Penalty rate decision in Federal Court

Unions have taken the Fair Work Commission’s decision to cut Sunday penalty rates to the Federal Court.

Unions representing hospitality, retail and pharmacy workers have mounted the challenge.

The case, launched last week, was heard by a full panel of five judges.

The appeal, which started on September 26, challenged the Fair Work Commission’s decision that cut Sunday penalty rates for workers in the fast food, hospitality, retail and pharmacy sectors from July 1. It was heard over a period of three days.

Both the hospitality union United Voice and the Shop, Distributive and Allied Employees' Association (SDA) have launched separate Federal Court challenges to keep workers' penalty rates the same for Sundays and public holidays. 

Justice Mordecai Bromberg ruled back in July thay both cases would be heard together.

The unions are up against employer and business groups including the Australian Industry Group, the Australian Hotels Association, the Australian Retailers Association and the NSW Business Chamber.

They have argued in favour of the cuts.

The case is an important test for unions and business groups around Australia because it amounts to a major review of the commission's powers under the act.

United Voice national secretary Jo-anne Schofield said workers around Australia were already feeling the impact of the Commission’s decision.

“We are fighting to stop these cuts, because they are a pay cut that workers can’t afford and don’t deserve,” Schofield told reporters.  

“In handing down the decision, the Fair Work Commission stated that the cuts ‘would inevitably cause some hardship to the employees affected.

“But they have cut these workers’ pay packets regardless.

“We are appealing because we believe the system is broken — a system that is there to protect relative living standards, not to lower them.”

She said their union’s legal argument boiled down to its claim that “the Fair Work Commission failed to consider the relative living standards and needs of the low-paid as they are required to under the act”.

The union is also arguing that “penalty rates form an important part of the safety net for workers in the hospitality industry”.

by Leon Gettler, October 3^rd 2017