Hungry' Jack Cowin's solution to penalty rate stand-off

Date
    December 18, 2015
    Canberra Times

Consumers may have to pay more for a Whopper burger if Sunday penalty rates aren't reduced.

Hungry Jack's founder Jack Cowin says consumers will have to pay more for products such as fast food, restaurant meals and hotel rooms if a long-running campaign to reduce weekend penalty rates fails.   :-?

Mr Cowin, the executive chairman of Hungry Jack's and chairman and major shareholder of Domino's Pizza Enterprises, says retailers may have to start charging a premium to recoup higher labour costs if weekend penalty rates are not reduced.   :(

"If society says we're going to charge you a penalty to employ people during those hours then it's fair the business has to pass that on to the customer," Mr Cowin told Fairfax Media in an interview marking the opening of his 400th Hungry Jack's restaurant on Friday.


Like Prime Minister Malcolm Turnbull, Hungry Jack's founder Jack Cowin believes Sunday penalty rates are an anachronism.

"It's not popular [cutting penalty rates] and one of the traditions in this country is how do you maintain people's living standards – when you try to take something away from them they don't like that," Mr Cowin said.

"But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work.

"If people are unable to do away with penalties … the solution is an adaptation. If the business, in order to employ people and provide this service, is open on Sunday you may pay more … that to me is a sensible way to be able to deal with this."

The Business Council of Australia's call for an overhaul of penalty rates has been strongly endorsed by retailers such as Myer and Solomon Lew and fast food chains such as McDonald's, which says penalty rates are a major contributor to high youth unemployment.
More flexible workforce

Prime Minister Malcolm Turnbull has promised to make penalty rates "front and centre" of his reform agenda, saying the workforce needs to be more flexible, but Labor and the Greens say reducing penalty rates would hit low-income and middle-class families already struggling with rising living costs.

Retail Council chief executive Anna McPhee said a survey of 1000 people in December found 69 per cent of those polled supported reducing Sunday penalty rates to the Saturday rate of time-and-a-half.

A draft Productivity Commission report in August recommended cutting Sunday penalty rates in certain industries to be in line with Saturday pay rates. The recommendations are now being reviewed by the Fair Work Commission.

"The majority of Australians have indicated they support the Productivity Commission recommendations, which we anticipate will be unchanged," Ms McPhee said.

Australian Retailers Association executive director Russell Zimmerman said general retailers were not in a position to charge more on Sundays: "people would come back on Monday".

"But if rates were reduced, as I believe they should, [retailers] have an opportunity to employ more staff," Mr Zimmerman said.

Mr Cowin, who is also a non-executive director of Fairfax Media, says in an era when consumers expect to be able to shop seven days a week, the current penalty rate regime lacks common sense and threatens Australia's ability to compete for international tourists.

"Where penalty rates are appropriate is where you're working the sixth and seventh day, or working from midnight til dawn, but a Monday and a Sunday should be business as usual in this industry," he said.

"If tourism is a growth area, it's really important that we get on top of this – if you can't provide the service and you don't have the hotel rooms we're going to miss out."

Mr Cowin said Hungry Jack's, which employs 18,000 people, is already looking at whether to raise prices on weekends to recoup higher wage costs and maintain service levels if double-time rates on Sunday are maintained.

"I think you will see more of that; it's being tested in various places," he said. "We are looking at it."

"If you say the labour cost is 30 per cent and work back you'd probably have to put things up 10 per cent on a weekend and people would probably pay that," he said.

Quote:

But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work.

Excellent question.

Armchair_Politician wrote on Dec 18^th, 2015 at 6:24am:

Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question.

Society values weekends more. The threat to increase prices is nonsense, they have to compete in that space.

Armchair_Politician wrote on Dec 18^th, 2015 at 6:24am:

Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question.

Why don't you phone Jack's office this Sunday and ask him yourself.

