Australia, and will be banked overseas by multinational corporations,” ACTU secretary Sally McManus said.
“Australian workers are already suffering as a result of stagnant wage growth; they can’t afford a $1.42 billion wage cut.
The Minister for employment Michaelia Cash said the decision would “even the playing field for Australia’s small businesses, which have to pay more for staff on Sundays than big businesses who do deals with big unions.”
“This will help thousands of small businesses open their doors, serve customers and create jobs on Sundays,” Senator Cash said.
by Leon Gettler, June 6th 2017
