Browse Directory

Small businesses and restaurants forced to close over Easter long weekend because they can't afford to pay inflated penalty rates that allow teenagers to earn up to $50 an HOUR

  • Small businesses will be forced to close over the Easter long weekend
  • Penalty rates of up to two-and-a-half times pay are affecting employees
  • The inflated penalty rates allow casual workers to earn up to $50 an hour
  • The Australian Chamber of Commerce has called on the federal government to make changes to the penalty rates to help small operators
  • But Unions has claimed workers are being subjected to a false and misleading campaign
 
Small businesses and restaurants will be forced to close over the Easter long weekend as they struggle to cover the costs of penalty rates on public holidays.

Many operators across the country will face penalty rates of up to two-and-a-half times regular pay that would allow young workers to earn around $50 an hour as a casual.

But the Australian Chamber of Commerce has launched a campaign in a bid for small businesses to voice their concerns and call on the federal government to make changes to the penalty rates.

The Too Big to Ignore campaign will allow small retailers and hospitality businesses to put up posters in their windows explaining why they are closed.

'We're sorry we're closed today. We'd like to be able to serve you. We'd like to give local people jobs. But the ­penalty rates are too high,' the posters will read.

ACCI chief executive Kate Carnell said businesses that remain open are expected to lose money, with the extra holiday trade cancelled out by the extra wage costs.

'This is a lose-lose situation,' Ms Carnell said.

'Customers lose because the services they want are harder to access; staff lose because they don't get the hours many are seeking at work; and business proprietors lose because they get little benefit from the holiday traffic.'

The campaign will also allow businesses that remain open over the public holidays the option to display a sign in their windows to explain why they are operating with reduced staff.

'We will be open today to serve our loyal customers. We will have fewer staff than we wished. We'd like to give local people jobs. But the penalty rates are too high,' the poster will read. 

The penalty rates will come into force from Good Friday to Easter Monday in retail, restaurant, hotel, pharmacy, fast food, dry cleaning, amusements and hair and beauty sectors.

This means a casual retail shop assistant or a fast food employee is paid a minimum $50.94 an hour and a person working behind a bar is paid at least $49.55 an hour on public holidays.

But the Australian Unions has claimed workers are being subjected to a false and misleading campaign about penalty rates by employer groups in the lead up to Easter.

ACTU President Ged Kearney said the business community are using the Easter break as a justification to attack penalty rates by saying it's unaffordable to hire more workers.

'The truth is the share of business income going to wages in retail and hospitality has fallen in recent years,' Ms Kearney said in a statement.

'There is no evidence this will create new jobs, but plenty of evidence it will hurt low-paid workers.

'We know most retail and hospitality workers are paid less than Full Time Average Weekly Total Earnings and working over the Easter break allows them extra disposable income to spend in shops and cafes – the very businesses that are driving this attack.

'Cutting penalty rates have nothing to do with job creation or productivity - it is about cutting people's pay packets and disposable income.'

 

Source:  The Daily Mail - 3rd April 2015