Kytro wrote on Dec 18^th, 2015 at 6:28am:

Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Society values weekends more. The threat to increase prices is nonsense, they have to compete in that space.

its hard for me to tell the difference you know....most business in this day and age is 24/7 anyway....if we wish to compete with the rest of the world that is...

I dont know about burgers I would think thats the last thing I would worry about.. eating a burger on a Sunday is not exactly compulsory is it??....

its a choice....

its time commonsense kicked in...and we all stopped being selfish..... most peoples life doesnt stop on a Sunday anymore..

cods wrote on Dec 18^th, 2015 at 6:34am:

Kytro wrote on Dec 18th, 2015 at 6:28am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Society values weekends more. The threat to increase prices is nonsense, they have to compete in that space. its hard for me to tell the difference you know....most business in this day and age is 24/7 anyway....if we wish to compete with the rest of the world that is... I dont know about burgers I would think thats the last thing I would worry about.. eating a burger on a Sunday is not exactly compulsory is it??.... its a choice.... its time commonsense kicked in...and we all stopped being selfish..... most peoples life doesnt stop on a Sunday anymore..

Once banks, government services, accountants and other professional services open the same time on weekends as weekdays, you might have a point, but currently society values the weekend more generally, and thus it should remain protected.

mostly schoolkids working there and they are happy to get a job on the weekend.

and the training at maccas and HJ's is first rate.

so pitiful that lefties want them at home on the couch, smoking pot and developing the beta role of the Durrrrrrr existence.

i suppose this makes them more easily recruitable to the left side (aka the chode scrub loser side) of a worthless life full of failure.

And if the price of junk food does go up, thats great, the fat scrubs with no self discipline who cant be bothered making a salad can lower their cholesterol

Can i make the point that while i agree with cutting penalty rates, using hungry jacks is a poor example.  They wont hire more people, the restsurants already work at capacity because processes are highly labour intensive.  Its bulocks to suggest they would hire more staff, they wont.

aquascoot wrote on Dec 18^th, 2015 at 6:46am:

mostly schoolkids working there and they are happy to get a job on the weekend. and the training at maccas and HJ's is first rate. so pitiful that lefties want them at home on the couch, smoking pot and developing the beta role of the Durrrrrrr existence. i suppose this makes them more easily recruitable to the left side (aka the chode scrub loser side) of a worthless life full of failure. And if the price of junk food does go up, thats great, the fat scrubs with no self discipline who cant be bothered making a salad can lower their cholesterol

What universe are you posting from?

Because it sure ain't this one.

Armchair_Politician wrote on Dec 18^th, 2015 at 6:24am:

Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question.

As a contractor, I don't get penalty rates if I work on a weekend.

But what I DO get is a less-crowded work environment and a more relaxed atmosphere
so I can actually get more done.

Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money.

Kat wrote on Dec 18^th, 2015 at 6:59am:

Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. As a contractor, I don't get penalty rates if I work on a weekend. But what I DO get is a less-crowded work environment and a more relaxed atmosphere so I can actually get more done. Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money.

Collecting the dole isn't contract work.

Kytro wrote on Dec 18^th, 2015 at 6:41am:

cods wrote on Dec 18th, 2015 at 6:34am: Kytro wrote on Dec 18th, 2015 at 6:28am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Society values weekends more. The threat to increase prices is nonsense, they have to compete in that space. its hard for me to tell the difference you know....most business in this day and age is 24/7 anyway....if we wish to compete with the rest of the world that is... I dont know about burgers I would think thats the last thing I would worry about.. eating a burger on a Sunday is not exactly compulsory is it??.... its a choice.... its time commonsense kicked in...and we all stopped being selfish..... most peoples life doesnt stop on a Sunday anymore.. Once banks, government services, accountants and other professional services open the same time on weekends as weekdays, you might have a point, but currently society values the weekend more generally, and thus it should remain protected.

nothing to stop you doing banking 24/7....

govt services..

are you suggesting

hospitals and firies and police and Ambos and SES 


are NOT GOVT SERVICES???>...


what about the guys that stop water pouring into you house from a main break on a Sunday???

