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Hospitality could take a hit as one-off public holiday messes with rosters and wages

Several businesses will feel the pinch next week, when the country shuts down for the National Day of Mourning to remember Queen Elizabeth.

The Prime Minister called a one-off public holiday next Thursday 22 September to pay respects to the queen, who passed away late last week.

However, some businesses are up in arms about the decision and have called on the government to clarify trading conditions, most notably awards as what was to be a normal day of trade could cost businesses hundreds of dollars in penalties.

Australian Retailers Association chief executive Paul Zahra called for clarity saying, “Store opening and closing directions are typically established by the states and territories, and we look forward to their direction today so retailers can plan accordingly.

“Nevertheless, this event will create some complications for businesses with store closures and staff scheduling challenges, with many rosters set up weeks in advance. There will also be a small but unexpected loss of trade, and additional staffing costs, which may impact cashflows for small businesses.”

Despite concerns, the Prime Minister doubled down on his decision, clarifying that essential services would be maintained, despite elective surgeries being cancelled when the backlog still hasn’t been cleared.

“It is appropriate that this is a one-off one in a 70-year event. It is important that we acknowledge the contribution of Queen Elizabeth II over such a long period of time,” he told 2GB’s Ben Fordham.

“These issues, with a bit of common sense, can be worked through. If someone needs chemotherapy on that specific day of course they should receive it.

“On the day, if you’re a small-business owner in hospitality, there will be an enormous amount of activity on that day, I would imagine.”

The day was chosen as a matter of “protocols that have been in place for decades” which deem the day of mourning to be held the day after the PM returns home from the UK with the Governor-General.

In Sydney, the government will make clarifications once logistics are sorted but Sydney’s hospitality sector is now weighing up whether to open or not as a public holiday raises staff wages well above their normal hourly rate.

“It makes it cost prohibitive to open. You can offset it by charging a 10 per cent surcharge, but it still costs you a lot of money,” one Sydney restaurateur said.

Aqua Dining and Ripples Chowder Bay owner Bill Drakopoulos said penalty rates that day would leave businesses at a loss.

“We will have to pay public holiday rates, we will trade but it will only be worthwhile if we’re busy,” he said.

“We will close our city cafes, but our restaurants will be open.

“Some businesses will make a loss … Public holidays are expensive days to trade.”

 

 

 

Irit Jackson, 13th September 2022