Australian government lodges pro-union submission

Australian government lodges pro-union submission to Fair Work Australia on modern award penalty rates

On 17 September 2012 the Australian Government lodged a written submission to Fair Work Australia in respect to penalty rates arguing reducing penalty rates would not lead to positive economic, social or community outcomes.

Restaurant & Catering, Chief Executive Officer, Mr John Hart said 'the Australian Government submission is a one dimensional set of arguments that fails to address the real issues identified by the retail, hospitality and small business community'.

The Australian Government submission was made to the Full Bench of Fair Work Australia in relation to multiple applications to vary penalty rates across a range of Awards. The Restaurant Industry Award is subject to a separate hearing process before Commission Gay. Despite this separation the Government submission references the Restaurant Industry Award 2010.

'It appears the submission approved by Minister for Workplace Relations conveniently does all the research and advocates the position for the trade union movement at the expense of the commercial viability arguments raised by small business owners', Mr Hart said.

Mr Hart commented further that 'Restaurant & Catering members have indicated they will need to reduce staff or further reduce trading hours unless the escalating cost of labour is curtailed to sensible levels and Fair Work Australia must seriously take these issues into consideration – this is surely this is not a positive economic outcome.

Source: Restaurant & Catering, 18 September 2012