Restaurants and cafes back off on penalty rates
Cafes and restaurants have dropped their bid to cut Sunday penalty rates.
The surprise announcement that they want to drop action in the Fair Work Commission comes with them failing to provide evidence that the cuts would create jobs.
The Fair Work Commission was due to hear the application to cut rates from 150 per cent to 125 per cent from the employer group, the Restaurant & Catering Industrial (RCI) on Thursday.
The group delivered a last minute statement saying it would not proceed.
The development is significant because restaurants and cafes were one of the few sectors not to achieve cuts to Sunday penalty rates in the Fair Work Commission’s decision earlier this year that cut rates for retail, fast food, hotels, pubs and pharmacy industries.
The industry union, United Voice, welcomed the decision.
“RCI were rebuffed by the Commission in the penalty rate cut decision earlier this year on the basis that their case had no merit. Their last-minute decision to not pursue the application shows that they knew that their case to cut pay had no merit,” Jo-anne Schofield, United Voice National Secretary, said.
“It is a relief for restaurant workers that their Sunday penalty rates are no longer under attack. It was always perverse that a booming restaurant industry was going on the attack against their workers.
At the same time, the Fair Work Ombudsman has launched its first contempt of court action against a Queensland tour operator, alleging the operator contravened a freezing order by transferring $41,000 into a family trust without paying $30,000 owed to employees.
Freezing orders have been made in the Federal Circuit Court against Leigh Alan Jorgensen, the owner-operator of Cairns company Trek North Tours.
The court ruling prevents any dispersion of assets held by him or the company. The orders apply until penalties and back payments from litigation relating to the underpayment of wages were complied with.
The court also fined Trek North $55,000 and Mr Jorgensen $12,000 after the company failed to adhere to compliance notices requiring five overseas backpackers on 417 working visas be reimbursed almost $30,000 in wages and entitlements.
by Leon Gettler, November 17th 2017
