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Penalty rate cuts will blow out gender pay gap: Australia Institute

With the debate over penalty rates continuing, there is now evidence that women earn 33 per cent less than men when their rates of part-time work are taken into account.

The analysis, done by the left-leaning Australia Institute and Centre for Future Work shows that women make up a disproportionate number of employees in retail and food and beverage services, two industries where penalty rates will be cut.

According to the research, women represent 55 per cent of employees in the retail sector and 53 per cent in food and beverage services.

More to the point, 70 per cent of women work part-time in food and beverages compared with 52 per cent of men. In retail, it’s 60 per cent of the women employed working part-time compared with 35 per cent of men.

The number of women working part time in Australia blows out the national gender pay gap from 17 per cent to 33 per cent.

Unions NSW assistant secretary, Emma Maiden, said these figures showed the Turnbull government was failing women.

“Cuts to penalty rates for retail and hospitality workers will impose a higher burden on women workers,” Maiden told The Guardian. “These women can least afford it and certainly don’t deserve it.

“The Turnbull government should show their support for working women and their commitment to equality by agreeing to overturn this pay cut.”

The Fair Work Commission decision 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.

by Leon Gettler, March 10th 2017