.....how about electrical people  taking a holiday on Sunday????....

TV anyone...no not on Sundays... ::) ::) ::) ::) ::) ::)

sorry mate you cannot win... just because we take all this for granted now days....

doesnt mean it isnt  happening on Sunday

Armchair_Politician wrote on Dec 18^th, 2015 at 7:07am:

Kat wrote on Dec 18th, 2015 at 6:59am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. As a contractor, I don't get penalty rates if I work on a weekend. But what I DO get is a less-crowded work environment and a more relaxed atmosphere so I can actually get more done. Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money. Collecting the dole isn't contract work.

oh AP.. thats unkind... and not called for.

cods wrote on Dec 18^th, 2015 at 7:27am:

Armchair_Politician wrote on Dec 18th, 2015 at 7:07am: Kat wrote on Dec 18th, 2015 at 6:59am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. As a contractor, I don't get penalty rates if I work on a weekend. But what I DO get is a less-crowded work environment and a more relaxed atmosphere so I can actually get more done. Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money. Collecting the dole isn't contract work. oh AP.. thats unkind... and not called for.

So is Kat.

cods wrote on Dec 18^th, 2015 at 7:27am:

nothing to stop you doing banking 24/7.... govt services.. are you suggesting hospitals and firies and police and Ambos and SES are NOT GOVT SERVICES???>... what about the guys that stop water pouring into you house from a main break on a Sunday??? .....how about electrical people  taking a holiday on Sunday????.... TV anyone...no not on Sundays... Roll Eyes Roll Eyes Roll Eyes Roll Eyes Roll Eyes Roll Eyes sorry mate you cannot win... just because we take all this for granted now days.... doesnt mean it isnt  happening on Sunday

They are all, except for the internet banking, Essential services. Essential services have always been 24/hrs / 7 days. Nothing has changed.

DO they pay anyone penalty rates for you to do your internet banking on a Sunday Cods? Can you walk into your local council office to ask for a copy of your sewerage diagram on a Saturday afternoon? If you call an electrician on a Sunday I guarantee he'll charge you double or in some cases triple his usual call out fee.

Stop pretending government offices are open weekends. Apart from the essential services, and they haven't changed their working hours in at least half a century,  very few government or professional departments are open on weekends.

Most business is not 24/7 these days, what universe do you live in? Not even Woolworths is open past 8 or 10pm in most places.

wrote on Dec 18^th, 2015 at 6:08am:

"If society says we're going to charge you a penalty to employ people during those hours then it's fair the business has to pass that on to the customer," Mr Cowin told Fairfax Media in an interview marking the opening of his 400th Hungry Jack's restaurant on Friday.

Jack, being the dickhead he's always been.

Penalty rates are not something new.

Workers aren't asking for anything extra.

Yes Greggery, but it looks like jack wants more money for his hamburgers.  I have a local fish and chip shop near where I live.  They are open on the weekends, yet dont charge any more for their hamburgers.  Which are very good.   :)

What is an acceptable rate for unskilled kids to flip burgers on weekends?

If they work weekends, then they should get the penalty rates.   ;)    

Who eats those disgusting things anyway? Way back, late 60s or early 70s one of these places opened opposite my workplace. Decided to buy one and see what they were like. Tasteless.

I ate one more, working back late one Sunday evening wandered over to the top of what is now Rundle Mall intending to get some take away from the infamous dragon phoenix restaurant (a decided shortage of cats in that part of Adelaide  ;) ) but it was shut. So I bought a burger at the hamburger joint next door. They were closing so gave me, gratis, two onion rings. None of it had any taste and I could not tell if the onion rings were actually made of onion!

Armchair_Politician wrote on Dec 18^th, 2015 at 6:24am:

Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question.

Hungry Jacks do not pay double time penalty rates for Sundays so the honesty of the question looks dubious.

