Penalty rates showdown begins in the Federal Court
All eyes will be on the Federal Court today when the hearing begins on the Fair Work Commission's decision to cut Sunday and public holiday penalty rates.
It will be an important test for unions and business groups around Australia.
And it’s a critical hearing because it’s regarded as the test of the commission's powers under the act.
Over the next three days, a panel of five judges sitting in Melbourne will hear the appeal by the unions against the Fair Work Commission’s decision in February to cut penalty rates for workers in the retail, hospitality and other sectors.
United Voice national secretary Jo Schofield said the union was putting up a strong legal argument.
“Firstly, we think the Fair Work Commission failed to consider the relative living standards and needs of the low-paid and they are required to under the act," Schofield told the ABC.
"We'll also argue that penalty rates form an important part of the safety net for workers in the hospitality industry."
The Commission’s decision has been welcomed by the government.
And Australian Hotels Association chief executive officer Stephen Ferguson said the penalty rate cuts were important for businesses which he represents.
He said these companies could do more business with the penalty rate cuts coming into force.
He was also confident the court would uphold the Commission’s decision.
"We've reviewed the submissions of United Voice and others [to the Federal Court] and we believe that we're on very solid ground, or the decision of the Fair Work Commission is on very solid ground," Ferguson told the ABC.
"They were chartered by the [federal] parliament to conduct four-year reviews of awards.
"In our view they have complied by the act and we don't see that the grounds raised by the union will succeed [in court]."
The Shop, Distributive and Allied Employees Association and the Australian Industry Group will also be appearing at the hearing.
by Leon Gettler, September 26th 2017
