Penalty rates a poll issue
With industrial relations shaping up as a key election issue, the Coalition and Labor opposition are set to deal with the question of penalty rates full on.
The issue is in the political foreground at a time when employers are seeking to cut Sunday penalty rates from 299 per cent to 150 per cent and public holiday penalties from 250 per cent to 200 per cent.
At the same time, penalty rates in seven awards in the hospitality and retail sectors are now being reviewed by the Fair Work Commission as part of its four yearly review of modern awards under the Fair Work Act.
With the decision expected in July, the issue could potentially become as politically damaging as the Reserve Bank’s decision to raise interest rates during the 2007 election campaign, which was politically damaging to the Coalition.
Former ACTU president and Labor minister Martin Ferguson accused the unions of using workers as “political pawns” in the fight over penalty rates.
Writing in The Australian, Mr Ferguson said that unions had to accept that times had changed since the 1950s.
“We support workers being remunerated extra for working on weekends and public holidays, but the compensation needs to be sensible, otherwise businesses just close or reduce hours,’’ Mr Ferguson said.
“The unions need to explain how a worker not earning anything is better off than a worker earning a reasonable wage with a realistic loading?’’
Opposition leader Bill Shorten said a Labor government would accept a Fair Work Commission ruling that Sunday penalty rates be cut.
Despite Labor supporting the Sunday penalties regime, Mr Shorten said his government would accept the industrial umpire’s decision.
“And that makes a big difference between us and the Liberals,” Mr Shorten told radio station 3AW.
“There was minimum rates for owner drivers in the transport and logistics industry and when the government didn’t like what the tribunal did, they abolished it.”
At the same time, Mr Shorten said he supported people having penalty rates as a set of minimum conditions.
by Leon Gettler, April 21st 2016
