Restaurants claim victory in fight for lower weekend penalty rates

Hospitality industry union United Voice had appealed a Fair Work Commission ruling to allow the reduction in weekend loadings from 175 per cent to 150 per cent.

But the appeal was dismissed by the Full Federal Court with Justice Rares, Justice Bromberg and Justice Griffiths ruling that the lowering of penalty rates should stand.

CEO of Restaurant and Catering Australia John Hart said the decision would provide much needed labour cost relief, and encourage businesses to remain open on Sundays.

 
Restaurant and Catering Australia CEO John Hart. Picture: Jane Dempster

 
“It’s taken 900-days and $1.8 million in legal costs but finally this decision has been made,” said Mr Hart.

“It will save restaurants around $120 million a year, and that saving will allow businesses to open, to provide staff with more hours and customers with more choice.”

Had penalty rates been raised to 175 per cent, restaurateurs would have had to pay casual employees at level two and below, around $32 an hour.

Most of the workers receive a base rate of $18 an hour.

Waiters feel the pinch as tipping dries up

United Voice had challenged the commission’s decision to allow the reduction on the basis that cutting weekend rates would lead to high staff turnover in the industry.

The union represents about 120,000 hospitality workers.

Penalty rates have long been an issue for the restaurant industry with many now opting to close on weekends and public holidays rather than pay staff a premium.

Source: Herald Sun - 26th August 2014