Hungry Jacks is just trying to make the worker cop the collapse of fast food revenue because of "healthy eating" trends. This is why McDonalds has radically changed their menu and branding in Australia.

HJs have survived decades with penalty rates, their claim is bunk.

Armchair_Politician wrote on Dec 18^th, 2015 at 7:33am:

cods wrote on Dec 18th, 2015 at 7:27am: Armchair_Politician wrote on Dec 18th, 2015 at 7:07am: Kat wrote on Dec 18th, 2015 at 6:59am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. As a contractor, I don't get penalty rates if I work on a weekend. But what I DO get is a less-crowded work environment and a more relaxed atmosphere so I can actually get more done. Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money. Collecting the dole isn't contract work. oh AP.. thats unkind... and not called for. So is Kat.

And is it any wonder, when I have to put up with that sort of bullcrap on a daily basis.

Kat wrote on Dec 18^th, 2015 at 6:59am:

Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. As a contractor, I don't get penalty rates if I work on a weekend. But what I DO get is a less-crowded work environment and a more relaxed atmosphere so I can actually get more done. Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money.

'contractor' sounds like such a lofty term for.. BIKE ASSEMBLER.

Dnarever wrote on Dec 18^th, 2015 at 11:11am:

Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Hungry Jacks do not pay double time penalty rates for Sundays so the honesty of the question looks dubious.

Would you like to confirm that with actual facts since you have the tendency to be a pathological liar?

mariacostel wrote on Dec 19^th, 2015 at 6:32pm:

Dnarever wrote on Dec 18th, 2015 at 11:11am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Hungry Jacks do not pay double time penalty rates for Sundays so the honesty of the question looks dubious. Would you like to confirm that with actual facts since you have the tendency to be a pathological liar?

Maria asking for proof?

---

mariacostel wrote on Dec 19^th, 2015 at 6:31pm:

Kat wrote on Dec 18th, 2015 at 6:59am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. As a contractor, I don't get penalty rates if I work on a weekend. But what I DO get is a less-crowded work environment and a more relaxed atmosphere so I can actually get more done. Since I'm paid by the job, not by the hour, it does tend to equate to a little extra money. 'contractor' sounds like such a lofty term for.. BIKE ASSEMBLER.

he is contracted, does not work on wages therefore he is a contractor. Whats up your arse?

John Smith wrote on Dec 19^th, 2015 at 7:06pm:

mariacostel wrote on Dec 19th, 2015 at 6:32pm: Dnarever wrote on Dec 18th, 2015 at 11:11am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Hungry Jacks do not pay double time penalty rates for Sundays so the honesty of the question looks dubious. Would you like to confirm that with actual facts since you have the tendency to be a pathological liar? Maria asking for proof?

Is Maria making up Whoppers for free?!

mariacostel wrote on Dec 19^th, 2015 at 6:32pm:

Dnarever wrote on Dec 18th, 2015 at 11:11am: Armchair_Politician wrote on Dec 18th, 2015 at 6:24am: Quote: But why should somebody who works part-time on a Sunday get double what someone who works on a Monday when they're doing the same work. Excellent question. Hungry Jacks do not pay double time penalty rates for Sundays so the honesty of the question looks dubious. Would you like to confirm that with actual facts since you have the tendency to be a pathological liar?

Sheesh, Pot meet Kettle.

ian wrote on Dec 19^th, 2015 at 11:08pm:

Whats up your arse?

she assembled her own bike and forgot to put her seat on ... now she has a seat pole permanently lodged up her rectum

I reckon let them put their prices up. If suckers are willing to pay so be it.

I also reckon though that these fast food outlets should be made financially liable for their packaging being used to litter... So, if a HJ bag, box etc is found lying on the ground, they get the big fine - pass that on to the consumer as well, feel free...

Penalty rates are in place for a sound reason which has not changed. Stop attacking wages and conditions - improve employer/employee relationships by looking after your workers and watch productivity increase.