Labor to legislate on penalty rates
The Australian Labor Party this week will introduce legislation to stymie the Fair Work Commission’s planned cut to penalty rates.
Flagging a Workchoices style campaign, Labor leader Bill Shorten has written to Prime Minister Malcolm Turnbull warning him Labor will introduce legislation on Monday to protect penalty rates.
“In the absence of bipartisan support, I will introduce a Bill to protect the take home pay of Australian workers, and ensure that modern awards are still the minimum safety net they were intended to be,” Mr Shorten said.
The legislation seeking to stop the commission’s draft decision from coming into force will also aim to ensure that penalty rates could not be cut in the future if it means reducing take home pay.
The bill is likely to fail given that the government holds a one seat majority in the Lower House.
But shadow Treasurer Chris Bowen said Labor will be putting pressure on cross benchers and government MPs to support the legislation.
“Some of those cross benchers represent rural and regional areas where penalty rates are particularly important,’’ Mr Bowen told the ABC’s Insiders program.
“They are particularly important for the economy. We’re in a situation where aggregate demand is under real pressure in the economy. The idea that cutting wages of people who would spend all of those wages is an answer, particularly in rural and regional Australia, is really something that is wrong headed and I would imagine and hope those cross benchers would recognise that.
“We would be talking to the cross benchers and indeed any government members who want to talk to us in both houses to try and get a sensible solution here.”
The Greens also oppose the changes and plan to introduce legislation which would set penalty rates in law.
The Fair Work Commission draft decision will see hospitality employees getting their Sunday pay reduced from 175 per cent to 150 per cent, Sunday rates for fast-food employees going from 150 per cent to 125 per cent for full-time and part-time staff, rates for fast food casuals being slashed from 200 per cent to 175 per cent and Sunday penalty rates for full and part time workers in retail going 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.
Labor says the changes will see low-paid workers taking home $77 less a week.
by Leon Gettler, February 27th 2017
