Victorian restaurants welcome ruling to cut Sunday penalty rates

SOME of Victoria’s most popular restaurants have welcomed a ruling to slash Sunday penalty rates - but say bigger cuts are needed.

The penalty rate for the lowest-paid casual restaurant workers will drop from 75 per cent to 50 per cent from July 1.

But the Fair Work Commission warned employers not to drop higher-qualified staff on to lower classifications to save on wages.

At present, restaurateurs pay about $29 an hour for the lowest-grade casual worker on Sundays.

The industry will use the win to fuel its push for further changes to penalty rates on weekends and nights.

But the union representing workers, United Voice, said it was considering an appeal as the decision was an attack on some of the country’s lowest-paid employees.

The European’s general manager, Bengt Baumgartner, said the change would ease some Sunday wage pressures but wouldn’t make a big impact.

“It is certainly a step in the right direction,’’ he said.

“A lot of the decision around whether people choose to trade or not on Sundays and public holidays revolves around whether or not they can make it viable.’’

Ladro co-owner Ingrid Langtry said her staff were already on a flat seven-day rate that was higher than the award.

She hoped the ruling would encourage more Sunday dining.

“At Greville St we are one of the only restaurants open on Sundays,’’ she said.

“I think it will help create a more vibrant Sunday dining scene across Melbourne.’’

Robin Wickens, executive chef at one of regional Victoria’s best restaurants, The Royal Mail, said cafes and restaurants with younger, transient staff would benefit the most.

“It’s a good start, but it’s the places that want a high level of staff that will still be struggling to run their businesses on Sundays and public holidays,’’ he said.

The majority judgment rejected an argument that a reduction in penalty rates would have “significant benefits for employment and business turnover’’.
But it accepted it could have a “limited’’ effect on employment.

The Restaurant and Catering Association of Australia says some restaurants may now consider opening again on Sundays.

“It’s the first time ever that we have had a decision that recognises the link between penalty rates and jobs,’’ said association CEO John Hart.

“The majority of the decision around closing on Sundays is made around the cost of labour.’’

United Voice national secretary David O’Byrne said it was looking at an appeal, as the decision affected “the most vulnerable workers in the industry’’.

“The good part of this decision is that it acknowledges that Sundays are special days and people should be compensated,’’ he said.

“But we don’t accept that wages are the key determinant in restaurants’ profitability and opening on Sundays.”

Source: Herald Sun - 15 May 14