Penalty rate cuts come in
The penalty rate cuts across Australia announced by the Fair Work Commission in February have now come into effect.
The impact of the rate cuts will be felt across the retail, pharmacy, fast food and hospitality industries.
Changes to public holiday rates are effective immediately.
However, changes to Sunday rates will be phased in and introduced gradually.
It will see Sunday rates falling over a set period of time with workers losing 5 per cent of the pay packet during the first phase, and up to 50 per cent over an allocated period of time.
The changes will effect businesses and 700,000 workers across Australia.
In an interview with the Guardian, Iain Ross, president of the FWA, said the changes would provide some relief for small business owners struggling with the current penalty rates, with many forced to close on Sundays and public holidays.
He said this would improve employment as it will see businesses staying open longer and employing more people on Sundays.
The changes however have not won all businesses over.
Some see problems with cutting penalty rates.
David Glover, proprietor of Glover Chemists in Sydney, for example has expressed doubt whether the changes will result in more people being employed by small business owners. The focus needs to be on current staff.
“The thinking is flawed. [It’s about] the welfare of the staff who work all the time and give away their weekends. If they’re prepared to go to work [on weekends], then they have to be rewarded for it,” Glover told Broadsheet.
And some, like Amit Tewari, founder and director of Soul Burger in Sydney have pledged to keep paying penalty rates.
“In our current economic system, employees that work under the restaurant awards are amongst the lowest paid, with the least leverage when negotiating with employers,” Tewari told Broadsheet. “Without basic income guarantees, we need to be firm with award rates.”
by Leon Gettler, July 10th 2017
