Cuts in penalty rates
The Fair Work Commission has cut Sunday and public holiday penalty rates for hospitality, retail and fast food workers.
In its long awaited decision, the Commission ruled that existing levels of Sunday penalty rates paid in retail, fast food, hospitality and pharmacy industries will be reduced from the existing levels.
This will see hospitality employees getting their Sunday pay reduced from 175 per cent to 150 per cent. Casual hospitality workers' pay will remain unchanged.
Sunday rates for fast-food employees' will go from 150 per cent to 125 per cent for full-time and part-time staff. Rates for fast food casuals will be slashed from 200 per cent to 175 per cent.
Sunday penalty rates for full and part time workers in retail will go from 200 per cent to 150 per cent of their standard hourly rate, while casuals will go from 200 per cent to 175 per cent.
"The evidence also supports the proposition that a reduction in penalty rates is likely to lead to increased trading hours, an increase in the level and range of services offered on Sundays and public holidays and an increase in overall hours worked," FWC president Iain Ross said..
The decision is likely to trigger a major political battle.
The Turnbull government has indicated it will accept the Fair Work Commission ruling. But Labor says it will act to protect workers' take-home pay in the event of any reduction and the Australian Greens oppose any cuts to penalty rates.
Australian Council of Trade Union president Ged Kearney said workers on minimum wages needed weekend penalty rates to survive.
"People whose pay is going to be cut ... will simply have to work more hours to make up that take-home pay," Ms Kearney said.
The Australian Industry Group welcomed the decision.
“In the fast food industry, weekends and evenings are peak times. Regular business hours have little relevance to businesses in the fast food industry and, therefore, penalty rates that were designed many decades ago around regular business hours need to be re-set,” Australian Industry Group chief executive Innes Willox said.
“In the Decision, the Commission has recognised that existing Sunday penalty rates in the fast food industry are not fair for employers and no longer relevant.”
by Leon Gettler, February 23rd 2017
