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Hospitality workers won’t lose pay with penalty rate cuts

Hospitality workers will actually have more in their take home pay with penalty rate cuts, according to modelling from the Australian Chamber of Commerce and Industry.

The ACCI says the impact of the annual award wage increase will more than counteract the impact of the first stage of the reduction in penalty rates.

The chamber’s chief executive James Pearson said the reality would be very different from the unions’ fear campaign.

The bottom line, he said, was that hospitality workers would actually be getting a pay rise on July 1.

“The Fair Work Commission’s phasing of the penalty rates decision means that the 220,000 people affected by the changes – those who currently work Sundays on retail and hospitality awards – will see an increase in their pay from 1 July 2017, including on a Sunday,” Mr Pearson said.

“Once you factor in the 3.3 per cent award wage increase, from July 1 a retail assistant will be paid $313 a day for an eight-hour Sunday shift. That’s more that the current $311 a day.

“Sundays will still be paid more than any other day of the week.

ACCI analysis shows that only permanent level 1 fast food workers will receive less pay for a full Sunday shift. And that’s 32 cents.

According to the ACCI analysis of the rates of pay for casuals on Sundays, a Level 1 food beverage and kitchen attendant will be $8.42 better off.  An L6 Grade 5 cook would be $10.34 better off.  A level 1 fast food worker would be 96 cents better off. For full time workers working an eight hour shift, an L6 grade 5 cook would be $1.06 better off and a level 1 food and beverage attendant would be 90 cents better off.

Employment and Workplace Relations Minister Michaelia Cash said Labor’s campaign had mislead the public.

“The adjustments to penalty rates will level the playing field for Australia’s small businesses so they can remain open on Sundays, serve customers and create jobs,” Senator Cash told News Corp.

“Unions and the Labor Party have deliberately misled Australians and are drowning in hypocrisy when it comes to the issue of penalty rates.”

by Leon Gettler, June 29th 2017